On February 7, 2024, James Kao, a director at RBB Bancorp (RBB, Financial), increased the insider's stake in the company by purchasing 15,000 shares. This transaction was filed with the SEC and can be found in detail here.
RBB Bancorp is a bank holding company headquartered in Los Angeles, California. The company operates through its subsidiary, Royal Business Bank, providing various banking products and services to the Chinese-American communities in Los Angeles County, Orange County, Ventura County, and in Las Vegas, Nevada. Services include remote deposit, e-banking, mobile banking, commercial and investor real estate loans, business loans and lines of credit, SBA 7A and 504 loans, mortgage loans, trade finance, and a full range of depository accounts.
Insider buying and selling activities are closely monitored by investors as they can provide insights into a company's internal perspective. An insider purchase can indicate the insider's confidence in the company's future prospects or that the insider believes the stock is undervalued.
Over the past year, the insider has purchased a total of 49,000 shares and has not sold any shares. The recent acquisition by the insider further solidifies a pattern of insider purchases at RBB Bancorp, with a total of 7 insider buys and no insider sells over the same timeframe.
On the valuation front, shares of RBB Bancorp were trading at $16.87 on the day of the insider's purchase, resulting in a market cap of $319.892 million. The price-earnings ratio stands at 7.64, which is below both the industry median of 9.25 and the company's historical median price-earnings ratio.
The stock's price relative to the GuruFocus Value (GF Value) indicates that RBB Bancorp is currently modestly undervalued. With a share price of $16.87 and a GF Value of $22.94, the price-to-GF-Value ratio is 0.74.
The GF Value is a proprietary intrinsic value estimate from GuruFocus, which is calculated based on historical trading multiples, a GuruFocus adjustment factor, and future business performance estimates provided by Morningstar analysts.
The insider's recent purchase adds to the positive insider trend observed at RBB Bancorp and may suggest a belief in the company's value proposition or future performance among those with intimate knowledge of the company.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
