The Bancorp: 4 Different Insiders Have Purchased Shares This Month

Jun.17.14 | About: The Bancorp, (TBBK)

Summary

4 insiders purchased The Bancorp stock within one month.

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

3 of these 4 insiders increased their holdings by more than 10%.

The Bancorp (NASDAQ:TBBK) operates as the financial holding company for The Bancorp Bank that provides various commercial and retail, and related banking products and services to small and mid-size businesses and their principals in the United States.

Click to enlarge

Insider buying during the last 30 days

Here is a table of The Bancorp's insider activity during the last 30 days.

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Hersh Kozlov Director June 13 2,000 15,500
shares
+14.8%
John Chrystal Director June 13 6,000 8,500 shares +240.0%
Michael Bradley Director June 13 5,000 25,000 shares +25.0%
Betsy Cohen CEO June 13 20,000 1,023,000 shares +2.0%
Click to enlarge

There have been 33,000 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of The Bancorp's insider activity by calendar month.

Month Insider buying / shares Insider selling / shares
June 2014 33,000 0
May 2014 0 0
April 2014 0 0
March 2014 0 0
February 2014 0 0
January 2014 1,000 0
December 2013 0 0
November 2013 10,000 0
October 2013 0 0
September 2013 0 0
August 2013 0 16,998
July 2013 0 0
June 2013 0 0
May 2013 0 12,150
April 2013 0 0
March 2013 0 0
February 2013 2,000 0
January 2013 500 0
Click to enlarge

There have been 46,500 shares purchased, and there have been 29,148 shares sold by insiders since January 2013. The month of June 2014 has seen the most insider buying.

Financials

The Bancorp reported first-quarter financial results on April 23, with the following highlights:

Revenue $53.6 million
Net income $0.3 million
Book value $9.71 per share
Tangible book value $9.52 per share
Click to enlarge

The stock plunged $3 after these results.

The Bancorp has grown its book value since 2011.

On June 10, The Bancorp announced that it had entered into an order with the Federal Deposit Insurance Corporation, which became effective on June 5, 2014. The order requires The Bancorp to take certain affirmative actions to comply with its BSA obligations.

The stock plunged another $5 after this news, and the four insiders purchased their shares after this news.

Competition

The Bancorp's competitors include Eagle Bancorp (NASDAQ:EGBN), Hampton Roads Bankshares (NASDAQ:HMPR), and Old Line Bancshares (NASDAQ:OLBK). Here is a table comparing these companies.

Company TBBK EGBN HMPR OLBK
Market Cap: 438.87M 841.75M 286.04M 181.24M
Employees: 624 387 513 228
Qtrly Rev Growth (yoy): 0.20 0.08 -0.10 0.29
Revenue: 146.82M 163.18M 88.36M 50.14M
Operating Margin: 0.24 0.48 0.16 0.36
Net Income: 18.00M 47.37M 7.30M 8.39M
EPS: 0.47 1.79 0.04 0.83
P/E: 24.82 18.10 46.67 20.27
PEG (5-yr. expected): 1.73 1.34 N/A N/A
P/S: 2.92 5.12 3.33 3.63
P/B: 1.17 2.36 1.55 1.41
Click to enlarge

The Bancorp has the lowest P/B ratio among these four companies.

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

Company Insider buying / shares Insider selling / shares
EGBN 0 1,600
HMPR 7,500 0
OLBK 15,277 0
Click to enlarge

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

Conclusion

There have been four different insiders buying The Bancorp, and there have not been any insiders selling The Bancorp during the last 30 days. Three of these four insiders increased their holdings by more than 10%. The Bancorp has an insider ownership of 5.11%.

The four insiders purchased their shares at prices ranging from $11.39 to $11.50. I believe The Bancorp could be a good pick below $11.50, based on the intensive insider buying.

Click to enlarge

(Source: Investor presentation)

Disclosure: The author has no positions in any stocks mentioned, but may initiate a long position in TBBK over the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.