We note that the Hope Bancorp, Inc. (NASDAQ:HOPE) Executive VP & Chief Risk Officer, Thomas Stenger, recently sold US$51k worth of stock for US$13.93 per share. While that isn't a lot of money, it was a substantial 57% of their holding, so certainly isn't a good sign.
The Last 12 Months Of Insider Transactions At Hope Bancorp
Notably, that recent sale by Thomas Stenger is the biggest insider sale of Hope Bancorp shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$14.05. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was 57% of Thomas Stenger's holding.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Hope Bancorp better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership of Hope Bancorp
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Hope Bancorp insiders own about US$81m worth of shares. That equates to 4.7% 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 Hope Bancorp Insider Transactions Indicate?
An insider sold Hope Bancorp shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But since Hope Bancorp is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 3 warning signs for Hope Bancorp you should be aware of, and 1 of these can't be ignored.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
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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