ONTARIO, CA – An executive at CVB Financial Corp (NASDAQ:CVBF) recently sold a significant number of shares in the company. Kimberly H. Sheehy, who serves on the board of directors, sold 2,961 shares of common stock on July 2, 2024, at a weighted average price of $17.1438 per share, resulting in a total transaction amount of approximately $50,762.
The sale occurred at prices ranging from $17.1400 to $17.1501, as detailed in a footnote to the transaction. This range indicates a slight variation in the price per share at which the stock was sold. Following the sale, Sheehy's remaining ownership in the company stands at 13,156 shares of common stock.
It's worth noting that a footnote in the filing indicated that the sale transaction was made in error by the insider's broker and without authorization from the insider. This information might be relevant for investors following the insider trading activity within the company.
CVB Financial Corp, a state commercial bank headquartered in Ontario, California, has not issued any official statement regarding this transaction. The company continues its operations as usual, with the stock being publicly traded on the NASDAQ under the ticker symbol CVBF.
In other recent news, CVB Financial has been in the spotlight following its second-quarter results and a price target increase by Stephens, a financial services firm. CVB Financial reported an operating earnings per share (EPS) of $0.35, surpassing both Stephens' estimate of $0.33 and the consensus estimate of $0.34, and net earnings of $50 million, or $0.36 per share. The company also declared a $0.20 per share dividend.
Stephens raised the price target for CVB Financial shares to $21 from the previous target of $19, maintaining an Equal Weight rating on the stock. This adjustment followed the bank's earnings results and its potential for margin improvement in the second half of 2024 and into 2025, driven by strategic securities repositioning and proceeds from sale leaseback transactions.
Recent developments suggest that CVB Financial may show increased interest in share buybacks and potential merger and acquisition opportunities. The company's pipeline commentary was somewhat positive, with an expectation to return to positive loan growth. Despite a slight decrease in total loans and a declining net interest margin, CVB remains confident about its growth potential, particularly in the C&I loans pipeline.
Analysts anticipate a slight decline in real GDP and an unemployment rate averaging 6% for 2025. Despite these predictions, CVB aims to grow earnings per share and improve return on assets. The company is actively managing its capital and considering options such as mergers and acquisitions, buybacks, and sale leasebacks.
InvestingPro Insights
In light of the recent insider sale at CVB Financial Corp (NASDAQ:CVBF), which was reported as unauthorized, investors might be looking for additional context to understand the company's financial health and market performance. According to data from InvestingPro, CVB Financial Corp currently holds a market capitalization of around $2.35 billion, with a price-to-earnings (P/E) ratio of 11.54. This valuation metric suggests that the stock is trading at a level consistent with its earnings.
Despite the recent sale, CVBF has demonstrated a commitment to returning value to shareholders, maintaining dividend payments for 36 consecutive years. The dividend yield as of the latest data stands at an attractive 4.71%, with the last dividend having an ex-date of July 11, 2024. This could be a sign of stability and a potentially appealing factor for income-seeking investors.
However, there are some cautionary notes. InvestingPro Tips indicate that analysts have recently revised their earnings expectations downwards for the upcoming period. Additionally, the company has experienced a notable price drop over the last week, with a 1-week total return of -11.28%. This could reflect market reactions to the unauthorized sale or other external factors. It's also worth noting that while analysts predict the company will be profitable this year, net income is expected to decline.
For investors seeking a deeper dive into CVBF's performance and prospects, there are over 6 additional InvestingPro Tips available, providing a more comprehensive analysis. These insights, combined with the real-time metrics from InvestingPro, can help investors make more informed decisions regarding their interest in CVB Financial Corp.
To explore these insights further, investors can visit InvestingPro at https://www.investing.com/pro/CVBF for additional expert analysis and tips.
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