BATON ROUGE—Joseph Vernon Johnson, a director at Business First Bancshares, Inc. (NASDAQ:BFST), has recently sold shares in the company, according to a regulatory filing with the Securities and Exchange Commission. The transactions, executed over two days, involved the sale of a total of 15,500 shares of common stock.
On October 29, Johnson sold 3,980 shares at a weighted average price of $26.63, in a series of trades executed at prices ranging from $26.51 to $26.80. The following day, October 30, he sold an additional 11,520 shares at a weighted average price of $27.16, with transaction prices ranging from $26.75 to $27.46. The total value of these sales amounted to approximately $418,870.
Following these transactions, Johnson holds 191,557 shares of Business First Bancshares, which includes 1,149 shares of restricted stock granted earlier this year that are set to vest in April 2025.
In other recent news, Business First Bancshares demonstrated significant growth in the third quarter of 2024. The company reported a GAAP net income of $16.5 million and a core net income of $17.2 million, with noted improvements in operating leverage and successful expansion in Dallas and Houston. The increase in income was largely attributed to growth in commercial real estate and construction loans.
The Oakwood acquisition is anticipated to continue contributing to net loan growth, with expectations to achieve a core margin around 3.50% by the second quarter of 2025. In terms of figures, total loans and deposits grew by $57.3 million and $77.3 million respectively, and the Oakwood transaction is projected to contribute around $690 million in net loans.
Despite a slight increase in non-performing loans due to one SBA loan, non-interest income showed strength, particularly from swap fees. As part of recent developments, executives anticipate continued net interest margin growth and a quarterly accretion of $700,000 to $800,000 from the integration of Oakwood. The company is also focusing on organic growth within current markets while being open to strategic mergers and acquisitions.
InvestingPro Insights
The recent stock sale by director Joseph Vernon Johnson comes amid a period of strong performance for Business First Bancshares (NASDAQ:BFST). According to InvestingPro data, the company has seen a significant 36.15% price total return over the past six months, indicating robust investor confidence. This aligns with an InvestingPro Tip highlighting that BFST has experienced a large price uptick over the last six months.
Despite the director's sale, there are positive signals for the company. An InvestingPro Tip notes that four analysts have revised their earnings upwards for the upcoming period, suggesting optimistic expectations for BFST's financial performance. Additionally, the company boasts a high shareholder yield and has raised its dividend for seven consecutive years, demonstrating a commitment to returning value to shareholders.
From a valuation perspective, BFST's P/E ratio stands at 11.22, which may indicate the stock is reasonably priced relative to earnings. The company's dividend yield of 2.06% and a dividend growth rate of 16.67% in the last twelve months as of Q3 2024 further underscore its appeal to income-focused investors.
It's worth noting that InvestingPro offers 8 additional tips for BFST, providing investors with a more comprehensive analysis of the company's prospects and potential risks.
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