Insiders Are Buying Suffolk Bancorp

Aug.12.13 | About: Suffolk Bancorp (SCNB)

The Financial Select Sector SPDR ETF (NYSEARCA:XLF) was trading as low as $5.88 in March 2009. The index is currently trading at $20.42 or 247.3% above the low made in March 2009.

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In this article, I will feature one bank that has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:

  1. The stock is purchased by three or more insiders within one month.

  2. The stock is sold by no insiders in the month of intensive purchasing.

  3. At least two purchasers increase their holdings by more than 10%.

Suffolk Bancorp (SUBK) operates as the holding company for Suffolk County National Bank, which provides domestic, retail and commercial banking services, as well as wealth management services in Suffolk County, New York.

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Insider buying by insider (last 30 days)

  • Michael Orsino purchased 1,000 shares on August 7, and currently holds 4,973 shares or less than 0.1% of the company. Michael Orsino is Executive Vice President & Chief Lending Officer.
  • James Gay purchased 1,500 shares on August 7, and currently holds 5,000 shares or less than 0.1% of the company. James Gay is Executive Vice President & Chief Credit Officer.
  • Steven Cohen purchased 1,000 shares on August 7, and currently holds 4,520 shares or less than 0.1% of the company. Steven Cohen serves as a director of the company.
  • Howard Bluver purchased 3,000 shares on August 7, and currently holds 28,000 shares or 0.2% of the company. Howard Bluver is President & Chief Executive Officer.

Insider buying by calendar month

Here is a table of Suffolk Bancorp's insider-trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
August 2013 6,758 0
July 2013 72 0
June 2013 76 0
May 2013 2,558 0
April 2013 5,482 0
March 2013 432 0
February 2013 6,759 0
January 2013 317 0
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There have been 22,454 shares purchased and there have been zero shares sold by the insiders this year.

Financials

The company reported the second-quarter financial results on July 24, with the following highlights:

Net income $2.8 million
Book value $13.74 per share
Tangible book value $13.49 per share
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Competition

Suffolk Bancorp's competitors include First of Long Island Corp. (NASDAQ:FLIC), JPMorgan Chase & Co. (NYSE:JPM) and New York Community Bancorp (NYSE:NYCB). Here is a table comparing these companies.

Company SUBK FLIC JPM NYCB Industry Average (Regional - Northeast Banks)
Market Cap: 214.91M 336.98M 206.22B 6.78B 73.43M
Employees: 373 255 254,063 3,458 185.00
Qtrly Rev Growth (yoy): -0.17 -0.18 0.15 -0.05 0.09
Revenue: 56.24M 64.43M 94.04B 1.39B 30.09M
Operating Margin: 0.00 0.35 0.37 0.57 0.28
Net Income: -1.64M 20.78M 22.90B 488.13M N/A
EPS: -0.15 2.29 5.98 1.11 0.90
P/E: N/A 16.19 9.12 13.81 14.93
PEG (5 yr expected): N/A 2.22 1.56 2.67 2.82
P/S: 3.82 5.23 2.19 4.89 2.96
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Suffolk's P/S ratio is above the industry average. First of Long Island Corp. and New York Community Bancorp have seen insider selling during the past 30 days. JPMorgan Chase & Co. has seen intensive insider selling during the past 30 days. This makes Suffolk the only bank out of these four banks that has seen insider buying during the past 30 days.

Conclusion

There have been four different insiders buying Suffolk and there have not been any insiders selling Suffolk during the past 30 days. All four of these insiders increased their holdings by more than 10%. Suffolk has an insider ownership of 1.10%. The 200-day moving average is currently at $14.93, which could be a good entry point for Suffolk.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.