Investors who take an interest in Banc of California, Inc. (NYSE:BANC) should definitely note that the President, Jared Wolff, recently paid US$11.50 per share to buy US$115k worth of the stock. Although the purchase only increased their holding by 6.3%, it is still a solid purchase in our view.
Banc of California Insider Transactions Over The Last Year
In fact, the recent purchase by President Jared Wolff was not their only acquisition of Banc of California shares this year. They previously made an even bigger purchase of US$251k worth of shares at a price of US$15.18 per share. That means that even when the share price was higher than US$12.00 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Banc of California insiders may have bought shares in the last year, but they didn't sell any. They paid about US$12.48 on average. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Banc of California is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that Banc of California insiders own 1.1% of the company, worth about US$6.6m. Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About Banc of California Insiders?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Banc of California insiders are expecting a bright 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Banc of California.
Of course Banc of California 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, but not derivative transactions.
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