Guaranty Bancshares Inc . (NASDAQ:NYSE:) Chairman and CEO Tyson Abston has sold a portion of his holdings in the company, according to the latest filings. The transactions, which took place over two consecutive days, involved the sale of company common stock for a total value exceeding $239,000.
The sales occurred on August 29 and August 30, with the prices per share ranging between $34.35 and $34.5. On the first day, Abston disposed of 2,500 shares at $34.35 each, followed by another 2,750 shares at $34.5. The selling continued on the second day with 1,703 shares also priced at $34.5 per share.
Following these transactions, Abston’s direct ownership in Guaranty Bancshares Inc. stands at 63,000 shares. Additionally, the CEO holds an indirect ownership of 37,180 shares through the Issuer KSOP.
The filing noted that these sales were executed for financial planning purposes. The transactions reflect a common practice among executives to diversify their investment portfolio or meet personal financial objectives.
Investors often monitor insider sales as they offer insights into executives’ perspectives on the company’s current valuation and future prospects. Guaranty Bancshares Inc., with its headquarters in Mount Pleasant, Texas, operates as a commercial bank within the state and is publicly traded under the symbol GNTY on the NASDAQ stock exchange.
In other recent news, Guaranty Bancshares has seen notable developments in its financial performance and strategic initiatives. The company’s second-quarter financial results surpassed consensus forecasts due to net interest margin (NIM) expansion, a decrease in loan balances, and a negative loan loss provision expense. As a result, Stephens increased its price target for Guaranty Bancshares to $36.00 and maintained an Overweight rating.
In addition to financial performance, the company has introduced a new executive compensation plan, known as the Executive Officer Long Term Incentive Compensation Plan, approved by the company’s board. This plan aims to provide annual bonus opportunities to selected executive officers based on the company’s performance against pre-established metrics.
Meanwhile, Piper Sandler reduced its price target from $34 to $30 based on changes in earnings estimates for 2024 and 2025. Guaranty Bancshares also reported Q1 results, indicating a slight decrease in total assets and liabilities but an increase in net interest margin and non-interest income, resulting in a net income of $6.7 million for the quarter. The bank has expressed interest in potential mergers and acquisitions, aiming to improve its net interest margin to a long-term target of 3.50%. These are among the recent developments shaping the outlook for Guaranty Bancshares.
InvestingPro Insights
Amidst the news of Guaranty Bancshares Inc.’s (NASDAQ:GNTY) CEO selling shares, investors may consider the company’s financial health and growth prospects to better understand its current valuation. According to InvestingPro data, Guaranty Bancshares has a market capitalization of $414.33 million and a Price to Earnings (P/E) ratio of 14.73, which slightly increased to 15.08 when adjusted for the last twelve months as of Q2 2024. This suggests a reasonable valuation relative to earnings.
One of the notable InvestingPro Tips for Guaranty Bancshares is that the company has raised its dividend for seven consecutive years, indicating a commitment to returning value to shareholders. Additionally, analysts have revised their earnings upwards for the upcoming period, suggesting optimism about the company’s future performance. On the other hand, the company’s gross profit margins are considered weak, which may be an area for potential improvement.
InvestingPro data also reveals that Guaranty Bancshares experienced a revenue decline of 8.83% over the last twelve months as of Q2 2024. Despite this, the company has been profitable over the same period, with an operating income margin of 28.03%. The recent strong return over the last three months, with a price total return of 21.08%, could indicate investor confidence in the company’s direction.
For those interested in dividend income, the company’s dividend yield stands at 2.76%, with the last dividend having an ex-date of June 24, 2024. The dividend growth rate over the last twelve months was 4.35%, reinforcing the company’s shareholder-friendly practices.
For more detailed analysis and additional InvestingPro Tips, investors can explore the full list of insights available on https://www.investing.com/pro/GNTY, which includes further metrics and expert commentary on Guaranty Bancshares Inc.
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