WILLIAMSPORT, Pa. - Penns Woods Bancorp, Inc. (NASDAQ: PWOD), the parent company of Jersey Shore State Bank and Luzerne Bank, has announced a new stock repurchase program. The Board of Directors has authorized the repurchase of up to 5% of the company's outstanding shares over a one-year period, ending May 31, 2025.
This new repurchase plan allows for the buyback of up to 376,000 shares, replacing the existing plan set to expire on May 31, 2024. The company indicated that shares could be repurchased on the open market, in block trades, or through privately negotiated transactions, depending on market conditions as assessed by management.
The program does not commit Penns Woods Bancorp to repurchase any specific number of shares. Furthermore, the timing and amount of share repurchases under this program are not guaranteed. The company reserves the right to suspend, modify, or discontinue the repurchase plan at any time for any reason.
Penns Woods Bancorp operates through its subsidiaries, providing financial services across several Pennsylvania counties. Its financial services include banking services through Jersey Shore State Bank's sixteen branch offices and Luzerne Bank's eight branch offices, as well as insurance products offered through United Insurance Solutions, LLC.
InvestingPro Insights
Penns Woods Bancorp, Inc. (NASDAQ: PWOD), amidst unveiling its new stock repurchase program, shows a blend of stability and caution in its financial metrics. With a market capitalization of $148.11 million, the company presents a modest valuation in the banking sector. The Price/Earnings (P/E) ratio stands at a reasonable 9.02, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at 9.59, suggesting that the company's earnings are adequately priced against its peers.
Investors looking for income-generating opportunities might find Penns Woods Bancorp's dividend appealing. The company has a noteworthy dividend yield of 6.43%, backed by a track record of maintaining dividend payments for 40 consecutive years, as per one of the InvestingPro Tips. This consistency in dividend payments is a testament to the company's commitment to returning value to its shareholders.
On the performance front, Penns Woods Bancorp has experienced a strong return over the last month, with a one-month price total return of 13.62%. This recent uptick could be a sign of investor confidence in the company's strategic initiatives, such as the announced stock repurchase program. In contrast, the company's revenue has seen a slight decline of 3.43% over the last twelve months as of Q1 2024, which aligns with another InvestingPro Tip highlighting weak gross profit margins. Investors may weigh these factors when considering the company's future profitability and growth prospects.
For those seeking further insights, additional InvestingPro Tips are available, which delve deeper into Penns Woods Bancorp's financial health and market position. By using the coupon code PRONEWS24, investors can receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a wealth of information to inform their investment decisions.
As Penns Woods Bancorp navigates the complexities of the financial sector and addresses the challenges highlighted in the company's forward-looking statements, these InvestingPro Insights provide a snapshot of the company's current standing and potential for future growth.
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