Riverview Bancorp Insiders May Regret Not Buying More, Market Cap Hits US$124m

Insiders who bought Riverview Bancorp, Inc. (NASDAQ:RVSB) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$14m as a result of the stock's 12% gain over the same period. As a result, their original purchase of US$257.8k worth of stock is now worth US$357.5k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Riverview Bancorp

The insider David Nierenberg made the biggest insider purchase in the last 12 months. That single transaction was for US$151k worth of shares at a price of US$4.65 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$6.09. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Riverview Bancorp insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Riverview Bancorp

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Riverview Bancorp insiders own about US$5.2m worth of shares (which is 4.2% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About Riverview Bancorp Insiders?

It doesn't really mean much that no insider has traded Riverview Bancorp shares in the last quarter. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Riverview Bancorp stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Riverview Bancorp has 1 warning sign and it would be unwise to ignore this.

Of course Riverview Bancorp may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.