Southside Bancshares Inc. (NASDAQ:SBSI) Chief Risk Officer Davis Suni M has reported a significant transaction involving the company's common stock. According to a recent SEC filing, Suni sold a total of 2,220 shares at a price of $36 per share, amounting to $79,920.
Additionally, Suni exercised options to acquire 2,220 shares at a price of $26.49 per share, which were subsequently sold. Following these transactions, Suni holds 9,202 shares directly. The transactions were executed on November 6, 2024.
In other recent news, Southside Bancshares reported mixed results for its third quarter 2024 earnings. The company's net income came in at $20.5 million and earnings per share (EPS) were at $0.68, indicating a decline from the previous quarter. However, the firm saw an increase in net interest income by $1.86 million, with the net interest margin rising to 2.95%.
In terms of future developments, Southside Bancshares has adjusted its loan growth target for 2024 from 5% to 3%, citing expected payoffs. They also announced plans for new hires and potential acquisitions, particularly targeting banks with assets between $1.2 billion and $4 billion along the I-35 corridor.
The company has also made changes in its investment portfolio, selling $28 million in AFS municipal securities at a $1.9 million loss and reinvesting in higher-yielding securities. Despite a slight decrease in loan balances to $4.58 billion, nonperforming assets remained low at 0.09% of total assets, indicating strong asset quality. These are among the recent developments at Southside Bancshares.
InvestingPro Insights
Southside Bancshares Inc. (NASDAQ:SBSI) has recently seen some interesting insider activity, with Chief Risk Officer Davis Suni M's sale of shares. To provide additional context to this transaction, let's look at some key financial metrics and insights from InvestingPro.
As of the latest data, Southside Bancshares has a market capitalization of $1.09 billion, with a P/E ratio of 13.02. This relatively low P/E ratio suggests that the stock may be undervalued compared to its earnings. The company's dividend yield stands at an attractive 4.86%, which could be appealing to income-focused investors.
InvestingPro Tips highlight that Southside Bancshares has raised its dividend for 10 consecutive years and has maintained dividend payments for 27 consecutive years. This consistent dividend history demonstrates the company's commitment to returning value to shareholders, which may be reassuring to investors in light of the recent insider sale.
The stock has shown strong performance recently, with a 14.88% return over the past week and a 38.46% return over the last six months. This positive momentum could indicate investor confidence in the company's prospects, despite the insider sale.
It's worth noting that InvestingPro offers 10 additional tips for Southside Bancshares, providing a more comprehensive analysis for investors looking to delve deeper into the company's financials and market position.
While the insider sale might raise some questions, the company's solid dividend history and recent stock performance suggest that Southside Bancshares remains an interesting prospect for investors. As always, it's important to consider a wide range of factors when making investment decisions.
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