In a recent transaction, Gary Strong, a director at Oak Valley Bancorp (NASDAQ:OVLY), acquired additional shares in the company. The series of purchases, which took place over several days, amounted to a total investment of $16,800.
The transactions, all executed at a price of $24 per share, saw Strong increase his holdings in the state commercial bank by a total of 700 shares. The buying spree began on May 20, 2024, with a modest purchase of 3 shares. Subsequent acquisitions were made on May 21 and May 24, each for 1 share, and the most significant purchase occurred on May 28, when Strong bought 695 shares.
These investments have brought Strong's total ownership in Oak Valley Bancorp to 10,142 shares. The consistent buying at a uniform price point suggests a strong belief in the bank's value and future prospects by the director.
Oak Valley Bancorp, headquartered in Oakdale, California, is recognized within the industry under the Standard Industrial Classification of State Commercial Banks. These purchases by a key insider can often be interpreted as a positive signal to investors, reflecting confidence in the company's performance and governance.
Investors and market watchers frequently monitor such insider transactions as they provide insights into how the top brass at companies are acting on their own stock. It's worth noting that insider buying, such as that demonstrated by Strong, might be seen as a bullish indicator by the investment community.
InvestingPro Insights
As Oak Valley Bancorp (NASDAQ:OVLY) catches the eye with insider buying activity, key metrics from InvestingPro paint a broader financial picture of the company. Oak Valley Bancorp has a market capitalization of $196.91 million and is trading at an earnings multiple of 7.19, which is relatively low compared to industry peers, suggesting that the stock may be undervalued. This aligns with an InvestingPro Tip that highlights the company's trading at a low earnings multiple, potentially offering an attractive entry point for value investors.
On the earnings front, Oak Valley Bancorp has remained profitable over the last twelve months as of Q1 2024, with a basic EPS (Continuing Operations) reported at $3.34. The company's commitment to shareholder returns is evident from its dividend track record; it has raised its dividend for 10 consecutive years and maintained dividend payments for 11 consecutive years, as noted in two separate InvestingPro Tips.
However, the bank's revenue growth presents a mixed picture. While the last twelve months as of Q1 2024 saw a modest revenue increase of 2.66%, the quarterly comparison reveals a decline of 13.38%. Despite this, Oak Valley Bancorp's operating income margin remains strong at 46.78%, reflecting efficient management of its operations.
For investors considering the long-term potential of Oak Valley Bancorp, the company's dividend yield stands at 1.89% as of mid-2024, with a significant dividend growth of 40.62% over the last twelve months. This could be particularly appealing for income-focused investors. For further insights, there are more InvestingPro Tips available for Oak Valley Bancorp, which can be accessed with an additional 10% off a yearly or biyearly Pro and Pro+ subscription using the coupon code PRONEWS24.
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