Lawrence B. Seidman, a director at Bankwell Financial Group, Inc. (NASDAQ:BWFG), recently acquired 26 shares of the company's common stock. The purchase, dated November 25, 2024, was executed at a price range between $34.47 and $34.51 per share, totaling approximately $897. Following this transaction, Seidman holds 1,723 shares indirectly through a deferred compensation plan.
Seidman also maintains direct ownership of various other holdings in Bankwell Financial, including 834 shares of restricted stock that were part of a grant issued on December 29, 2023. These shares are set to vest in stages, with the final portion scheduled for February 2025. Additional holdings include shares owned indirectly through entities such as Seidman and Associates, L.L.C., and Seidman Investment Partnership, L.P., among others.
The transactions are part of Seidman's ongoing portfolio management and reflect his continued involvement with the financial institution.
In other recent news, Bankwell Financial Group reported a rise in its third-quarter net income for 2024, reaching $1.9 million or $0.24 per share, up from $1.1 million or $0.14 per share in the previous quarter. However, the earnings were impacted by an $8.2 million charge-off against a $13.7 million office loan participation. The company also declared a cash dividend of $0.20 per share and authorized a new share repurchase plan, allowing the repurchase of up to 250,000 shares of its common stock.
In further developments, Bankwell is set to record an $8.2 million charge-off related to a non-performing commercial real estate loan. This charge-off is tied to a $13.7 million loan for a Class A office park in suburban New Jersey, where the borrower defaulted on payments, leading to foreclosure proceedings and a revaluation of the property's estimated worth to $36.2 million. Post (NYSE:POST) charge-off, Bankwell's remaining exposure is projected at about $5.5 million.
In addition, Bankwell has made significant amendments to its bylaws, modernizing the company's approach to share documentation and ensuring its governance practices are up-to-date and compliant with legal standards. These changes include altering the month for the annual shareholders' meeting from June to May and adjusting the requirement for the number of inspectors of elections at these meetings. These are recent developments that reflect the company's commitment to maintaining modern and efficient corporate practices.
InvestingPro Insights
Lawrence B. Seidman's recent acquisition of Bankwell Financial Group (NASDAQ:BWFG) shares aligns with several positive trends highlighted by InvestingPro data. The company's stock has shown remarkable strength, with a significant 7.62% return over the last week and an impressive 23.94% return over the past month. This upward momentum is further underscored by the stock trading near its 52-week high, currently at 97.27% of that peak.
InvestingPro Tips reveal that Bankwell Financial has maintained dividend payments for 10 consecutive years, demonstrating a commitment to shareholder returns. This consistency in dividend payouts, coupled with a current dividend yield of 2.32%, may be particularly appealing to income-focused investors like Seidman.
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 could explain why Seidman's recent purchase was relatively modest in size.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Bankwell Financial Group, providing a deeper understanding of the company's financial health and market position.
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