Curtis C. Griffith, the Chairman and CEO of South Plains Financial, Inc. (NASDAQ:SPFI), a Texas-based financial institution, recently sold a significant portion of his holdings in the company. On June 13, 2024, Griffith sold a total of 7,830 shares of South Plains Financial stock, with the transactions valued at approximately $204,523.
The sales were executed in two separate transactions at varying prices. The first block of 3,000 shares was sold at a price of $26.54 per share, while the subsequent block of 4,830 shares was disposed of through multiple sales at prices ranging from $25.80 to $26.00, with a weighted average price of $25.86 per share. These transactions were part of a planned sale executed through a broker-dealer.
Following the sales, Griffith still maintains a substantial stake in the company, with direct ownership of 1,065,967 shares. Additionally, there are various holdings attributed indirectly to Griffith, including those held by his spouse and in various family trusts, such as the Curtis C. Griffith 2021 Irrevocable Trust (CCG Trust) and the Richard Thomas White 2021 Trust (RTW Trust), among others.
Investors often look to the trading activity of company insiders like Griffith for insights into their perspective on the company's future performance. While the reasons for Griffith's stock sale were not disclosed, it is not uncommon for executives to sell portions of their stock for personal financial planning purposes.
South Plains Financial, Inc. has not issued any statements regarding this recent transaction, and it remains business as usual for the institution and its clients. Shareholders and potential investors are encouraged to consider the context of these transactions when evaluating their investment decisions.
In other recent news, South Plains Financial reported a robust Q1 2024 earnings. The company demonstrated increased diluted earnings per share, rising to $0.64 from $0.61 in the previous quarter. It also reported a net interest income of $35.4 million, bolstered by higher loan interest income, and a net interest margin of 3.56%, up by 4 basis points.
Despite facing seasonal agricultural paydowns and early loan payoffs, South Plains Financial exhibited solid loan production. The company also highlighted its focus on building long-term customer relationships, with initiatives aimed at increasing fee income and non-interest bearing deposits.
Looking ahead, South Plains Financial anticipates modest upward pressure on deposit costs in the second quarter, which may slightly affect the net interest margin. However, it expects loan growth to continue, with mid-single-digit growth projected. The company's strategy includes using capital for organic growth, stock buybacks, and dividends, with some reserved for potential acquisitions. These are among the recent developments at South Plains Financial.
InvestingPro Insights
As investors digest the news of Chairman and CEO Curtis C. Griffith's recent stock sale at South Plains Financial, Inc. (NASDAQ:SPFI), several metrics and tips from InvestingPro can offer additional context to understand the company's current financial health and market position.
InvestingPro Data highlights a robust financial framework for SPFI, with a Market Cap of 433.96M USD and an attractive P/E Ratio of 6.61. This low earnings multiple suggests that the company is trading at a discount relative to near-term earnings growth, which could catch the eye of value investors. Additionally, the company has experienced a Revenue Growth of 3.42% over the last twelve months as of Q1 2024, indicating a steady increase in its financial performance.
Meanwhile, InvestingPro Tips point out that SPFI has a history of rewarding shareholders, having raised its dividend for 5 consecutive years, which may appeal to income-focused investors. Furthermore, despite some analysts revising their earnings estimates downwards for the upcoming period, the company is expected to remain profitable, with a Dividend Yield of 2.22% as a testament to its financial resilience.
For those looking to delve deeper into SPFI's financials and future prospects, InvestingPro offers additional insights. There are currently 6 more InvestingPro Tips available, which can be accessed by visiting https://www.investing.com/pro/SPFI. Investors keen on making informed decisions may consider using the exclusive coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a wealth of expert analysis and data.
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