Executive Chairman of SR Bancorp David Orbach Buys 3.8% More Shares

Even if it's not a huge purchase, we think it was good to see that David Orbach, the Executive Chairman of SR Bancorp, Inc. (NASDAQ:SRBK) recently shelled out US$99k to buy stock, at US$13.19 per share. Although the purchase is not a big one, increasing their shareholding by only 3.8%, it can be interpreted as a good sign.

Our free stock report includes 1 warning sign investors should be aware of before investing in SR Bancorp. Read for free now.

SR Bancorp Insider Transactions Over The Last Year

In fact, the recent purchase by Executive Chairman David Orbach was not their only acquisition of SR Bancorp shares this year. They previously made an even bigger purchase of US$183k worth of shares at a price of US$9.30 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$13.35. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

SR Bancorp insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around US$10.58. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for SR Bancorp

SR Bancorp is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Does SR Bancorp Boast High 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. From our data, it seems that SR Bancorp insiders own 6.9% of the company, worth about US$8.4m. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At SR Bancorp Tell Us?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that SR Bancorp insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 1 warning sign for SR Bancorp you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.