Joseph Stilwell, a significant shareholder in Peoples Financial Corp (NASDAQ:PFBX), recently expanded his stake in the company. According to a recent SEC filing, Stilwell acquired 1,500 shares of Peoples Financial's common stock at a price of $18 per share, totaling $27,000. This transaction increased the number of shares owned by Stilwell Activist Investments, L.P. to 405,936 shares.
The shares are owned indirectly by Stilwell through his position as the managing member and owner of Stilwell Value LLC, the general partner of Stilwell Activist Investments, L.P. Stilwell has clarified that he disclaims beneficial ownership of these shares except to the extent of his pecuniary interest.
Stilwell and his affiliated entities continue to hold a significant position in Peoples Financial Corp, maintaining their status as a major stakeholder in the company.
InvestingPro Insights
Joseph Stilwell's recent acquisition of Peoples Financial Corp (NASDAQ:PFBX) shares aligns with several compelling financial metrics revealed by InvestingPro data. The company's remarkably low P/E ratio of 3.78 suggests that the stock may be undervalued relative to its earnings, potentially explaining Stilwell's interest in increasing his stake.
PFBX's dividend yield stands at 2.0%, with an impressive dividend growth of 50.0% over the last twelve months as of Q3 2024. This significant increase in dividend payout could be an attractive feature for value investors like Stilwell, who may see it as a sign of the company's financial health and commitment to shareholder returns.
The company's operating income margin of 28.48% for the last twelve months ending Q3 2024 indicates strong profitability, which could be another factor influencing Stilwell's decision to expand his position.
InvestingPro Tips highlight additional strengths:
1. Peoples Financial Corp has maintained dividend payments for 33 consecutive years, demonstrating a long-term commitment to shareholder returns.
2. The company's earnings per share (EPS) growth has outperformed the Banking industry average over the past year, suggesting robust financial performance relative to peers.
These insights are just a sample of the valuable information available through InvestingPro. The platform offers 12 additional tips for PFBX, providing a comprehensive analysis for investors looking to make informed decisions.
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