Insider Buying: The OP Bancorp (NASDAQ:OPBK) Independent Chairman of the Board Just Bought 1.0% More Shares

Investors who take an interest in OP Bancorp (NASDAQ:OPBK) should definitely note that the Independent Chairman of the Board, Brian Choi, recently paid US$13.75 per share to buy US$138k worth of the stock. Although the purchase only increased their holding by 1.0%, it is still a solid purchase in our view.

See our latest analysis for OP Bancorp

OP Bancorp Insider Transactions Over The Last Year

The Independent Director Ock Kim made the biggest insider purchase in the last 12 months. That single transaction was for US$1.0m worth of shares at a price of US$12.90 each. That implies that an insider found the current price of US$13.75 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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. The good news for OP Bancorp share holders is that insiders were buying at near the current price.

Over the last year, we can see that insiders have bought 115.43k shares worth US$1.5m. On the other hand they divested 60.00k shares, for US$755k. In total, OP Bancorp insiders bought more than they sold over the last year. 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!

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.

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. OP Bancorp insiders own about US$45m worth of shares. That equates to 21% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The OP Bancorp Insider Transactions Indicate?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest OP Bancorp insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for OP Bancorp you should be aware of.

Of course OP Bancorp 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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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.