Guaranty Bancshares Inc . (NASDAQ:NYSE:GNTY) reported that Tyson T. Abston, the company's Chairman and CEO, sold a total of 5,610 shares of common stock on July 17, 2024, for a total transaction value of $192,871. The shares were sold at a price of $34.38 each. Following the transaction, Abston's direct holdings in the company amount to 73,000 shares.
The sale was part of a financial planning strategy, as indicated by the footnotes in the SEC filing. Additionally, Abston indirectly owns 36,923 shares through the Issuer KSOP, which stands for Key Employee Stock Ownership Plan, a type of employee benefit plan.
Guaranty Bancshares, headquartered in Mount Pleasant, Texas, is a financial institution that operates through its subsidiary, Guaranty Bank & Trust. The bank provides personalized financial services to its customers, with a focus on the Texas market.
Investors often keep a close eye on insider transactions as they can provide insights into an executive’s perspective on the company's current valuation and future prospects. The sale by Abston represents a notable transaction by a key insider, and it may be of interest to current and potential shareholders.
The reported transactions were disclosed in accordance with SEC requirements, which mandate corporate insiders to report their trading activities. The detailed filing provides transparency and allows shareholders to stay informed about significant insider trades.
In other recent news, Guaranty Bancshares has seen significant developments. The company released its second-quarter financial results, surpassing consensus forecasts due to net interest margin expansion, a decrease in loan balances, and a negative loan loss provision expense. The bank's net interest margin has shown consistent growth, with predictions pointing towards a continuation of this trend into 2025.
Stephens, a financial firm, has increased its price target for Guaranty Bancshares to $36, maintaining an Overweight rating. This adjustment was made in light of the company's strong financial performance. However, Piper Sandler has reduced its price target from $34 to $30, based on changes in earnings estimates for 2024 and 2025.
Guaranty Bancshares also introduced a new executive compensation plan, the Executive Officer Long Term Incentive Compensation Plan, approved by the company's board. This plan is designed to provide annual bonus opportunities to selected executive officers based on the company's performance against pre-established metrics. Furthermore, the company expressed interest in potential mergers and acquisitions, aiming to improve its net interest margin to a long-term target of 3.50%. These are the recent developments that highlight the strategic decisions Guaranty Bancshares is making to maintain its financial health and position itself for future growth.
InvestingPro Insights
Guaranty Bancshares Inc. (NASDAQ:GNTY) has recently been under the spotlight following insider trading activity. To provide investors with a broader context, recent data and insights from InvestingPro may be of interest. Guaranty Bancshares has demonstrated a commitment to shareholder returns, having raised its dividend for seven consecutive years. This consistency is a positive signal for investors looking for stable dividend-paying stocks.
Moreover, the company has shown robust performance with a strong return over the last month of 15.85%, and an even more impressive return over the last three months, reaching 20.31%. These figures suggest a positive short-term trend in the company’s stock price performance. Additionally, analysts have revised their earnings upwards for the upcoming period, indicating potential optimism in the company's financial outlook.
The company's fundamentals also present a mixed picture. It has a market capitalization of 399.52 million USD and trades with a price-to-earnings (P/E) ratio of 14.73, which adjusts slightly to 14.98 when considering the last twelve months as of Q2 2024. While Guaranty Bancshares has a PEG ratio of -0.58, indicating potential concerns over future earnings growth relative to its current P/E ratio, it maintains a solid price to book ratio of 1.28. Investors should also note the company's profitability over the last twelve months, supporting the notion that Guaranty Bancshares could be an attractive option for those seeking profitable investments.
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