Quite a few insiders have dramatically grown their holdings in United Security Bancshares (NASDAQ:UBFO) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for United Security Bancshares

The Last 12 Months Of Insider Transactions At United Security Bancshares

Over the last year, we can see that the biggest insider purchase was by Independent Director Jagroop Gill for US$1.1m worth of shares, at about US$7.96 per share. We do like to see buying, but this purchase was made at well below the current price of US$9.94. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Happily, we note that in the last year insiders paid US$1.4m for 183.87k shares. On the other hand they divested 5.80k shares, for US$54k. In the last twelve months there was more buying than selling by United Security Bancshares insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

United Security Bancshares Insiders Are Selling The Stock

Over the last three months, we've seen a bit of insider selling at United Security Bancshares. The selling netted US$47k for Senior VP & Chief Risk Officer Robert Oberg. But the good news is that there was purchasing too , worth US$14k. While it's not great to see insider selling, the net amount sold isn't enough for us to want to read anything into it.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. United Security Bancshares insiders own about US$37m worth of shares. That equates to 21% 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 United Security Bancshares Insider Transactions Indicate?

We note that there's been a little more insider selling than buying, recently. But the difference is small, and thus, not concerning. However, our analysis of transactions over the last year is heartening. Insiders own shares in United Security Bancshares and we see no evidence to suggest they are worried about the future. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

Of course United Security Bancshares may not be the best stock to buy. So you may wish to see this free collection of high quality 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 of direct interests only, but not derivative transactions or indirect interests.

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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.