Seeking Alpha
Long/short equity, insider ownership
Profile| Send Message| ()  

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%.

Prudential Bancorp, Inc. of Pennsylvania (PBIP) operates as the bank holding company for Prudential Savings Bank that provides various financial products or services in Pennsylvania.

Insider buying during the last 30 days

Here is a table of Prudential Bancorp's insider-trading activity during the last 30 days by insider.

NameTitleTrade DateShares PurchasedPublic OfferingCurrent OwnershipIncrease In Shares
Thomas VentoCEOOct 98,576Yes77,035 shares+12.5%
Francis MulcahyDirectorOct 92,000Yes18,340 shares+12.2%
A.J. FanelliDirectorOct 9500Yes14,479 shares+3.6%
Joseph CorratoEVPOct 93,311Yes37,155 shares+9.8%
Jerome BalkaDirectorOct 91,500Yes21,626 shares+7.5%

There have been 15,887 shares purchased by insiders during the last 30 days.

Financials

Prudential Bancorp reported the fiscal 2013 third-quarter, which ended June 30, financial results on July 31 with the following highlights:

Revenue$3.1 million
Net income$0.7 million
Book value$6.25 per share
Tangible book value$6.25 per share

The book value increased on October 9 due to the public offering.

Competition

Prudential Bancorp's peer group consists of the following: Alliance Bancorp, Inc. of Pennsylvania (ALLB), Malvern Bancorp (MLVF), and Polonia Bancorp (PBCP).

Here is a table comparing Prudential Bancorp to the peer group.

PBIPPeer average
Price/Earnings38.12N/A
Price/Book174.40%90.18%
Dividend yield0%0.74%

Prudential Bancorp has a higher P/B ratio than the peer group.

Here is a table of these competitors' insider-trading activities this year.

CompanyInsider buying / sharesInsider selling / shares
ALLB2503,140
MLVF00
PBCP5000

Only Prudential Bancorp has seen intensive insider buying during the last 30 days.

Conclusion

There have been five different insiders buying Prudential Bancorp and there have not been any insiders selling Prudential Bancorp during the last 30 days. Two of these five insiders increased their holdings by more than 10%. Prudential Bancorp has an insider ownership of 0.40%.

The insiders paid $10 for their shares at the public offering on October 9. I believe the stock could be a good pick below the $10 offering price based on the intensive insider buying.

Source: Insiders Are Buying Prudential Bancorp