In a recent transaction, Carissa Lynn Rodeheaver, the Chairman, President & CEO of First United Corp (NASDAQ:FUNC), has increased her stake in the company through the acquisition of additional shares. The transaction, which took place on May 2, 2024, involved the purchase of 149.283 shares of common stock at a price of $22.83 per share, amounting to a total value of approximately $3,408.
The purchase was made as part of a dividend reinvestment program through a brokerage account maintained by Rodeheaver. Following the transaction, Rodeheaver's direct holdings in the company have reached a total of 41,259.0553 shares. Additionally, the filing revealed indirect ownership through family accounts, including shares owned by Rodeheaver's spouse as a custodian for their son and shares held in a 401(k) plan.
The recent acquisition reflects a continued investment by the CEO in First United Corp, a company categorized under the National Commercial Banks industry. The transaction details were disclosed in a filing with the U.S. Securities and Exchange Commission (SEC), which provides public transparency into the trading activities of corporate insiders.
Investors often monitor insider transactions as they may provide insights into the executives' confidence in the company's future performance. With this latest purchase, Rodeheaver has demonstrated a commitment to the company's growth and potential value creation for shareholders.
The stock purchase is a direct investment, aligning Rodeheaver's interests closely with those of other shareholders. The CEO's decision to increase her stake in First United Corp through the dividend reinvestment program indicates a positive outlook on the company's financial health and future prospects.
InvestingPro Insights
First United Corp (NASDAQ:FUNC) has been showing signs of a strong financial posture, according to the latest data from InvestingPro. With a market capitalization of $150.66 million and a P/E ratio that stands at 10.53, the company presents itself as a potentially attractive investment based on traditional valuation metrics. Furthermore, the P/E ratio has slightly adjusted to 10.47 over the last twelve months as of Q1 2024, indicating a consistent valuation perspective for investors.
A closer look at the company's performance reveals a notable price uptick, with a 35.11% return over the last six months, which aligns with one of the InvestingPro Tips highlighting the stock's large price increase during this period. This could be a signal of market confidence or a reaction to the company's strategic moves. Additionally, First United Corp has raised its dividend for 6 consecutive years, which is an important consideration for income-focused investors and reflects the company's commitment to returning value to shareholders. This is particularly significant given the current dividend yield of 3.53%.
For those interested in gaining more insights and tips on First United Corp, there are additional InvestingPro Tips available. For instance, analysts predict the company will be profitable this year, which is a critical factor for potential investors to consider. To access these insights and more, visit InvestingPro. Plus, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes a total of 6 InvestingPro Tips for First United Corp.
While the CEO's recent stock purchase underlines a vote of confidence in the company's trajectory, investors should also note the company's weak gross profit margins as highlighted by an InvestingPro Tip. This could be a point of concern that warrants further scrutiny when considering the overall financial health of the company.
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