Two Small-Cap U.S. Regional Bank Stocks That Insiders Love

Aside from hedge fund moves, tracking insider purchases is very important to our investment strategy. Therefore, in this article, I will look into two small-cap U.S. regional banks that witnessed insider purchases over the past few weeks.

Chuck Royce

One of these companies I would like to refer to is First Financial Bankshares Inc (NASDAQ:FFIN), a $2 billion market cap financial holding firm. Since the beginning of the year, the company has seen at least 12 insider purchases take place:

- The most active insider has been Johnny Trotter, one of First Financial Bankshares Inc (NASDAQ:FFIN)’s Board Directors. Starting on Jan. 31st, and through 8 different purchases, he added more than 12,500 shares to his holdings (both direct and indirect holdings), having paid prices ranging from $59.40 per share, to $62.00 per share. His most recent transaction occurred last Friday, when he acquired 7,100 shares of the company. He now owns more than 195,000 shares of the company, worth more than $12 million.

- The second-runner amongst insiders was another Board Director: Hamilton Murray Edwards. Between Jan. 29th and Feb. 3rd, he bought more than 1,500 shares of the company, for prices between  $59.80 per share and $62.40 per share. He now owns about 75,000 shares of the firm.

- Finally, there’s Ronald Giddiens, who on Jan. 2nd, procured 49 shares of the company for $64.77 each.

Despite the bullishness seen here and the firm’s above average margins and returns, analysts don´t seem to like this stock. I, myself, find it quite overvalued (check valuation). However, a more attractive entry point could become available soon. The company’s growth prospects make it an investment worth considering for the long-term, plus a 1.73% dividend yield makes your wait worthwhile.

Opinion amongst hedge funds is also quite divided. While prominent investor Israel Englander during the previous quarter initiated a position with 10,700 shares of the company, and Cliff Asness and Ken Griffin increased their stakes to 17,500 and 54,800 shares, respectively, others like Paul Tudor Jones sold out their positions.

The second case I would like to observe is that of Boston Private Financial Hldg Inc (NASDAQ:BPFH), a $1.1 billion market cap bank holding company which saw two insiders buy its stock since the beginning of 2014.

Mark Thompson, CEO at the Boston Private Bank business, acquired, on Jan. 31st around 18,000 shares of the company for $12.42 each. He currently owns more than 493,500 Boston Private Financial Hldg Inc (NASDAQ:BPFH) shares, valued at $6.8 million.

The other insider trade was registered last Thursday, when Eugene Colangelo, Board Director, acquired nearly 7,400 shares of the company for $13.51 apiece. Following this transaction, the Director holds some 139,900 shares.

Although most price targets indicate very little upside potential for the short term, this stock could deliver above average growth figures over the next five years. A 2.35% dividend yield makes it attractive for income-seeking investors, while its valuation just slightly surpasses its peers’ mean. With several hedge funds, including Chuck Royce‘s Royce & Associates (1.38 million shares) and Matthew Lindenbaum‘s Basswood Capital (1 million shares), not only betting on the company, but increasing its stakes in it, should you give it a shot as well?

Disclosure: Javier Hasse holds no position in any stocks mentioned

Recommended Reading:

Digging Into Two Energy Stocks That Insiders Seem to Love

Bottoms Up: Two Stocks That Insiders Are Chug-a-Lugging

Two Small-Cap Services Stocks That Insiders Love

 

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!