PKBK
Parke Bancorp ($PKBK) CEO Buys Again During Price Dip, Contrasting with Executives' Heavy Selling
04/29/2025 21:08
Sentiment
C-Level
Summary
- Parke Bancorp ($PKBK) shows contrasting insider trading patterns with CEO Vito Pantilione consistently purchasing shares while other executives (particularly Director Jeffrey Kripitz) execute large-scale sales.
- The stock rose from $15 in June 2024 to $23 in November before settling at around $18.75 currently, with insider selling concentrated near the price peak.
- Low valuation multiples (P/E 7.83, P/B 0.73), share repurchase plan, and stable dividends are positive factors, while a 15% revenue decline presents a concern.
POSITIVE
- CEO Vito Pantilione's consistent share purchases demonstrate management confidence.
- Low valuation multiples (P/E 7.83, P/B 0.73) suggest potential undervaluation.
- 5% share repurchase plan and 3.83% dividend yield are positive for shareholder value.
- Healthy financial structure with $209.04 million in cash versus $148.35 million in debt.
- One-year return of +20.14% significantly outperformed the S&P 500's +8.69%.
NEGATIVE
- Multiple executives, including Director Jeffrey Kripitz, executed large-scale sales.
- 2024 revenue declined 15% year-over-year, with EPS dropping from $2.38 to $2.30.
- Earnings have shown a downward trend over the past five years.
Expert
In the regional banking sector, Parke Bancorp's low valuation and solid capital structure are attractive, but declining revenue and net interest margin pressures due to changing interest rate environments are concerning. While the CEO's consistent purchases send a positive signal, large-scale selling by other executives suggests internal disagreement about growth prospects.
Previous Closing Price
$18.86
+0.08(0.43%)
Average Insider Trading Data Over the Past Year
$19.54
Purchase Average Price
$20.3
Sale Average Price
$74.25K
Purchase Amount
$1.08M
Sale Amount
Transaction related to News
Trading Date | Filing Date | Insider | Title | Type | Avg. Price | Trans. Value |
|---|---|---|---|---|---|---|
04/30/2025 | 04/30/2025 | Sale | $ |
An intriguing pattern is emerging at small regional bank Parke Bancorp Inc. ($PKBK), where CEO Vito Pantilione's consistent stock purchases stand in stark contrast to significant selling by other executives and board members, drawing investor attention. According to an April 25th filing, President Pantilione purchased 1,100 shares at an average price of $18.77 for a total investment of $20,647. While this marks his first purchase of 2025, it continues his consistent buying pattern. He previously acquired 1,100 shares on November 4, 2024, and 1,600 shares on July 23, 2024. Notably, his July purchase occurred when shares traded at $19.15, his November buy came at $20.88, and his recent acquisition at the lower $18.77 level. In stark contrast, other insiders have been selling. Director Jeffrey H. Kripitz executed substantial sales in two waves - first selling 15,000 shares (approximately $342,250) across November 20-21, 2024, then divesting another 15,139 shares (roughly $305,040) between February 3-7, 2025. Additionally, Chairman Daniel J. Dalton sold 5,000 shares (about $104,790) on October 24, 2024. These divergent insider trading patterns should be evaluated alongside the stock's movement. $PKBK began trading around $15 in early June 2024, climbed to over $23 by late November 2024, and now trades near $18.75. Interestingly, the concentrated insider selling coincided with the stock's peak pricing period. Examining financial performance, Parke Bancorp reported pre-tax profit of $10.3 million and net interest income of $16.607 million for Q1 2025 (announced April 17). Net income reached $7.8 million, translating to earnings per share (EPS) of $0.65. This represents relative stability compared to full-year 2024 results, which showed revenue of $62.3 million (a 15% year-over-year decline) and EPS of $2.30 (down from $2.38 in 2023). Meanwhile, on August 2, 2024, Parke Bancorp approved a plan to repurchase up to 5% of its outstanding common stock over the following twelve months. This shareholder-friendly move, coupled with a $0.18 per share dividend (paid April 18, 2025), demonstrates management's commitment to returning value to shareholders. From a valuation perspective, $PKBK trades at compelling multiples with a P/E ratio of 7.83 and P/B ratio of 0.73, suggesting potential undervaluation. The bank maintains a strong financial position with $209.04 million in cash against $148.35 million in debt, and boasts an impressive 45.38% profit margin. Institutional ownership is notably high at approximately 48%. Amid increased market volatility from U.S.-China trade tensions in early April, which saw the Nasdaq enter bear market territory and significant declines in the S&P 500 and Dow, $PKBK has remained relatively stable. The stock has delivered a 20.14% return over the past year, substantially outperforming the S&P 500's 8.69% gain. Overall, the contrasting patterns of consistent buying by the CEO versus selling by other insiders reveal divergent perspectives on Parke Bancorp's future outlook. While stable financials and shareholder-friendly policies are positive factors, the revenue decline trend presents a potential concern. However, the CEO's recent purchase suggests he may see value at current price levels.
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