United Security Bancshares Independent Vice Chairman of the Board Acquires 4.5% More Stock

Investors who take an interest in United Security Bancshares (NASDAQ:UBFO) should definitely note that the Independent Vice Chairman of the Board, Jagroop Gill, recently paid US$8.34 per share to buy US$465k worth of the stock. Although the purchase only increased their holding by 4.5%, it is still a solid purchase in our view.

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United Security Bancshares Insider Transactions Over The Last Year

Notably, that recent purchase by Jagroop Gill is the biggest insider purchase of United Security Bancshares shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$9.19. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.

Happily, we note that in the last year insiders paid US$519k for 61.70k shares. On the other hand they divested 4.80k shares, for US$47k. Overall, United Security Bancshares insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for United Security Bancshares

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Does United Security Bancshares 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. United Security Bancshares insiders own about US$35m worth of shares. That equates to 22% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At United Security Bancshares Tell Us?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest United Security Bancshares insiders are well aligned, and that they may think the share price is too low. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

Of course United Security Bancshares 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.