Trade Alert: The Independent Chairman of the Board Of OP Bancorp (NASDAQ:OPBK), Brian Choi, Has Just Spent US$437k Buying 3.4% 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$11.91 per share to buy US$437k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 3.4%.

See our latest analysis for OP Bancorp

The Last 12 Months Of Insider Transactions At OP Bancorp

Over the last year, we can see that the biggest insider purchase was by Independent Director Ock Kim for US$1.0m worth of shares, at about US$12.90 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$12.63). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Happily, we note that in the last year insiders paid US$3.7m for 294.51k shares. 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. 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!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of OP Bancorp

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$43m 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 OP Bancorp Tell Us?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in OP Bancorp shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for OP Bancorp (of which 1 is concerning!) you should know about.

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.

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