Even if it's not a huge purchase, we think it was good to see that Valerie Moreno, the Independent Director of Riverview Bancorp, Inc. (NASDAQ:RVSB) recently shelled out US$60k to buy stock, at US$5.89 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

View our latest analysis for Riverview Bancorp

The Last 12 Months Of Insider Transactions At Riverview Bancorp

Over the last year, we can see that the biggest insider purchase was by Independent Director Larry Hoff for US$61k worth of shares, at about US$6.98 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$5.93). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months Riverview Bancorp insiders were buying shares, but not selling. Their average price was about US$5.97. I'd consider this a positive as it suggests insiders see value at around the current price. 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!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

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. We usually like to see fairly high levels of insider ownership. Insiders own 8.1% of Riverview Bancorp shares, worth about US$10m. 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 Riverview Bancorp Tell Us?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Riverview Bancorp we think they are probably pretty confident of a bright future. 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 Riverview Bancorp you should be aware of, and 1 of these is a bit unpleasant.