Avidbank Executives Continue Small‑Scale Insider Selling Amid Negative Earnings Outlook

Insider Selling Continues Amidst Volatile Valuation Avidbank Holdings Inc. (AVBH) saw its Chief Legal Counsel, EVP Victor Demarco, liquidate 145 shares on February 14, 2026—just a day after a modest 0.01 % drop in the share price. The transaction, executed at $30.00 per share, reduced Demarco’s holdings to 16,722 shares. While the sale size is relatively small compared to the company’s $328 million market cap, it joins a wave of insider selling that includes the CEO, CFO, COO, and other EVP‑level executives. Together, these transactions represent a collective divestiture of 1,703 shares, reflecting a broader pattern of short‑term liquidity management rather than a systematic exit strategy.

What Does This Mean for Investors? Insider activity is often a barometer for confidence. In Avidbank’s case, the pattern of modest sell‑offs—most transactions executed at or near the prevailing market price—suggests that executives are not attempting to trigger a significant price movement. The company’s valuation remains under pressure: a negative P/E of –13.56 and a 52‑week low of $19.75 underscore earnings challenges, while a recent analyst upgrade hints at upside potential. Investors may interpret the insider sales as a normal balancing act, but the cumulative effect of multiple executives reducing exposure could signal a cautious stance amid earnings uncertainty. Watching subsequent quarterly reports and management guidance will be critical to gauge whether this selling trend persists or is a one‑off liquidity maneuver.

Demarco Victor Francesco E.: A Transaction Profile Demarco has been an active participant in Avidbank’s insider market since early 2025. His purchase activity peaked on February 13, 2026, when he bought 1,675 shares at no cost (restricted shares vesting on the prior day’s closing price of $30.00). Earlier in 2025, he executed both sizable purchases (1,530 shares on October 24) and sales (439 shares on September 20), indicating a willingness to adjust his stake in response to market conditions. The 2026 sale of 145 shares follows a pattern of incremental adjustments: he has consistently traded in the low hundreds of shares, rarely moving more than a few percent of his total holding (currently 16,867 shares post‑purchase). This disciplined approach suggests a focus on maintaining liquidity without signalling a fundamental shift in confidence about the company’s long‑term prospects.

Strategic Outlook for Avidbank Avidbank’s financials point to a company navigating a low‑earning environment while maintaining a reasonable price‑to‑book ratio of 1.19. The recent analyst upgrade and modest price rebound to $30.06 on February 16 indicate that market sentiment remains cautiously optimistic. However, the combination of negative earnings and continued insider selling could keep valuation pressure intact. For investors, the key will be to monitor whether the company can deliver stronger earnings and whether insider activity remains purely transactional or begins to reflect a more pronounced shift in executive sentiment.