PL Capital Advisors, LLC, a significant shareholder in Evans Bancorp Inc . (NYSEAMERICAN:NYSE:EVBN), has recently made a substantial purchase of the company's stock, according to a new SEC filing. The investment firm acquired a total of 7,800 shares of Evans Bancorp at a weighted average price of $25.9595 per share, amounting to an investment of $202,484.
The reported transactions took place on June 4, 2024, with prices ranging from $25.65 to $25.97. This range indicates a slight variation in the purchase prices for the shares acquired on that day. Investors following the company may note that the reported weighted average price provides a consolidated view of the purchase, though PL Capital Advisors has offered to provide detailed information regarding the number of shares bought at each specific price within the reported range upon request.
The filing indicates that PL Capital Advisors, along with managing members Richard J. Lashley and John W. Palmer, have a combined significant influence over the shares owned by their clients. They possess sole voting and dispositive power over the common stock held by these clients. It's also noted that the clients themselves do not have immediate rights to acquire control over the stock.
The purchase by PL Capital Advisors further solidifies its position as a ten percent owner of Evans Bancorp, a financial institution headquartered in Hamburg, New York. The investment firm's actions reflect a strong commitment to the company, as owning a significant portion of the company's common stock typically signals confidence in the firm's future prospects.
Investors and market watchers often keep an eye on such filings to gauge insider sentiment and to understand how significant stakeholders are positioning themselves in relation to the companies in their portfolios. The recent acquisition by PL Capital Advisors may thus be of interest to those tracking investments in Evans Bancorp.
In other recent news, Evans Bancorp has been the subject of several developments. The financial services company recently reported a solid first quarter for the fiscal year 2024, with earnings standing at $2.3 million or $0.42 per diluted share. This performance was bolstered by resilient net interest margins and a 10% increase in total deposits, despite a decrease in non-interest income and steady total loans.
In contrast, the company's earnings report fell short of expectations, as noted by Piper Sandler. The analyst firm adjusted its outlook on Evans Bancorp shares, decreasing the price target from $30 to $27, while maintaining a neutral stance. This was due to a combination of lower net interest income, increased expenses, and a marginally higher provision, partially offset by unexpectedly high fee revenue.
These developments come amidst Evans Bancorp's strategic movements in the market and investments in its commercial banking team, which have yielded early benefits. However, the company anticipates a modest decrease in its net interest margin for the second quarter of 2024. Despite this, Evans Bancorp remains optimistic about its loan pipeline and credit quality.
InvestingPro Insights
As PL Capital Advisors increases its stake in Evans Bancorp Inc. (NYSEAMERICAN:EVBN), investors may find it useful to consider some key financial metrics and expert insights that could provide a deeper understanding of the company's current market position. According to the latest data from InvestingPro, Evans Bancorp is trading at an attractive price-to-earnings (P/E) ratio of 6.54 as of the last twelve months ending Q1 2024, which could suggest that the stock is undervalued compared to its earnings potential.
Additionally, the company boasts a price-to-book (P/B) ratio of 0.9, indicating that the market price is close to the company's book value, which can be a sign of a potentially undervalued stock. Despite a revenue decline of 3.24% over the last twelve months as of Q1 2024, Evans Bancorp has maintained a robust operating income margin of 36.13%, reflecting efficient management and strong profitability in its core operations.
InvestingPro Tips highlight that Evans Bancorp has raised its dividend for 10 consecutive years and has maintained dividend payments for 24 consecutive years, with a notable dividend yield of 5.08%. This consistent dividend history may appeal to income-focused investors, especially in a volatile market environment. Moreover, while analysts anticipate a sales decline in the current year, Evans Bancorp remains profitable over the last twelve months and is expected to remain profitable this year, according to additional insights available on InvestingPro.
For investors seeking further analysis and tips on Evans Bancorp, there are more detailed insights available, including an InvestingPro Fair Value estimate of $35.46, suggesting potential upside from the current market price. To explore these additional insights and make informed investment decisions, readers can take advantage of a special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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