Five Star Bancorp Director Larry Allbaugh Buys $4.3 Million in Shares. What Does This Mean for Investors?
Key Points
Larry Eugene Allbaugh acquired 96,591 shares for ~$4.3 million on July 22, 2026.
Participation was conducted through multiple entities, including the Larry and Laura Allbaugh Living Trust, the Oates Administrative Trust, and the Buzz Oates Group of Companies.
Shares were purchased at $44.00 per share, while the stock was priced at $48.37 at the July 22, 2026 market close.
Allbaugh controls more than 3.1 million shares as a trustee of trusts in his name and of various entities of Buzz Oates, a deceased California real estate developer.
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Larry Eugene Allbaugh, Director at Five Star Bancorp (NASDAQ:FSBC), reported an indirect purchase of 96,591 shares of common stock for ~$4.3 million in an SEC Form 4 filing.
Transaction summary
| Metric | Value |
|---|---|
| Transaction value | $4.3 million |
| Shares purchased (indirectly held) | 96,591 |
| Post-transaction shares (directly held) | 0 |
| Post-transaction shares (indirectly held) | ~3.12 million |
| Post-transaction value | ~$151 million |
Transaction value based on SEC Form 4 weighted average purchase price ($44.00); post-transaction value based on July 22, 2026 market close ($48.37).
Key questions
- What is the significance of this purchase relative to the director's total holdings?
The acquisition of 96,591 shares expanded Larry Eugene Allbaugh's total indirect stake, resulting in a total aggregate position of ~3.12 million shares across various trust structures. - Which specific entities were involved in this indirect acquisition?
The holdings are distributed among several entities where Allbaugh serves as a trustee or executive, including the Larry and Laura Allbaugh Living Trust, the Oates Administrative Trust, Buzz Oates LLC, the Buzz Oates Group of Companies, and four separate QSST subtrusts of various irrevocable trusts. - How does the execution price compare to the stock's valuation on the transaction date?
Allbaugh purchased the common stock at $44.00 per share, representing an entry point below the $48.37 market close on July 22, 2026, a period during which the company posted a 59% one-year return.
Company Overview
| Metric | Value |
|---|---|
| Share Price (as of market close 2026-07-23) | $47.35 |
| Market Capitalization | $1.0 billion |
| Revenue (2025) | $158.44 million |
| Net Income (2025) | $61.61 million |
Company Snapshot
- Five Star Bancorp operates as the holding company for Five Star Bank, offering a comprehensive suite of banking products and services including deposit accounts (money market accounts, checking accounts, savings accounts, and time deposits) and a diversified lending portfolio encompassing commercial and residential real estate loans.
- The company generates revenue through net interest income on its loan and deposit portfolios, non-interest income from banking services and fees, and maintains profitability through disciplined cost management and credit risk assessment across its lending operations.
- Five Star Bancorp serves small and medium-sized businesses, professionals, and individual customers throughout its primary markets, positioning itself as a community-focused regional financial institution with personalized service capabilities.
Five Star Bancorp is a regional banking institution with approximately $1 billion in market capitalization and $158.4 million in revenue in 2025, supported by a lean operational footprint of 233 employees. The company has demonstrated strong market performance with a 59% one-year share price appreciation, reflecting investor confidence in its business execution and profitability metrics. As a regional bank, Five Star Bancorp competes through localized relationship banking, specialized lending expertise in its core markets, and a diversified deposit base that supports sustainable net interest margin expansion.
What this transaction means for investors
There are many reasons an insider may sell stock. Sometimes it is because they have a bearish outlook on the company’s price, sometimes it’s because they have a large personal expense to pay, a view unrelated to their expectations for the share price.
But there is only one reason an insider buys shares: they expect the stock price to go up.
Viewed through that prism, Larry Allbaugh’s recent purchase is bullish. Studies show that insider buying predicts a higher share price in 30 days more often than not. He has been on the board since 1999, so he knows the business inside and out.
Only some of the shares are ultimately to benefit Allbaugh himself — about 507,000 are in a trust for him and his wife. The remaining shares are held in vehicles related to Buzz Oates, a successful Sacramento-area real estate developer who died last decade. Those shares are in the trusts for Oates’ heirs while some are held by the Buzz Oates Group of Companies, of which Allbaugh is CEO and a shareholder. This purchase by Allbaugh included shares for an Oates trust as well as for Allbaugh’s trust.
While his purchase is a bullish signal, the outlook for Five Star Bancorp in fiscal 2026 is as well. Wall Street analysts expect the regional bank to generate close to $198 million in revenue and $78.9 million in net income, up 25% and 36%, respectively, over 2025. That’s bullish for shares. If market expectations increase that the Federal Reserve will hike interest rates to counter oil price inflationary pressures, then financials like Five Star stand to benefit, meaning there is potential for an even better 2026.
Taken as a whole, the outlook for Five Star and Allbaugh’s purchases is a positive signal to investors.
TMF Writers add your take here...
Source: SEC Form 4 filing for FSBC | Filed: July 24, 2026
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Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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