Stock Analysis

Insiders who bought stock earlier this year lose -US$50k as William Penn Bancorporation (NASDAQ:WMPN) drops to US$137m

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Insiders who bought US$447k worth of William Penn Bancorporation's (NASDAQ:WMPN) stock at an average buy price of US$11.78 over the last year may be disappointed by the recent 12% decrease in the stock. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$397k which is not ideal.

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.

Check out our latest analysis for William Penn Bancorporation

The Last 12 Months Of Insider Transactions At William Penn Bancorporation

Over the last year, we can see that the biggest insider purchase was by President Kenneth Stephon for US$144k worth of shares, at about US$11.49 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$10.46). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Happily, we note that in the last year insiders paid US$447k for 37.97k shares. But insiders sold 13.65k shares worth US$158k. Overall, William Penn Bancorporation insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NasdaqCM:WMPN Insider Trading Volume March 14th 2023

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

Insiders At William Penn Bancorporation Have Bought Stock Recently

It's good to see that William Penn Bancorporation insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought US$62k worth of shares. That shows some optimism about the company's future.

Does William Penn Bancorporation Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that William Penn Bancorporation insiders own 7.0% of the company, worth about US$9.5m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About William Penn Bancorporation Insiders?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that William Penn Bancorporation insiders are expecting a bright future. To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

What are the risks and opportunities for William Penn Bancorporation?

William Penn Bancorporation operates as the holding company for William Penn Bank that provides retail and commercial banking products and related financial services in the United States.

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No risks detected for WMPN from our risks checks.

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