Bridgewater Bancshares Inc (NASDAQ:BWB) CEO Jerry J. Baack has sold 11,500 shares of company stock, according to a recent SEC filing. The transaction, dated September 4, 2024, amounted to a total of $162,752, with the shares being sold at a weighted average price of $14.1524. The sale prices ranged from $14.1100 to $14.2350.
Investors tracking insider transactions may note that following this sale, Baack still holds a substantial amount of Bridgewater Bancshares stock, with 1,228,514 shares remaining in his direct ownership. Additionally, Baack indirectly owns 1,000 shares as a custodian for his child, a change from previous reports where he had an indirect beneficial interest in 4,200 shares owned by an adult child.
The sale of these shares by the CEO of Bridgewater Bancshares Inc represents a notable transaction for those following the company's insider activity. Bridgewater Bancshares, based in St. Louis Park, Minnesota, operates as a state commercial bank and is known for its community-focused banking services.
While the SEC filing provides detailed information about the transaction, including the range of sale prices for the shares, it does not disclose the specific reason behind Baack's decision to sell at this time. However, such transactions are a routine part of executive compensation and asset management strategies.
The SEC filing was signed by Ben Klocke, Attorney-in-Fact, on September 5, 2024. Interested parties have the right to request additional details regarding the sale from Bridgewater Bancshares Inc, as indicated in the footnotes of the SEC document.
In other recent news, Bridgewater Bancshares announced its acquisition of First Minnetonka City Bank, a strategic move anticipated to result in a 15% earnings per share (EPS) accretion for Bridgewater by 2025. Analyst firm Piper Sandler maintained an Overweight rating on Bridgewater's stock, reflecting confidence in the bank's future profitability and EPS growth. Additionally, the firm increased its price target for Bridgewater from $13.00 to $17.00, based on a multiple of 13.5 times the firm's estimated 2025 EPS.
Bridgewater Bancshares also released its 2024 second-quarter financial results, revealing a stabilized net interest margin and a resurgence in revenue growth, a first in nearly two years. Despite subdued loan and deposit growth, the company maintained strong asset quality with no net charge-offs and low non-performing assets. This marked Bridgewater's 30th consecutive quarter of tangible book value per share growth.
In other company developments, Bridgewater Bancshares was recognized as a top workplace for the fifth consecutive year. The bank has launched a new CRM platform, is developing a new online banking solution, and has made key hires in the treasury and banking areas. According to Piper Sandler, Bridgewater Bancshares anticipates more robust payoff levels in the second half of the year and is focused on optimizing the balance sheet for longer-term growth.
InvestingPro Insights
As Bridgewater Bancshares Inc (NASDAQ:BWB) CEO Jerry J. Baack sells a portion of his shares, investors and potential investors may be looking for additional context to understand the company's current financial health and future prospects. Here are some key insights based on real-time data and InvestingPro Tips:
InvestingPro Data reveals a market capitalization of $378.52 million for Bridgewater Bancshares, with a Price/Earnings (P/E) Ratio standing at 12.6. This valuation metric suggests that the company's shares are trading at a multiple of its earnings, which is a critical indicator for investors assessing whether the stock is valued appropriately. The company's revenue for the last twelve months as of Q2 2024 is reported at $106.31 million, although it experienced a decline of 14.27% during this period. Despite this, Bridgewater Bancshares has maintained a strong operating income margin of 45.49%, indicating efficient management and profitability at the operational level.
Among the InvestingPro Tips, it's noted that two analysts have revised their earnings downwards for the upcoming period, which could be a point of concern for investors looking for growth. However, it's also highlighted that the company is expected to be profitable this year and has been profitable over the last twelve months. This information might reassure investors about the company's ability to generate profits despite facing challenges. Notably, Bridgewater Bancshares does not pay a dividend to shareholders, which could be a deciding factor for income-focused investors.
For those considering investing in Bridgewater Bancshares or monitoring their current investment, there are additional InvestingPro Tips available, providing deeper insights into the company's financials and projections. Interested readers can find a total of 7 tips on InvestingPro, which could further inform their investment decisions.
These insights and data points serve to provide a more comprehensive picture of Bridgewater Bancshares Inc's financial standing and could help investors understand the potential implications of the CEO's recent stock sale.
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