In a recent transaction, Robert A. Abel, a director of Mid Penn Bancorp Inc (NASDAQ:MPB), has purchased additional shares in the company. The transaction, which took place on June 28, 2024, involved the acquisition of 22 shares of Mid Penn Bancorp's common stock at a price of $21.95 per share, amounting to a total investment of $482.
This purchase was made through the Director Stock Purchase Plan, as indicated in the footnotes of the filing. Following this transaction, Abel's direct ownership in the company includes 6,270.513 shares. Additionally, the filing reveals indirect ownership through the Robert and Julie Abel Living Trust, which holds 24,531.646 shares of Mid Penn Bancorp common stock.
Abel also holds 999 shares of Mid Penn Bancorp, Inc. Common Restricted Stock, which are set to vest completely on the first anniversary of the date of grant. These shares are part of an incentive plan and are separate from the recently purchased shares.
Investors often monitor insider transactions such as these for insights into the confidence levels of a company's directors and executives regarding the company's current valuation and future prospects. The recent activity by Abel may be seen as a positive sign by some investors, as it reflects a commitment to the company by one of its directors.
In other recent news, Mid Penn Bancorp has reported a rise in earnings for Q1 2024, with a net income of $12.1 million, surpassing analyst consensus estimates of $0.61 per share. The bank also experienced substantial loan growth, with a $64.7 million increase for the quarter, marking a 6.1% annualized growth rate. Additionally, deposit growth continued with a $32.9 million increase, or 3.0% annualized, for the first quarter of 2024.
Piper Sandler, following a series of investor meetings, maintains its Overweight rating on Mid Penn Bancorp, along with a $25.00 price target. Despite the bank's year-to-date underperformance compared to its peers, Piper Sandler believes in the bank's solid credit profile and commitment to controlling expenses.
These are recent developments, reflecting a positive outlook on Mid Penn Bancorp's financial health and future performance, despite its current market underperformance. The bank's tangible book value per common share increased to $25.23 at the end of the quarter, up from previous years. The Board of Directors declared a cash dividend of $0.20 per share, payable to shareholders of record as of May 2024.
InvestingPro Insights
In light of the recent insider purchase by Robert A. Abel at Mid Penn Bancorp Inc (NASDAQ:MPB), investors may find additional context from InvestingPro data and tips useful for assessing the company's financial health and future prospects.
InvestingPro data shows Mid Penn Bancorp with a market capitalization of $366.66 million and a Price/Earnings (P/E) ratio of 9.46, which adjusted for the last twelve months as of Q1 2024, stands at a lower 8.1. This suggests a more attractive valuation compared to the unadjusted P/E. Additionally, the company boasts an impressive Operating Income Margin of 35.56% for the same period, indicating efficient management and profitability.
Moreover, Mid Penn Bancorp has a track record of maintaining dividend payments for 14 consecutive years, with a current dividend yield of 3.67%. This consistency in paying dividends could be particularly appealing to income-focused investors.
Two InvestingPro Tips that may be particularly relevant in light of Abel's purchase are as follows:
1. Analysts predict the company will be profitable this year, which aligns with Abel's show of confidence in the company's valuation and future.
2. The company has experienced a significant return over the last week, with a 1 Week Price Total Return of 7.82%, potentially indicating positive market sentiment.
For investors interested in a deeper analysis, there are additional InvestingPro Tips available at InvestingPro. By using the coupon code PRONEWS24, readers can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, offering more comprehensive insights into Mid Penn Bancorp and other investment opportunities.
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