Sara Louise Faivre-Davis, a director at Federal Agricultural Mortgage Corp (NYSE:AGM), also known as Farmer Mac, has recently sold a total of 2,055 shares of the company's Class C Non-Voting Common Stock. The transactions, which took place over a span of three days, resulted in nearly $386,000 in sales, with share prices ranging from $184.55 to $190.00.
The first sale occurred on September 4, 2024, with 685 shares sold at an average price of $188.93. The following day, an additional 685 shares were sold at a flat price of $190.00. The final sale on September 6 saw another 685 shares sold, this time at an average price of $184.55. These sales were executed during an open trading window for Farmer Mac employees and directors.
Following these transactions, Faivre-Davis still holds 3,225 shares, which includes 373 unvested restricted stock units scheduled to vest on March 31, 2025, contingent upon her continued service as a director at the company.
Investors and followers of Farmer Mac can take note of these transactions as part of their assessment of the company's stock performance and insider activity. The sales were conducted in accordance with the open trading window policy, and further details on the exact prices of each share sold can be provided upon request.
The stock transactions by the director provide a snapshot of insider activity at Farmer Mac, a company that serves as a vital part of the agricultural credit markets by providing a secondary market for various loans made to borrowers in rural America.
In other recent news, Farmer Mac reported solid Q2 2024 results, demonstrating financial resilience amidst challenging market conditions. The company outlined its performance, including a notable new business volume of $1.5 billion and an increase in revenues to $89 million. Despite a loss provision for a single loan and a small loss from a loan sale, Farmer Mac's core earnings stood at $39.8 million.
The company's capital and liquidity positions remained robust, exceeding statutory requirements significantly. Farmer Mac's engagement in renewable energy has more than doubled since the previous year, and the company remains optimistic about its growth in this sector regardless of potential changes in federal policy.
These are recent developments, and the company is well-positioned to navigate economic, credit, and interest rate uncertainties. Farmer Mac is also working on its fifth FARM series securitization transaction for later in the year. Projections show minimal change in profitability and limited exposure to interest rate movements. Despite isolated credit issues and market challenges, the company's overall credit profile remains stable.
InvestingPro Insights
As investors assess the recent insider transactions at Federal Agricultural Mortgage Corp (NYSE:AGM), also known as Farmer Mac, it is worth considering some key metrics and tips from InvestingPro that could provide a broader context for the company's financial health and stock performance.
Firstly, Farmer Mac's commitment to shareholder returns is evidenced by its impressive track record of raising dividends for 12 consecutive years, with the most recent data showing a dividend yield of 2.98%. This consistency in dividend payments, maintained over 21 consecutive years, underscores the company's stable financial position and its ability to generate sufficient cash flow to reward its shareholders. Additionally, the company's dividend growth over the last twelve months was 27.27%, reflecting a robust financial performance.
Despite recent insider sales, the company's stock has shown strong historical returns, with a 16.87% one-year price total return. This suggests a sustained investor confidence in the company's growth prospects. Moreover, Farmer Mac is trading at a low P/E ratio of 9.25, which, when compared to its near-term earnings growth, indicates that the stock may be undervalued.
InvestingPro Tips highlight that analysts predict Farmer Mac will be profitable this year, a sentiment backed by the company's profitability over the last twelve months. However, it is also noted that two analysts have revised their earnings downwards for the upcoming period, which investors may want to consider when evaluating the company's future earnings potential.
For those looking to delve deeper into Farmer Mac's performance and insider activities, InvestingPro offers additional insights and tips. Currently, there are seven more InvestingPro Tips available for AGM, providing a comprehensive analysis for informed investment decisions. To discover these insights, visit the InvestingPro platform for Farmer Mac at https://www.investing.com/pro/AGM.
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