Anyone interested in Parke Bancorp, Inc. (NASDAQ:PKBK) should probably be aware that the Independent Chairman of the Board, Daniel Dalton, recently divested US$105k worth of shares in the company, at an average price of US$20.96 each. On the bright side, that sale was only 3.7% of their holding, so we doubt it's very meaningful, on its own.

See our latest analysis for Parke Bancorp

Parke Bancorp Insider Transactions Over The Last Year

The Independent Director, Jeffrey Kripitz, made the biggest insider sale in the last 12 months. That single transaction was for US$194k worth of shares at a price of US$19.60 each. That means that even when the share price was below the current price of US$20.74, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 3.5% of Jeffrey Kripitz's holding.

Over the last year, we can see that insiders have bought 7.43k shares worth US$132k. On the other hand they divested 42.50k shares, for US$767k. All up, insiders sold more shares in Parke Bancorp than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Parke Bancorp better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Parke Bancorp

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Parke Bancorp insiders own about US$28m worth of shares. That equates to 11% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Parke Bancorp Tell Us?

An insider sold Parke Bancorp shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Parke Bancorp. Every company has risks, and we've spotted 1 warning sign for Parke Bancorp you should know about.

Of course Parke Bancorp 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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