Boston Private Financial Holdings (BPFH: US)
12-month performance: -41%
Insider activity: Bullish
Buying pattern: Large purchases from CEO
Recent news: Issued Q1 results
Boston Private Financial Holdings is a US-based bank holding company. Through its subsidiary, Boston Private, it provides private banking and wealth management services to high net worth individuals, families, businesses, and institutions. The company is listed on the NASDAQ Global Select Market and currently has a market capitalisation of $559 million.
Boston Private Financial Holdings shares have been hit hard in the recent equity market volatility. Back in mid-February, before the coronavirus impacted investor sentiment, the small-cap stock was trading at around the $12 level. However, today, it can be purchased for under $7. This hit to the share price has left BPFH looking undervalued. The stock’s P/E ratio is now just 7, and the consensus broker price target of $8.83 is roughly 30% higher than the share price today.
Looking at insider transaction activity, we think it’s interesting that CEO Anthony DeChellis has purchased a large amount of BPFH shares recently. On 4 May, the insider bought 37,755 shares at a price of $7.12 per share, and then on 5 May, he bought another 61,745 shares at a price of $7.40. Combined, these purchases – which boosted his holding by nearly 60% – cost the insider around $730,000. DeChellis has over 30 years’ experience in the financial services industry and was previously CEO of Credit Suisse Private Banking - Americas. He is likely to have a good understanding of the private banking industry. Given his industry experience, we see his recent purchases as a bullish signal.