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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%.

Old Line Bancshares (OLBK) operates as the bank holding company for Old Line Bank that provides commercial banking products and services to small and medium size businesses, entrepreneurs, professionals, consumers, and high net worth clients in Maryland.


(Click to enlarge)

Insider buying during the last 30 days

  • Francis Taylor purchased 2,000 shares on September 25 pursuant to a private placement. Francis Taylor currently holds 10,235 shares or 0.1% of the company. Francis Taylor serves as a director of the company. Francis Taylor increased his holdings by 24.3% in September.
  • Andre Gingles purchased 7,693 shares on September 19 pursuant to a private placement. Andre Gingles currently holds 45,687 shares or 0.5% of the company. Andre Gingles serves as a director of the company. Andre Gingles increased his holdings by 20.2% in September.
  • John Suit purchased 2,000 shares on September 13 pursuant to a private placement. John Suit currently controls 34,999 shares or 0.4% of the company. John Suit serves as a director of the company. John Suit increased his holdings by 6.1% in September.

Insider buying by calendar month

Here is a table of Old Line Bancshares' insider-trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
September 2013 11,693 0
August 2013 3,310 0
July 2013 0 0
June 2013 5,070 0
May 2013 850 4,275
April 2013 0 4,300
March 2013 13,209 4,300
February 2013 0 4,300
January 2013 0 4,300

There have been 34,132 shares purchased and there have been 21,475 shares sold by insiders this year.

Financials

Old Line Bancshares reported the second-quarter financial results on July 30 with the following highlights:

Net loss $84,285
Book value $10.93 per share
Tangible book value $9.65 per share

Competition

Old Line Bancshares' peer group consists of the following: BCB Bancorp (BCBP), Central Jersey Bancorp (CJBK), Comm Bancorp, Inc. (CCBP), Liberty Bell Bank (OTCQB:LBBB), Parke Bancorp (PKBK), Security Business Bancorp (OTC:SBBC), Sterling Banks, Inc. (STBK), and Two River Bancorp (TRCB).

Here is a table comparing Old Line Bancshares to the peer group.

OLBK Peer average
Price/Earnings 18.22 13.63
Price/Book 120% 73.88%
Dividend yield 1.22% 0.70%

Old Line Bancshares has a higher dividend yield than the peer group.

Here is a table of these competitors' insider-trading activities during the last six months.

Company Insider buying / shares Insider selling / shares
BCBP 18,049 0
PKBK 1,763 11,326
TRCB 5,846 0

Only Old Line Bancshares has seen intensive insider buying during the last 30 days.

Conclusion

There have been three different insiders buying Old Line Bancshares and there have not been any insiders selling Old Line Bancshares during the last 30 days. Two of these three insiders increased their holdings by more than 10%. Old Line Bancshares has an insider ownership of 19.90%.

There are four analyst buy ratings, zero neutral ratings, and zero sell ratings with an average price target of $15.56.

Old Line Bancshares has a book value of $10.93 per share and the stock has a dividend yield of 1.22%. I believe the stock could be a good pick below the book value of $10.93 per share based on the intensive insider buying.

Source: Insiders Are Buying Old Line Bancshares