Dennis Pollack, a director at Provident Bancorp, Inc. (NASDAQ:PVBC), has acquired a total of 10,000 shares of common stock in two separate transactions. The purchases, made on November 8 and November 11, were executed at prices ranging from $11.30 to $11.64 per share, amounting to a total investment of $114,700.
Following these transactions, Pollack's direct ownership in the company increased to 47,721 shares. The acquired shares include restricted stock, which is set to vest at a rate of 20% per year starting January 25, 2025. Additionally, Pollack holds stock options for 25,500 shares, which will also vest at the same annual rate beginning in early 2025.
In other recent news, Provident Bancorp, Inc. is facing potential enforcement action from the U.S. Securities and Exchange Commission (SEC) due to issues concerning cryptocurrency loan disclosures. The SEC's Boston Regional Office issued a Wells Notice indicating potential violations of federal securities laws. Provident Bancorp has expressed its intention to engage with the SEC staff to address these concerns and explore a resolution. The situation is ongoing, and the full implications of the SEC's findings are yet to be determined. Meanwhile, Provident Bancorp has also secured its top executives in new employment agreements. Joseph B. Reilly, the company's President and Chief Executive Officer, and Kenneth R. Fisher, the Executive Vice President and Chief Financial Officer, have finalized their contracts, establishing a three-year term for Mr. Reilly and a two-year term for Mr. Fisher. The agreements detail salaries, potential increases, and the circumstances under which severance payments would be made. These are some of the recent developments concerning Provident Bancorp.
InvestingPro Insights
The recent insider buying by Dennis Pollack at Provident Bancorp, Inc. (NASDAQ:PVBC) comes at an interesting time for the company. According to InvestingPro data, PVBC has seen a significant return over the last week, with a 1-week price total return of 8.77%. This short-term performance is part of a broader positive trend, as the stock has delivered a strong return of 17.03% over the last three months.
Despite these positive price movements, investors should note that PVBC is currently trading at a high earnings multiple, with a P/E ratio of 34.21. This valuation metric suggests that the market has high expectations for the company's future growth. However, an InvestingPro Tip indicates that analysts anticipate a sales decline in the current year, which could potentially impact the company's performance.
It's worth noting that while Provident Bancorp has been profitable over the last twelve months, with a revenue of $55.31 million, the company does not pay a dividend to shareholders. This information may be particularly relevant to investors considering the stock for income-generating purposes.
For those seeking a more comprehensive analysis, InvestingPro offers additional insights with 9 more tips available for PVBC, providing a deeper understanding of the company's financial health and market position.
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