Gregory A. Duffey, a director at Franklin Financial Services Corp (NASDAQ:FRAF), recently acquired 33 shares of the company's common stock. The purchase, made on October 30, 2024, was executed at a price of $29.90 per share, amounting to a total transaction value of $986. Following this acquisition, Duffey holds a total of 20,536 shares in the company. The transaction was reported in a filing submitted to the Securities and Exchange Commission.
In other recent news, Franklin Financial Services Corp has made significant changes to its investment portfolio. The company sold about $46.7 million in lower-yielding U.S. Treasury debt, leading to an estimated after-tax loss of $3.4 million. The proceeds from this sale, approximately $42.4 million, were reinvested in higher-yielding securities, specifically U.S. Agency residential mortgage-backed securities and private label residential mortgage-backed securities.
These new investments have an average yield of 4.62%, and the company expects to offset the loss from the sale within roughly 2.3 years. This transaction did not affect the stockholders' equity or the book value per share, as the unrealized losses had already been accounted for. Post-sale, Franklin Financial maintains its status as a well-capitalized institution with a robust liquidity position.
Moreover, Franklin Financial has upheld its quarterly dividend, declaring a $.32 per share regular cash dividend, consistent with the previous quarter. These are the latest developments in the company's financial operations.
InvestingPro Insights
Franklin Financial Services Corp (NASDAQ:FRAF) has been making waves in the financial sector, with recent insider activity drawing attention to the stock. While Director Gregory A. Duffey's recent purchase of 33 shares may seem modest, it aligns with several key metrics and trends highlighted by InvestingPro.
According to InvestingPro data, FRAF's market capitalization stands at $144.08 million, positioning it as a small-cap player in the banking industry. The company's P/E ratio of 10.18 suggests that it may be undervalued compared to its peers, potentially explaining Duffey's decision to increase his stake.
One of the most notable InvestingPro Tips is that FRAF has maintained dividend payments for an impressive 41 consecutive years. This long-standing commitment to shareholder returns is particularly relevant in light of the company's current dividend yield of 3.96%, which may be attractive to income-focused investors like Duffey.
Additionally, InvestingPro data shows that FRAF has experienced a significant return over the last week, with a 7.57% price total return. This recent performance, coupled with a year-to-date return of 6.73%, indicates positive momentum that could have influenced the director's purchase decision.
It's worth noting that while FRAF is trading at a high P/E ratio relative to its near-term earnings growth, with a PEG ratio of 6.0, the company remains profitable over the last twelve months. This profitability is underscored by an operating income margin of 24.7% for the last twelve months as of Q3 2024.
For investors seeking a deeper understanding of FRAF's financial health and prospects, InvestingPro offers additional insights. The platform provides over 10 more tips for Franklin Financial Services Corp, which could be valuable for those considering following the director's lead in acquiring shares.
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