In a recent move, RBB Bancorp (NASDAQ:RBB) director James Kao has increased his stake in the company. On March 15, 2024, Kao purchased 688 shares of RBB Bancorp's common stock at a price of $16.68 per share, totaling over $11,475.
This transaction has bolstered Kao's holdings in the bank, demonstrating his confidence in RBB Bancorp's future prospects. Following the purchase, Kao now owns a total of 536,064 shares in the company.
Investors often keep a close eye on insider transactions as they can provide insights into how the company's leadership perceives the firm's valuation and future performance. While insider buying can be seen as a positive sign, it is one of many factors that investors consider when evaluating their investment decisions.
RBB Bancorp, headquartered in Los Angeles, California, operates as a state commercial bank. This latest insider purchase may attract the attention of current and potential shareholders, as it reflects a direct investment by one of the company's directors in its equity.
For those interested in RBB Bancorp's stock performance and insider transactions, the company's shares are publicly traded on the NASDAQ stock exchange under the ticker symbol RBB.
InvestingPro Insights
In light of the recent insider purchase by director James Kao, RBB Bancorp's stock performance and financial health are of particular interest to investors. According to InvestingPro data, RBB Bancorp has a market capitalization of $314.52 million and a Price-to-Earnings (P/E) ratio of 7.62, which is below the industry average, suggesting that the stock may be undervalued. This is further supported by an adjusted P/E ratio for the last twelve months as of Q4 2023, which stands at 7.41.
Additionally, RBB Bancorp has demonstrated a commitment to returning value to shareholders, as evidenced by a dividend yield of 3.73% and a dividend growth of 14.29% in the last twelve months. This aligns with one of the InvestingPro Tips highlighting that RBB has raised its dividend for three consecutive years, indicating a stable and investor-friendly approach to capital distribution.
While RBB Bancorp has shown a large price uptick over the last six months with a total return of 35.36%, the company also experiences challenges. As per another InvestingPro Tip, the company suffers from weak gross profit margins, and net income is expected to drop this year. Despite these concerns, analysts predict the company will be profitable this year, which may reassure investors looking at the longer-term horizon.
For those who find these insights valuable, InvestingPro offers additional tips on RBB Bancorp and other companies. Currently, there are more InvestingPro Tips available for RBB, providing a deeper analysis of the company's financial health and future outlook. Interested readers can take advantage of the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, accessing a comprehensive suite of investment tools and data.
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