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

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 increased their holdings by more than 10%.

MVB Financial Corp. (OTCQB:MVBF) provides community banking services primarily in the Marion, Harrison, Jefferson, Berkeley, and Monongalia counties of West Virginia.

Insider buying during the last 30 days

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

NameTitleTrade DateShares PurchasedPublic OfferingCurrent OwnershipIncrease In Shares
John SchirripaExecutive OfficerDec 1659Yes13,608 shares+0.4%
David AlvarezDirectorDec 16161Yes128,936 shares+0.1%
James CavaDirectorDec 16198Yes42,314 shares+0.5%
Joseph CincinnatiDirectorDec 16211Yes40,126 shares+0.5%
Berniece CollisDirectorDec 16299Yes9,752 shares+3.2%
John EbertDirectorDec 1612,500Yes32,072 shares+63.9%
Harry DeanDirectorDec 167,812Yes99,638 shares+8.5%
Nitesh PatelDirectorDec 16280Yes73,691 shares+0.4%
Samuel WarashDirectorDec 163,682Yes25,776 shares+16.7%
Christopher PallottaDirectorDec 16310Yes54,624 shares+0.6%

There have been 25,512 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of MVB Financial's insider-trading activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
December 201325,5120
November 201300
October 201300
September 201300
August 201300
July 201300
June 201300
May 201300
April 20131,6690
March 20132,0000
February 20134,4470
January 20134,1670

There have been 37,795 shares purchased and there have been zero shares sold by insiders this year. The month of December has seen the most insider buying.

Financials

MVB Financial reported the third-quarter financial results on November 12 with the following highlights:

Revenue$6.0 million
Net income$0.8 million
Book value$21.54 per share

On December 16, MVB Financial sold 230,032 shares of common stock at $32 per share, totaling $7,361,024.

Competition

MVB Financial's competitors include United Bankshares (NASDAQ:UBSI), and WesBanco (NASDAQ:WSBC). Here is a table comparing these companies.

CompanyMVBFUBSIWSBCIndustry Average (Regional - Mid-Atlantic Banks)
Market Cap:119.37M1.61B933.18M65.33M
Employees:N/A1,5291,507202.00
Qtrly Rev Growth (yoy):1.35-0.010.140.12
Revenue:43.90M321.98M242.26M34.41M
Operating Margin:0.160.440.370.27
Net Income:4.79M87.18M61.22MN/A
EPS:1.531.732.120.86
P/E:22.5718.4315.0114.65
PEG (5 yr expected):N/A4.482.802.20
P/S:2.764.963.832.44

MVB Financial has the lowest P/S ratio among these three companies.

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

CompanyInsider buying / sharesInsider selling / shares
UBSI1470
WSBC2,50043,958

Only MVB Financial has seen intensive insider buying during the last 30 days.

Conclusion

There have been 10 different insiders buying MVB Financial and there have not been any insiders selling MVB Financial during the last 30 days. Two of these 10 insiders increased their holdings by more than 10%.

MVB Financial is trading at a P/E ratio of 22.57 and the stock has a dividend yield of 0.46%. The insiders paid $32 for their shares, which could be a good entry point for the stock based on the intensive insider buying.

Source: MVB Financial: 10 Different Insiders Have Purchased Shares This Month