We'd be surprised if Parke Bancorp, Inc. (NASDAQ:PKBK) shareholders haven't noticed that the Independent Director, Jeffrey Kripitz, recently sold US$151k worth of stock at US$20.19 per share. On the bright side, that sale was only 3.1% of their holding, so we doubt it's very meaningful, on its own.

The Last 12 Months Of Insider Transactions At Parke Bancorp

In fact, the recent sale by Independent Director Jeffrey Kripitz was not their only sale of Parke Bancorp shares this year. They previously made an even bigger sale of -US$228k worth of shares at a price of US$22.77 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$20.12. So it may not tell us anything about how insiders feel about the current share price.

Happily, we note that in the last year insiders paid US$97k for 5.33k shares. But insiders sold 47.56k shares worth US$934k. In total, Parke Bancorp insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Parke Bancorp insiders own about US$27m worth of shares. That equates to 11% 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.

What Might The Insider Transactions At Parke Bancorp Tell Us?

An insider sold Parke Bancorp shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for Parke Bancorp you should be aware of, and 1 of them is potentially serious.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.