Karen K. Carmack, Senior Vice President at Franklin Financial Services Corp (NASDAQ:FRAF), recently acquired shares of the company. According to a regulatory filing, Carmack purchased 1 share of common stock on November 20, 2024, at a price of $32.9 per share. This transaction increased her total direct ownership to 3,079 shares. The acquisition reflects a modest investment, with the total transaction valued at approximately $32.
In other recent news, Franklin Financial Services Corp announced a significant reshuffling of its investment portfolio and the planned retirement of its President and CEO, Timothy G. Henry. The company sold approximately $46.7 million in lower-yielding U.S. Treasury debt, resulting in an estimated after-tax loss of $3.4 million. The proceeds, totaling around $42.4 million, were reinvested in higher-yielding securities, specifically U.S. Agency residential mortgage-backed securities and private-label residential mortgage-backed securities.
Henry's retirement is set to take effect on April 29, 2025, and the company's board of directors has formed a succession and search committee to identify and engage a successor. These are recent developments in the company's strategic moves, which also include maintaining its quarterly dividend, declaring a $.32 per share regular cash dividend, mirroring the previous quarter's distribution.
The company's actions are not expected to impact the stockholders' equity or the book value per share as the unrealized losses had already been reflected in the stockholders' equity. Franklin Financial Services Corp and its subsidiary, Farmers and Merchants Trust Company of Chambersburg, remain well-capitalized institutions with a strong liquidity position.
InvestingPro Insights
While Karen K. Carmack's recent purchase of Franklin Financial Services Corp (NASDAQ:FRAF) stock was modest, it aligns with some positive trends for the company. According to InvestingPro data, FRAF has shown strong performance recently, with a 14.3% price return over the last month and a substantial 28.91% return over the past six months. The stock is currently trading near its 52-week high, with its price at 99.15% of the peak.
InvestingPro Tips highlight that FRAF has maintained dividend payments for 41 consecutive years, which may be attractive to income-focused investors. The company's current dividend yield stands at 3.82%, potentially offering a steady income stream for shareholders.
However, it's worth noting that FRAF is trading at a high P/E ratio relative to its near-term earnings growth, with a PEG ratio of 6.63 for the last twelve months as of Q3 2024. This suggests that investors should carefully consider the company's valuation in relation to its growth prospects.
For a more comprehensive analysis, InvestingPro offers additional tips and insights that could provide valuable context for investors considering FRAF stock.
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