Director James Kao has recently increased his stake in RBB Bancorp (RBB, Financial) by purchasing 7,000 shares of the company's stock, according to a SEC Filing dated 2024-02-28. This transaction has added to the director's already significant holdings in the financial institution.
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 County, Orange County, Ventura County, and in Las Vegas, Nevada. The bank offers a suite of financial services including commercial and industrial lending, commercial real estate lending, trade finance, and retail banking.
The insider transaction history for RBB Bancorp shows a pattern of insider confidence, with a total of 9 insider buys over the past year and no insider sells during the same period. The recent acquisition by the insider, James Kao, is part of a series of purchases made by him over the past year, totaling 62,000 shares.
On the valuation front, shares of RBB Bancorp were trading at $16.83 on the date of the insider's latest transaction. The company has a market cap of $321.287 million. The price-earnings ratio of 7.43 is below both the industry median of 9.2 and the company's historical median, suggesting a lower valuation compared to its peers and its own past trading history.
The stock's price-to-GF-Value ratio stands at 0.73, with a GF Value of $23.13, indicating that RBB Bancorp is considered Modestly Undervalued according to GuruFocus's proprietary valuation model. The GF Value is determined by historical trading multiples, an adjustment factor based on past returns and growth, and future business performance estimates provided by Morningstar analysts.
The recent insider buying activity, coupled with the stock's current valuation metrics, may be of interest to investors looking for opportunities in the banking sector. As always, potential investors should conduct 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.
