In a recent transaction, MetroCity Bankshares , Inc. (NASDAQ:MCBS) director Don Leung sold a total of 26,266 shares of the company's common stock, netting over $748,000. The sales occurred on two separate dates, with the first batch of 61 shares disposed of at a price of $28.5 per share on July 12, 2024, followed by a larger sale of 26,205 shares at the same price on July 15, 2024.
After these transactions, the director still holds a substantial amount of MetroCity Bankshares' stock, with 1,055,201 shares remaining in his possession. It's noteworthy that the sales were executed in accordance with a pre-established trading plan, known as a Rule 10b5-1 plan, which was adopted by Leung on May 9, 2023. This plan allows company insiders to set up a predetermined schedule to sell stocks at a time when they are not in possession of material non-public information, thus helping to avoid potential allegations of insider trading.
Investors often monitor insider sales as they may provide insights into an insider’s perspective on the company's current valuation or future prospects. However, it's important to consider that insider sales can occur for various reasons that may not necessarily reflect a negative outlook on the company, such as personal financial management, estate planning, or diversification of assets.
MetroCity Bankshares, headquartered in Doraville, Georgia, operates as a state commercial bank and is a part of the financial sector. The company's shares are traded on the NASDAQ under the ticker symbol MCBS.
In other recent news, MetroCity Bankshares Inc. saw its price target raised from $27.00 to $28.00 by Keefe, Bruyette & Woods (KBW), maintaining its Market Perform rating. This adjustment comes in response to the bank's positive adaptation to an extended period of elevated interest rates, which has brought about significant benefits from the inclusion of swaps in its operations. The bank's current financial health was brought to the fore, highlighting its high profitability with an expected return on tangible common equity (ROTCE) of 15% for the years 2024 and 2025. MetroCity Bankshares also boasts strong capital ratios, further emphasizing its financial stability. The analyst at KBW cited the bank's superior profitability, which bolsters its higher valuation relative to its peers, as the rationale behind the price target increase. The revised 2024 earnings estimates and the new price target reflect the bank's advantageous position in the current economic landscape. The price target upgrade to $28.00 is founded on the bank's ability to capitalize on higher interest rates, its robust financial metrics, and its favorable standing compared to its market peers.
InvestingPro Insights
As MetroCity Bankshares, Inc. (NASDAQ:MCBS) experiences insider trading activity, it's crucial for investors to stay informed about the company's financial health and market performance. Recent data from InvestingPro reveals several key metrics that could be of interest. MetroCity Bankshares maintains a market capitalization of approximately $718.1 million, with a trailing P/E ratio of 14.26, suggesting a potentially reasonable valuation relative to earnings.
The company's dividend yield stands at 2.81%, which is a noteworthy aspect for income-focused investors, especially considering that MetroCity Bankshares has raised its dividend for the past 3 consecutive years and maintained dividend payments for 9 consecutive years. This consistent return to shareholders is complemented by a significant return over the last week, with a 1 Week Price Total Return of 8.78%, and a robust 1 Year Price Total Return of 56.68%, indicating strong performance over the short and long term.
On the horizon, MetroCity Bankshares is expected to be profitable this year, as suggested by analysts, a sentiment supported by a profitable performance over the last twelve months. For investors seeking more comprehensive insights, there are additional InvestingPro Tips available, which can be accessed through the platform. For example, MetroCity Bankshares is currently trading near its 52-week high, at 99.69% of that peak, reflecting investor confidence and market momentum.
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