On February 13, 2024, James Kao, a director at RBB Bancorp (RBB, Financial), purchased 6,000 shares of the company's stock, according to a recent SEC Filing. This transaction has added to the insider's growing stake in the financial institution, with a total of 55,000 shares bought over the past year and no recorded sales in the same period.
RBB Bancorp operates as the bank holding company for Royal Business Bank, which provides various banking products and services to the Chinese-American communities in Los Angeles, Orange, and Ventura counties in California; and in Las Vegas, Nevada. The company's offerings 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 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. Insider buys often signal confidence in the company's future prospects, while insider sells may indicate the opposite. The recent purchase by the insider at RBB Bancorp aligns with a broader trend of insider acquisitions, with 8 insider buys recorded over the past year and no insider sells in the same timeframe.
On the valuation front, RBB Bancorp's shares were priced at $17.06 on the day of the insider's purchase, resulting in a market capitalization of $331.802 million. The price-earnings ratio stands at 7.92, which is below both the industry median of 9.04 and the company's historical median price-earnings ratio, suggesting a potentially undervalued position relative to its peers and its own trading history.
The stock's price relative to the GuruFocus Value (GF Value) further supports this assessment. With a share price of $17.06 and a GF Value of $23.01, RBB Bancorp's price-to-GF-Value ratio is 0.74, indicating that the stock is considered Modestly Undervalued according to GuruFocus's intrinsic value estimate. The GF Value is derived from historical trading multiples, a GuruFocus adjustment factor based on past returns and growth, and future business performance estimates from Morningstar analysts.
The insider's recent acquisition adds to the positive signals for potential investors, suggesting that those with knowledge of the company's inner workings see value at current prices. As always, investors are encouraged to consider the broader market context and perform their own due diligence before making investment decisions.
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.
