In a recent transaction on June 20th, James R. Wilkins III, Director of First National Corp (NASDAQ:FXNC), purchased 800 shares of the company's common stock at a price of $15.15 per share, totaling $12,120. This acquisition has increased Wilkins' direct ownership in the company to 297,543 shares.
The transaction was disclosed in a filing with the Securities and Exchange Commission. Along with the direct ownership, the filing also revealed various indirect holdings through entities associated with Wilkins. These holdings include 10,568 shares by Wilkins Investments LP, 9,987 shares by JRWIV Holdings LLC, 11,662 shares by GSW Holdings LLC, 7,820 shares by IBW Holdings LLC, 9,365 shares by LTW Holdings LLC, and 1,631 shares by Cara Lewin Wilkins, the director's spouse.
The reported acquisition reflects a vote of confidence from the director in the financial institution, which is classified under State Commercial Banks. First National Corp, headquartered in Strasburg, VA, continues to operate with a focus on serving its community and stakeholders.
Investors and market watchers often pay close attention to insider transactions as they can provide insights into an executive's view of the company's future prospects. With this latest purchase, stakeholders may find reassurance in the director's commitment to the bank's growth and stability.
The details of the transaction are publicly accessible through the SEC filing, providing transparency for investors and maintaining compliance with securities regulations.
In other recent news, First National Corporation and Touchstone Bankshares have announced an all-stock merger, a significant development that is projected to create the ninth-largest community bank in Virginia. The $47.0 million deal is expected to increase First National's earnings per share by 36%, with an anticipated cost-saving of around $7.2 million. The combined entity will have total assets of approximately $2.1 billion, including $1.5 billion in loans and $1.8 billion in deposits. These developments are recent and stem from a shared commitment to community service and strategic expansion, particularly in the Richmond metro area. The merger, which has received unanimous approval from both companies' boards of directors, is slated to close in the fourth quarter of 2024, subject to shareholder and regulatory approvals. Following the merger, three Touchstone directors will join the First National and First Bank (NASDAQ:FRBA) boards, with James Black assuming the role of Executive Vice President and South Region President of First Bank.
InvestingPro Insights
Following the recent insider purchase by James R. Wilkins III, First National Corp (NASDAQ:FXNC) appears to be a stock that is capturing the attention of its own directors and potentially investors. The bank, which prides itself on serving its community, is currently trading near its 52-week low, which could signal a buying opportunity for those who share the director's confidence in the company's prospects. To provide a more comprehensive picture, let's delve into some key financial metrics and InvestingPro Tips.
First National Corp's market capitalization stands at a modest $93.09 million, and the stock is trading with a price-to-earnings (P/E) ratio of 10.37, which is relatively low compared to the broader market, indicating that the stock may be undervalued. Additionally, the company has a price to book (P/B) ratio of 0.79 as of the last twelve months, suggesting that the stock is trading at a discount to the value of its assets.
Despite a revenue decline of 14.2% over the last twelve months, First National Corp has maintained a robust operating income margin of 23.66%. Moreover, the bank has a history of rewarding shareholders, having raised its dividend for 10 consecutive years and maintaining dividend payments for 11 consecutive years. The current dividend yield stands at an attractive 4.05%.
An InvestingPro Tip worth noting is that analysts predict the company will be profitable this year, which is corroborated by the fact that the company has been profitable over the last twelve months. However, it's important to consider that the company suffers from weak gross profit margins, which could impact future profitability.
For investors looking for further insights and additional InvestingPro Tips, there are 6 more tips available on InvestingPro, which can be accessed by visiting InvestingPro's FXNC page. Remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which could provide valuable information for making informed investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.