Bankwell Financial Group, Inc. (NASDAQ:BWFG) director Lawrence B. Seidman recently increased his stake in the company with a purchase of additional shares. On May 30, 2024, Seidman acquired 63 shares of Bankwell Financial Group's common stock at a price of $25.43 per share, amounting to a total transaction value of approximately $1,600.
This recent acquisition adds to Seidman's already significant holdings in the company. Following the transaction, he directly holds 12,374 shares. Additionally, through various partnerships and entities, Seidman has indirect ownership of hundreds of thousands of shares, demonstrating his substantial investment in the financial group.
The indirect holdings include 175,761 shares by Seidman and Associates, L.L.C., 126,297 shares by Seidman Investment Partnership, L.P., 166,689 shares by Seidman Investment Partnership II, L.P., 103,197 shares by LSBK06-08, L.L.C., 125,308 shares by Broad Park Investors, L.L.C., and 19,272 shares by Chewy (NYSE:CHWY) Gooey Cookies, L.P. Moreover, Seidman holds 591 shares in a deferred compensation plan and smaller direct holdings that are subject to vesting conditions as outlined in the footnotes of the SEC filing.
The footnotes reveal details about restricted stock grants from various years, with shares that have vested or are scheduled to vest over the coming years. For example, 833 shares out of a grant of 2,500 restricted shares vested immediately on December 29, 2023, with additional vesting scheduled for early 2025.
Investors often monitor insider transactions like Seidman's for insights into how executives and directors view the stock's value and prospects. While this purchase may not be large in comparison to the total number of shares held indirectly, it still reflects a continued commitment by Seidman to the company's future.
Bankwell Financial Group, Inc., headquartered in New Canaan, Connecticut, operates as the bank holding company for Bankwell Bank, providing a range of banking services to individuals and businesses.
InvestingPro Insights
Bankwell Financial Group's (NASDAQ:BWFG) recent insider activity coincides with several notable financial metrics and expert analyses that can provide investors with a broader context for understanding the company's position and potential. According to InvestingPro data, Bankwell Financial Group has a market capitalization of approximately 189.64 million USD, and it is trading at a low earnings multiple with a P/E ratio (adjusted for the last twelve months as of Q1 2024) of 6.48. This valuation may suggest that the stock is undervalued relative to its earnings, potentially offering an attractive entry point for value investors.
In light of the director's increased stake, it's worth noting that Bankwell Financial Group has maintained dividend payments for a remarkable 10 consecutive years, showcasing a commitment to shareholder returns. As of the most recent data, the dividend yield stands at 3.23%, which could be appealing to income-focused investors. Additionally, despite a decline in revenue growth by 7.9% over the last twelve months as of Q1 2024, analysts predict that the company will remain profitable this year, which aligns with the company's track record of profitability over the last twelve months.
InvestingPro Tips further reveal that while Bankwell Financial Group suffers from weak gross profit margins, its net income is expected to drop this year, which may be a point of consideration for investors evaluating the company's future earnings potential. For those looking to delve deeper into the company's financial health and future prospects, InvestingPro offers a variety of additional tips. Currently, there are 5 more InvestingPro Tips available, which can be accessed at https://www.investing.com/pro/BWFG. For those interested in a comprehensive analysis, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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