John J. Masterson, a director at Bogota Financial Corp. (NASDAQ:BSBK), has recently increased his stake in the company by purchasing additional shares. On May 28, 2024, Masterson acquired 208 shares of common stock at a price of $6.78 each, amounting to a total investment of $1,410.
This transaction has raised Masterson's direct ownership in the company to 173,984 shares, which includes restricted stock vesting annually at a rate of 20% starting from September 2, 2022. The director's confidence in the company is evident from this purchase, reflecting a potential positive outlook on the firm's future performance.
In addition to the common stock, Masterson also holds stock options for 32,235 shares, which similarly vest at a rate of 20% per year from September 2, 2022. These derivative securities are exercisable at a price of $10.45 per share and are set to expire on September 2, 2031.
The recent purchase by Masterson could be of interest to current and potential investors as it demonstrates an insider's commitment to the company. Bogota Financial Corp., categorized under Savings Institutions, not federally chartered, continues to have its executives actively participating in the company's equity, which can be a sign of strong internal belief in the company's value proposition and strategic direction.
Investors often monitor insider buying and selling activities as an indicator of a company's health and the leadership's belief in the company's prospects. While the purchase made by Masterson is relatively modest, it nonetheless provides an additional data point for those analyzing the company's stock and considering its potential as an investment.
InvestingPro Insights
As John J. Masterson bolsters his position in Bogota Financial Corp. (NASDAQ:BSBK), investors may find it pertinent to consider certain financial metrics and analyst insights from InvestingPro. In the last twelve months as of Q1 2024, Bogota Financial Corp. has faced challenges, with a notable revenue decline of 37.95%. This contraction is reflected in its latest quarterly figures as well, where revenue dipped by 39.37%.
Despite these headwinds, there are signs of potential turnaround. Analysts following the company anticipate a return to profitability this year, which could be a catalyst for share price recovery. This is particularly relevant given that the company is currently trading near its 52-week low and has a price/book ratio of just 0.64, suggesting that the stock could be undervalued if the company's financials improve as expected.
Moreover, the company's market capitalization stands at $87.02M, with a negative price-to-earnings (P/E) ratio of -109.19, reflecting investor concerns about its past profitability. However, the PEG ratio, which accounts for growth, is closer to one at 0.98, indicating that the expected earnings growth might be in line with the stock price.
For those interested in a deeper dive, the InvestingPro platform offers additional insights and tips for Bogota Financial Corp., including an analysis of the company's gross profit margins and dividend policy. With a total of 6 InvestingPro Tips available, savvy investors can use these insights to inform their investment decisions. To explore these insights further, visit https://www.investing.com/pro/BSBK and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
Overall, the recent insider buying activity, coupled with the forward-looking analyst predictions, may offer a glimmer of optimism for Bogota Financial Corp.'s future prospects.
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