On June 6, 2023, Senior Executive Vice President and Chief Risk Officer Thomas Stenger sold 3,418 shares of Hope Bancorp Inc (HOPE, Financial). Thomas Stenger has been with Hope Bancorp Inc since 2016, and he has over 30 years of experience in the banking industry, specializing in risk management, credit administration, and regulatory compliance.
Hope Bancorp Inc is a regional bank holding company that provides various banking services to small and medium-sized businesses, as well as individuals. The company operates through its subsidiary, Bank of Hope, which offers commercial banking services, including commercial loans and lines of credit, trade finance, and treasury management services.
Insider Trading Analysis
Over the past year, Thomas Stenger has sold a total of 8,000 shares and purchased 0 shares. The insider transaction history for Hope Bancorp Inc shows that there have been 2 insider buys in total over the past year. Meanwhile, there have been 3 insider sells over the same timeframe.
It is essential to analyze insider buy/sell transactions and their relationship with the stock price. Insider selling can sometimes indicate that the stock is overvalued or that the insiders believe the stock price will decline in the future. However, it is also possible that insiders are selling shares for personal reasons, such as diversifying their investment portfolio or meeting financial obligations.
The insider trend image above shows that the number of insider sells has been relatively stable over the past year, with a slight increase in recent months. This could suggest that insiders are becoming more cautious about the stock's future performance. However, it is important to note that the overall trend is still relatively balanced, with both insider buys and sells occurring over the past year.
Valuation
Shares of Hope Bancorp Inc were trading for $9.2 apiece on the day of Thomas Stenger's recent sell. This gives the stock a market cap of $1.082 billion.
The price-earnings ratio is 5.50, which is lower than the industry median of 8.25 and lower than the company's historical median price-earnings ratio.
With a price of $9.2 and a GuruFocus Value of $15.82, Hope Bancorp Inc has a price-to-GF-Value ratio of 0.58. This means the stock is Significantly Undervalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus that is calculated based on the following three factors:
- Historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at.
- A GuruFocus adjustment factor based on the company's past returns and growth.
- Future estimates of business performance from Morningstar analysts.
In conclusion, the recent insider sell by Thomas Stenger may raise some concerns about the future performance of Hope Bancorp Inc's stock. However, it is essential to consider the overall insider trading trends and the stock's current valuation. Based on the GF Value, the stock appears to be significantly undervalued, which could present a buying opportunity for long-term investors. As always, it is crucial to conduct thorough research and consider various factors before making any investment decisions.
