Anyone interested in Hope Bancorp, Inc. (NASDAQ:HOPE) should probably be aware that the Independent Director, Daisy Ha, recently divested US$375k worth of shares in the company, at an average price of US$13.83 each. However, the silver lining is that the sale only reduced their total holding by 4.4%, so we're hesitant to read anything much into it, on its own.

The Last 12 Months Of Insider Transactions At Hope Bancorp

Notably, that recent sale by Daisy Ha is the biggest insider sale of Hope Bancorp shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$13.53. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In the last year Hope Bancorp insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Hope Bancorp better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Hope Bancorp

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Hope Bancorp insiders own 4.8% of the company, worth about US$79m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Hope Bancorp Tell Us?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Hope Bancorp. While conducting our analysis, we found that Hope Bancorp has 1 warning sign and it would be unwise to ignore this.

But note: Hope Bancorp may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.