Carl M. Porto, a director at Bankwell Financial Group, Inc. (NASDAQ:BWFG), recently acquired shares in the company, according to a recent filing with the Securities and Exchange Commission. On November 25, Porto purchased 93 shares of Bankwell Financial Group's common stock at a price ranging from $34.47 to $34.51 per share, totaling approximately $3,209.
Following this transaction, Porto holds 18,733 shares indirectly through a deferred compensation plan. Additionally, he maintains various direct holdings, including restricted stocks that are scheduled to vest over the coming years. These holdings reflect his continued investment and belief in the company's prospects.
In other recent news, Bankwell Financial Group reported a rise in net income for the third quarter of 2024, reaching $1.9 million, or $0.24 per share, an increase from $1.1 million, or $0.14 per share, in the previous quarter. However, the company's earnings were impacted by an $8.2 million charge-off against a $13.7 million office loan participation. The charge-off is related to a non-performing commercial real estate loan for a Class A office park in suburban New Jersey, leading to a remaining exposure of about $5.5 million.
Bankwell Financial also reported a pre-tax, pre-provision net revenue (PPNR) of $9.0 million, a 7% decline from the previous quarter. The company's board declared a cash dividend of $0.20 per share and authorized a new share repurchase plan, allowing the company to buy back up to 250,000 shares of its outstanding common stock.
In addition to financial updates, Bankwell Financial Group has made significant amendments to its bylaws, including changing the month for the annual shareholders' meeting and adjusting the requirement for the number of inspectors of elections at these meetings. The company continues to invest in growth, with recent initiatives including a lending partnership with Lendio, the launch of Bankwell Direct, a new Small Business Administration division, and the addition of key leadership personnel. These are recent developments that reflect the company's commitment to modern and efficient corporate practices.
InvestingPro Insights
Carl M. Porto's recent purchase of Bankwell Financial Group (NASDAQ:BWFG) shares aligns with several positive trends highlighted by InvestingPro data. The stock has shown remarkable strength, with a significant 27.86% return over the last three months and an impressive 44.35% return over the past six months. This performance has brought BWFG's price to 97.27% of its 52-week high, indicating strong momentum.
InvestingPro Tips reveal that Bankwell Financial Group has maintained dividend payments for 10 consecutive years, which may be attractive to income-focused investors like Porto. The current dividend yield stands at 2.32%, providing a steady income stream alongside potential capital appreciation.
Despite these positive indicators, it's worth noting that InvestingPro Tips also point out that the company suffers from weak gross profit margins and net income is expected to drop this year. These factors may present challenges but could also offer opportunities for strategic improvements that an engaged director like Porto might be well-positioned to influence.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Bankwell Financial Group, providing deeper insights into the company's financial health and market position.
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