First Interstate BancSystem Inc. (NASDAQ:FIBK) President and CEO Kevin P. Riley reported a series of stock transactions, according to a recent SEC filing. Riley purchased shares worth approximately $347,718 and sold shares totaling about $217,613.
On July 31, 2024, Riley bought 6,820 shares of First Interstate BancSystem common stock at a price of $31.62 per share. The next day, he continued to increase his holdings by purchasing 3,830 shares at a weighted average price ranging from $29.91 to $29.94 per share. These transactions added to Riley's already significant stake in the company, bringing his total to 117,655 shares following the acquisitions.
Simultaneously, Riley sold 7,300 shares on August 1 at a price of $29.81 per share. This sale slightly reduced his position in the company, leaving him with 82,512 shares after the transaction.
The filing also noted several transactions coded as "G," indicating gifts of shares. These transactions, which involved no monetary exchange, included multiple gifts of 250 shares each to different custodial accounts under the Uniform Transfers to Minors Act (UTMA). After these gifts, the holdings in the custodial accounts ranged from 250 to 1,448 shares.
Investors often look to insider buying and selling as a signal of executives' confidence in the company's prospects. Riley's recent transactions show a substantial investment in the company he leads, balanced with some profit-taking.
First Interstate BancSystem Inc. is a financial services company headquartered in Billings, Montana, providing a range of banking products and services through its banking subsidiary, First Interstate Bank.
In other recent news, First Interstate Bancsystems reported an operational earnings per share (EPS) of $0.58 for the second quarter, surpassing expectations. The company's pre-provision net revenue (PPNR) grew by 6.1%, attributed to a positive shift in the core net interest margin (NIM). Analysts from Stephens have subsequently raised the price target for First Interstate Bancsystems from $32.00 to $36.00, retaining an Overweight rating.
In addition, there is news of the planned retirement of the company's President and CEO, Kevin P. Riley. The search for his successor is being led by a globally recognized executive recruiting firm. Under Riley's leadership, First Interstate transformed from a $7 billion institution to a regional entity with over $30 billion in assets.
Furthermore, the company announced a Q1 net income of $58.4 million, or $0.57 per share. Despite a decrease in net interest income and noninterest income, First Interstate Bancsystems remains optimistic about future performance, anticipating margin expansion in the second quarter. These are recent developments that investors should take into account.
InvestingPro Insights
Amidst the flurry of stock transactions by First Interstate BancSystem Inc.'s (NASDAQ:FIBK) President and CEO Kevin P. Riley, the company's financial health and investor sentiment are of keen interest to market watchers. According to recent InvestingPro data, First Interstate BancSystem has a market capitalization of $2.98 billion, reflecting its standing in the financial sector. The company's P/E ratio, which is a measure of the stock price relative to its earnings, stands at 11.79 on a last twelve months basis as of Q2 2024. This valuation metric indicates that the stock may be reasonably priced compared to its earnings.
Investors are also drawn to the company's significant dividend yield, currently at 6.33%, which is notably high and suggests a strong commitment to returning value to shareholders. This is supported by the fact that the company has maintained dividend payments for 15 consecutive years, a testament to its financial stability and reliable income generation. Additionally, the stock's recent performance shows a one-week price total return of -8.16%, indicating a notable decline in the short term, which could potentially offer a buying opportunity for value investors.
Two InvestingPro Tips that stand out for First Interstate BancSystem include the high shareholder yield, which is an attractive feature for income-focused investors, and the fact that three analysts have revised their earnings upwards for the upcoming period, hinting at potential optimism about the company's future performance. These insights, along with additional tips available on InvestingPro, can provide investors with a more comprehensive understanding of the stock's potential. In fact, there are 8 additional InvestingPro Tips available for First Interstate BancSystem Inc., which can be accessed for those looking to delve deeper into the company's prospects.
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