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Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Riverview Bancorp, Inc. (NASDAQ:RVSB), that sends out a positive message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Riverview Bancorp
Riverview Bancorp Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Chairman of the Board & Lead Independent Director Gerald Nies bought US$107k worth of shares at a price of US$4.85 per share. That means that an insider was happy to buy shares at above the current price of US$4.44. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While Riverview Bancorp insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Riverview Bancorp is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Riverview Bancorp Insiders Bought Stock Recently
There was some insider buying at Riverview Bancorp over the last quarter. Executive VP & Chief Credit Officer Robert Benke bought US$23k worth of shares in that time. It's great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.
Insider Ownership Of Riverview Bancorp
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 6.5% of Riverview Bancorp shares, worth about US$6.1m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Riverview Bancorp Insider Transactions Indicate?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Riverview Bancorp insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Riverview Bancorp. For example - Riverview Bancorp has 3 warning signs we think you should be aware of.