On May 24, 2023, Thomas Sa, President, CFO, and COO of California Bancorp (CALB, Financial), purchased 5,000 shares of the company's stock. This move comes as part of a broader trend of insider buying at the company, which has seen six insider buys over the past year. In this article, we will take a closer look at Thomas Sa's background, California Bancorp's business, and the relationship between insider transactions and the stock price.
Who is Thomas Sa?
Thomas Sa serves as the President, Chief Financial Officer, and Chief Operating Officer of California Bancorp. With extensive experience in the financial industry, Sa has played a crucial role in the company's growth and development. His decision to purchase 5,000 shares of CALB stock demonstrates his confidence in the company's future prospects.
California Bancorp's Business Description
California Bancorp is a regional bank holding company that operates through its subsidiary, California Bank of Commerce. The bank provides a wide range of financial services, including commercial loans, real estate loans, and deposit products, to small and medium-sized businesses, professionals, and individuals. With a focus on personalized service and tailored solutions, California Bancorp aims to build long-term relationships with its clients and support the growth of local communities.
Insider Buying and Selling Analysis
Over the past year, Thomas Sa has purchased a total of 5,000 shares and has not sold any shares. This indicates a positive sentiment towards the company's stock. In addition, there have been six insider buys and ten insider sells at California Bancorp over the same period. While the number of insider sells is higher than the number of insider buys, it is essential to consider the context and the overall trend of insider transactions.
Stock Price Relationship
On the day of Thomas Sa's recent purchase, shares of California Bancorp were trading at $14.3 apiece, giving the stock a market cap of $121.192 million. The price-earnings ratio is 5.33, which is lower than the industry median of 7.9 and lower than the company's historical median price-earnings ratio. This suggests that the stock is undervalued compared to its peers and its historical valuation.
Furthermore, with a price of $14.3 and a GuruFocus Value of $27.98, California Bancorp has a price-to-GF-Value ratio of 0.51. This indicates that the stock is significantly undervalued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, which takes into account historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
Conclusion
Thomas Sa's recent purchase of 5,000 shares of California Bancorp stock is a positive signal for investors, as it demonstrates his confidence in the company's future prospects. The stock's current valuation, with a price-earnings ratio lower than the industry median and a price-to-GF-Value ratio of 0.51, suggests that it is significantly undervalued. Investors should keep an eye on insider transactions and the stock's valuation to make informed decisions about their investments in California Bancorp.
