Jonathan Logan, an EVP and CFO at William Penn Bancorporation (WMPN), recently bought 1,000 shares. The buy increased his stake by nearly 13 percent, and came to a total cost of over $12,500.
The buy comes a day after the company COO bought 1,000 shares, and the company President and CEO bought 6,720 shares. All told, company insiders have been active buyers since last March, with no insider sales over the past three years.
Insiders own 8.2 percent of the regional bank, which operates 12 branches in Pennsylvania and New Jersey.
Shares are down 67 percent over the past year, and the drop in shares has led to the stock trading at a discount to its book value, a reasonable sign that the bank is undervalued.
Action to take: Investors can buy shares here and lock in a dividend of nearly 1 percent at today’s prices. With the bank trading under book value, there’s also the possibility for a jump higher on a buyout offer in shares, which for smaller banks tends to occur at 1.2 times book value or higher.
Traders have no options here, but as bank stocks can likely benefit operationally even as interest rates start to rise, there could be more upside in this or other regional financial bank stocks in the months ahead.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.