Southside Bancshares Inc. (NASDAQ:) reported that its Chief Compliance Officer (CCO), Arnold T L Jr, has completed a sale of company stock valued at more than $157,000. The transactions, which occurred on August 23, 2024, involved the sale of 4,667 shares at an average price of $33.71 each.
The same day, the CCO also acquired 4,667 shares at $26.49 per share, amounting to a total of approximately $123,628. These transactions were part of the executive’s trading plan involving Southside Bancshares common stock.
Following these transactions, the CCO’s direct holdings in the company have been adjusted to 16,441 shares of common stock. Additionally, there is an indirect holding of 1,383 shares associated with the company’s Employee Stock Ownership Plan (ESOP).
Investors and market watchers often look to insider buying and selling as indicators of a company’s financial health and future prospects. Transactions by high-level executives can provide insights into their confidence in the company’s performance and direction.
Southside Bancshares Inc., based in Tyler, Texas, operates as a state commercial bank and is known for providing banking services to individuals and businesses. The company’s stock is traded under the ticker symbol SBSI on the NASDAQ exchange.
In other recent news, Texas-based Southside Bancshares has announced several key developments. The company reported its second-quarter earnings, revealing a net income of $24.7 million and earnings per share of $0.81. Alongside this, Southside Bancshares declared a regular quarterly cash dividend of $0.36 per common share.
In leadership changes, the company appointed April Pinkley as Chief Accounting Officer, Suni Davis as Chief Treasury Officer, and Anne Martinez as Chief Risk Officer. These appointments are part of the company’s recent developments.
Looking forward, Southside Bancshares has set a 5% loan growth target for 2024 and is focusing on expanding commercial and industrial lending in key metropolitan areas. The company has also implemented cost-saving measures and adjusted its securities portfolio, leading to a slight increase in the net interest margin.
While there has been a decrease in deposits, Southside Bancshares maintains strong overall credit quality. The company is also optimistic about fee income growth from wealth management and other services. These are some of the recent developments at Southside Bancshares.
InvestingPro Insights
In light of the recent insider trading activity at Southside Bancshares Inc. (NASDAQ:SBSI), investors may find it beneficial to consider some additional financial metrics and analyst insights provided by InvestingPro. The company has demonstrated a commitment to shareholder returns, having raised its dividend for 10 consecutive years and maintained dividend payments for 27 consecutive years, which signals a strong track record of returning value to investors. This is further supported by a robust dividend yield of 5.6% as of the last dividend ex-date on August 22, 2024.
The company’s performance over the last three months has been noteworthy, with a price total return of 22.75%, reflecting positive investor sentiment and a potential uptick in market confidence. Additionally, three analysts have revised their earnings estimates upwards for the upcoming period, suggesting that the company’s financial prospects may be improving.
From a valuation standpoint, Southside Bancshares Inc. holds a P/E ratio of 12.5, which aligns with its adjusted P/E ratio for the last twelve months as of Q2 2024. However, the company’s PEG ratio stands at -0.65, indicating that the market may be expecting slower growth relative to its earnings. With a price/book ratio of 1.28, the company presents a potentially attractive valuation for value-oriented investors.
For those interested in gaining a deeper understanding of Southside Bancshares Inc.’s financial health and future prospects, InvestingPro offers additional tips and insights. There are currently 6 additional InvestingPro Tips available, which can be accessed at: https://www.investing.com/pro/SBSI.
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