JEFFERSON CITY, MO – Hawthorn Bancshares, Inc. (NASDAQ:HWBK) director Frank E. Burkhead recently purchased shares of the company's common stock, signaling continued investment in the bank holding company's future. On August 22, 2024, Burkhead acquired 100 shares at a price of $21.845 per share, totaling an investment of approximately $2,184.
This transaction has increased Burkhead's direct holdings in Hawthorn Bancshares to a total of 14,467.271 shares. Additionally, he indirectly holds 6,485.485 shares through an Individual Retirement Account (IRA). The recent purchase includes shares acquired since the last report under the company's Dividend Reinvestment Plan (DRIP), as indicated by the footnotes in the filing.
Hawthorn Bancshares, headquartered in Jefferson City, Missouri, operates as the parent company for Hawthorn Bank, providing a range of financial services to its customers. The company's stock trades on the NASDAQ under the ticker symbol HWBK.
The acquisition of shares by a company director often reflects confidence in the company's prospects and can be an indicator of the company's future performance in the eyes of its leadership. For investors, these transactions provide insight into the actions of those who are closely involved with the company's strategic direction and operations.
Investors and the market at large often monitor such transactions for hints about executive sentiment and to better understand the financial movements within the company's leadership.
In other recent news, Hawthorn Bancshares Inc., the financial holding company for Hawthorn Bank, has declared a quarterly cash dividend of $0.19 per common share. This dividend is scheduled for payment on October 1, 2024, to shareholders of record as of September 15, 2024. The company's decision to set a quarterly dividend aligns with its ongoing practice of returning value to its shareholders and mirrors its financial performance and outlook.
Hawthorn Bancshares operates Hawthorn Bank, which serves various communities across Missouri, including Kansas City, Springfield, and Columbia. It's important to note that the declaration of dividends is a common method for companies to distribute a portion of their earnings to shareholders, often seen as an indicator of the company's financial health and stability.
The company's announcement also included a standard disclaimer regarding forward-looking statements, reminding investors that actual results could differ from those projected. These statements are based on management's current expectations and are subject to risks and uncertainties. This information presents recent developments within the company.
InvestingPro Insights
The recent share acquisition by Hawthorn Bancshares, Inc. (NASDAQ:HWBK) director Frank E. Burkhead not only demonstrates his confidence in the company but aligns with several positive indicators from InvestingPro's analysis. The company has a notable record of raising its dividend, doing so for 12 consecutive years, and has maintained dividend payments for 25 consecutive years, signaling a commitment to consistent shareholder returns. This is underscored by a strong three-month price total return of 18.4%, showcasing recent market performance that may catch the eye of investors looking for growth in their portfolio.
From a valuation perspective, Hawthorn Bancshares is currently trading at a high earnings multiple with a P/E ratio of 37.07, which suggests that investors are expecting higher future earnings growth compared to the broader market. However, the InvestingPro Fair Value estimate stands at $17.42, indicating that the stock may be overvalued at its previous close price of $22.29. This could be a point of consideration for potential investors weighing the company's market performance against its intrinsic value.
Investors should also note the company's revenue growth, which experienced a quarterly increase of 11.96% as of the last twelve months ending Q2 2024, despite a decline of 17.99% in revenue growth over the same period. This mixed financial performance suggests a nuanced outlook, where recent improvements may be set against a longer-term context of revenue challenges.
For those interested in a deeper dive into Hawthorn Bancshares' financial health and market potential, there are additional InvestingPro Tips available, providing valuable insights to inform investment decisions. To explore these tips and access a comprehensive analysis, visit: https://www.investing.com/pro/HWBK.
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