In a recent transaction, Jason Darby, the Senior Executive Vice President and CFO of Amalgamated Financial Corp. (NASDAQ:AMAL), sold 4,000 shares of company stock, resulting in a total sale value of $108,074. The shares were sold at a weighted average price of $27.0186, with individual transactions ranging from $27.00 to $27.11.
The sale was executed in accordance with a pre-arranged 10b5-1 trading plan, which Darby had adopted on December 14, 2023. This plan allows company insiders to establish a predetermined schedule to sell stocks at a time when they are not in possession of material non-public information, thus providing them a defense against potential accusations of insider trading.
Following the sale, Darby still owns 56,470 shares in the company, which includes 624 shares acquired through the Employee Stock Purchase Program in the first quarter of 2024. The total value of Darby's remaining shares in Amalgamated Financial is not disclosed in the filing, but it is a significant stake in the company.
Investors often monitor insider transactions as they can provide insights into an executive's confidence in the company's future performance. However, the adoption of a 10b5-1 trading plan indicates that this sale was planned ahead of time and may not be directly related to Darby's outlook on the company's future.
Amalgamated Financial Corp., headquartered in New York, is a state commercial bank known for providing financial services. The company has not yet provided any comments on this transaction.
In other recent news, Amalgamated Bank (NASDAQ:AMAL) has been the focus of various analyst adjustments and financial developments. Following a strong first quarter in 2024, the bank saw its stock price target increased by JPMorgan (NYSE:JPM), citing robust earnings per share and significant deposit growth. This growth was particularly marked by an influx of political deposits, which reached approximately $1.5 billion in April.
In contrast, Keefe, Bruyette & Woods maintained an Outperform rating for Amalgamated Bank but reduced the price target due to industry-wide concerns. Piper Sandler also demonstrated confidence in the bank, raising the price target while maintaining an Overweight rating. Both firms acknowledged potential earnings headwinds but expressed faith in the bank's ability to navigate these effectively.
Furthermore, Amalgamated Bank's Board of Directors approved a 50% increase in its quarterly dividend, reflecting the company's strong financial performance and commitment to delivering value to its shareholders. These recent developments underscore the dynamic nature of the financial sector and the ongoing strategic adjustments made by Amalgamated Bank in response to varying market conditions.
InvestingPro Insights
As investors dissect the recent insider trading activity at Amalgamated Financial Corp. (NASDAQ:AMAL), a deeper dive into the company's financials and performance metrics can offer additional insights. According to InvestingPro data, Amalgamated Financial Corp. boasts a market capitalization of $822.93M, with a P/E ratio sitting at 8.81. This valuation comes as the company shows strong performance, with a revenue growth of 8.22% over the last twelve months as of Q1 2024. Additionally, the firm's stock has been trading near its 52-week high, at 97.48% of the peak price, reflecting investor optimism in its recent performance.
InvestingPro Tips suggest that while the company has been trading at a high P/E ratio relative to near-term earnings growth, analysts are predicting profitability for the current year. This is corroborated by the company's robust operating income margin of 48.69% for the last twelve months as of Q1 2024, which is a testament to its efficient operations. Furthermore, the company has demonstrated a strong return over the last three months, with a price total return of 19.11%.
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