MVB Financial: 10 Different Insiders Have Purchased Shares This Month

Dec.23.13 | About: MVB Financial (MVBF)

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.

Name Title Trade Date Shares Purchased Public Offering Current Ownership Increase In Shares
John Schirripa Executive Officer Dec 16 59 Yes 13,608 shares +0.4%
David Alvarez Director Dec 16 161 Yes 128,936 shares +0.1%
James Cava Director Dec 16 198 Yes 42,314 shares +0.5%
Joseph Cincinnati Director Dec 16 211 Yes 40,126 shares +0.5%
Berniece Collis Director Dec 16 299 Yes 9,752 shares +3.2%
John Ebert Director Dec 16 12,500 Yes 32,072 shares +63.9%
Harry Dean Director Dec 16 7,812 Yes 99,638 shares +8.5%
Nitesh Patel Director Dec 16 280 Yes 73,691 shares +0.4%
Samuel Warash Director Dec 16 3,682 Yes 25,776 shares +16.7%
Christopher Pallotta Director Dec 16 310 Yes 54,624 shares +0.6%
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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.

Month Insider buying / shares Insider selling / shares
December 2013 25,512 0
November 2013 0 0
October 2013 0 0
September 2013 0 0
August 2013 0 0
July 2013 0 0
June 2013 0 0
May 2013 0 0
April 2013 1,669 0
March 2013 2,000 0
February 2013 4,447 0
January 2013 4,167 0
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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
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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.

Company MVBF UBSI WSBC Industry Average (Regional - Mid-Atlantic Banks)
Market Cap: 119.37M 1.61B 933.18M 65.33M
Employees: N/A 1,529 1,507 202.00
Qtrly Rev Growth (yoy): 1.35 -0.01 0.14 0.12
Revenue: 43.90M 321.98M 242.26M 34.41M
Operating Margin: 0.16 0.44 0.37 0.27
Net Income: 4.79M 87.18M 61.22M N/A
EPS: 1.53 1.73 2.12 0.86
P/E: 22.57 18.43 15.01 14.65
PEG (5 yr expected): N/A 4.48 2.80 2.20
P/S: 2.76 4.96 3.83 2.44
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Click to enlarge

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

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

Company Insider buying / shares Insider selling / shares
UBSI 147 0
WSBC 2,500 43,958
Click to enlarge

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.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in OTCQB:MVBF over 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.