In a recent transaction, Hilltop Holdings Inc . (NYSE:HTH) Director Hill A. Feinberg has sold a portion of his holdings in the company. The transaction, which took place on June 10, 2024, involved the sale of 3,776 shares at a price of $29.91 per share, totaling $112,940.
The sale was disclosed in a regulatory filing with the Securities and Exchange Commission (SEC). Following this transaction, the director's indirectly held shares, attributed to his wife, have been updated to reflect a remaining ownership of 10,000 shares. It is important to note that Feinberg has stated that the filing should not be considered an admission that he is, for the purposes of Section 16 of the Securities Exchange Act of 1934 or otherwise, the beneficial owner of these shares. He disclaims beneficial ownership of these shares, except to the extent of his pecuniary interest.
Hilltop Holdings Inc., based in Dallas, Texas, operates as a financial holding company and through its subsidiaries, provides banking and financial services. The company's stock is traded under the ticker symbol HTH on the New York Stock Exchange.
Investors and market watchers often look to insider transactions as a gauge of confidence in the company's prospects. While the reasons behind a director's decision to sell shares can vary, the transactions are closely monitored for insights into the company's performance and potential future direction.
The SEC filing provided a snapshot of Feinberg's current holdings in Hilltop Holdings, with the reported direct holdings standing at 562,136 shares. This transaction and the updated ownership information offer a glimpse into the trading activities of one of the company's directors, which can be a valuable piece of information for current and potential investors.
In other recent news, Hilltop Holdings Inc. has reported mixed first-quarter earnings for 2024, with a net income of $28 million or $0.42 per diluted share. Despite economic pressures, PlainsCapital Bank, part of Hilltop's operations, demonstrated resilience with a pre-tax income of $50 million, while Hilltop Securities contributed a pre-tax income of $19 million. However, PrimeLending experienced a pre-tax loss of $16.5 million. Amid these developments, the company maintained strong capital levels with a common equity Tier 1 capital ratio of 19.7% and returned $21 million to shareholders.
In addition, Hilltop announced a leadership transition at PlainsCapital Bank. Looking ahead, the company expects deposit competition to remain intense throughout 2024, with an anticipated increase in interest-bearing deposit costs. Despite a decrease in mortgage-related income and fees, non-interest income stands at $182 million. The company's liquidity sources are approximately $7.4 billion, above uninsured and uncollateralized deposits. Furthermore, despite the pressure on net interest margin, an improvement is expected in the fourth quarter.
InvestingPro Insights
As Hilltop Holdings Inc. (NYSE:HTH) navigates the financial market, the recent insider sale by Director Hill A. Feinberg may draw attention to the company's current financial health and future outlook. With a market capitalization of approximately $1.97 billion and a price-to-earnings (P/E) ratio standing at 17.53, Hilltop Holdings presents a mixed picture to investors. The adjusted P/E ratio has remained fairly stable at 17.48, indicating consistent valuation over the last twelve months as of Q1 2024.
InvestingPro data also shows a dividend yield of 2.26%, which can be attractive to income-focused investors, particularly in light of the company's track record of raising its dividend for 8 consecutive years, as noted in one of the InvestingPro Tips. This consistency in dividend payments is further reinforced by another InvestingPro Tip highlighting that Hilltop Holdings has maintained dividend payments for 9 consecutive years. Such a history of dividend payments could signal a commitment to returning value to shareholders, even amidst challenges such as weak gross profit margins and the expectation of a net income drop this year.
While revenue growth has experienced a slight decline of -5.21% over the last twelve months as of Q1 2024, the quarterly figure shows a modest increase of 2.21%. This juxtaposition of revenue metrics suggests that while the company may be facing some headwinds, there are areas of resilience in its financial performance. Additionally, analysts predict the company will be profitable this year, with profitability over the last twelve months, which could offer some reassurance to investors.
For those considering an investment in Hilltop Holdings, the InvestingPro platform provides an array of additional insights. There are more InvestingPro Tips available, which can be accessed at https://www.investing.com/pro/HTH. To deepen your analysis and make more informed decisions, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With these tools at your disposal, you can better understand the nuances of Hilltop Holdings' financial landscape and potential investment opportunities.
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