Anyone interested in Five Star Bancorp (NASDAQ:FSBC) should probably be aware that the Executive VP & Chief External Affairs Officer, Lydia Ramirez-Medina, recently divested US$193k worth of shares in the company, at an average price of US$44.92 each. That sale was 31% of their holding, so it does make us raise an eyebrow.
Over the last year, we can see that the biggest insider purchase was by Independent Director Larry Allbaugh for US$4.3m worth of shares, at about US$44.00 per share. That means that an insider was happy to buy shares at around the current price of US$44.11. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.
Over the last year, we can see that insiders have bought 142.73k shares worth US$6.3m. But they sold 25.51k shares for US$1.0m. In the last twelve months there was more buying than selling by Five Star Bancorp insiders. 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!
Check out our latest analysis for Five Star 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).
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Five Star Bancorp insiders own 20% of the company, worth about US$211m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
An insider hasn't bought Five Star Bancorp stock in the last three months, but there was some selling. In contrast, they appear keener if you look at the last twelve months. We are also comforted by the high levels of insider ownership. So we're not too bothered by recent selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Five Star Bancorp. For example - Five Star Bancorp has 1 warning sign we think you should be aware of.
But note: Five Star Bancorp may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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