Provident Bancorp, Inc. /MD/ (NASDAQ:PVBC) Director Dennis Pollack has recently made a significant purchase of the company's common stock, according to the latest filings. Pollack acquired 1,950 shares at a price of $10.30 per share, totaling an investment of $20,085. This transaction indicates a vote of confidence from the director in the financial institution's future prospects.
Provident Bancorp, based in Amesbury, MA, operates as a savings institution not federally chartered and is known for providing personal banking services as well as loans and mortgages. The buy transaction, which took place on September 10, 2024, has increased Pollack's direct ownership in the company to 37,721 shares. It is worth noting that this figure includes restricted stock, which vests at a rate of 20% per year starting January 25, 2025.
In addition to his non-derivative holdings, Pollack has derivative interests in the form of stock options. These options are exercisable at a rate of 20% per year beginning on the same date and pertain to 25,500 shares of common stock. The exercise price for these options is set at $11.17, with an exercise date starting in 2025 and an expiration date in 2034.
Investors often monitor insider transactions such as these for insights into how company executives view the stock's value and future performance. While Pollack's recent purchase is a single data point, it contributes to the broader picture of insider sentiment at Provident Bancorp.
InvestingPro Insights
Provident Bancorp, Inc. /MD/ (NASDAQ:PVBC) has caught the attention of investors not only due to insider transactions but also because of its intriguing financial metrics and analyst expectations. According to recent data from InvestingPro, Provident Bancorp has a market capitalization of approximately $170.89 million, reflecting its position in the market.
One of the key InvestingPro Tips for Provident Bancorp is its low P/E ratio, currently standing at 24.17, which is attractive relative to its near-term earnings growth potential. This could signal that the stock is undervalued compared to its earnings outlook. In line with this, the company's PEG ratio, which measures the P/E ratio relative to the growth rate of its earnings, is notably low at 0.19 for the last twelve months as of Q2 2024, suggesting that the stock could be a compelling choice for value investors.
Despite a robust revenue growth of 193.04% in the last twelve months as of Q2 2024, analysts are anticipating a sales decline in the current year. This contrast between past performance and future expectations may be a critical factor for investors to consider. Additionally, the company does not pay a dividend, which could influence the investment decisions of those seeking regular income from their investments.
InvestingPro also notes that Provident Bancorp has been profitable over the last twelve months, with a basic and diluted EPS (Continuing Operations) of $0.42. This profitability is an essential factor for investors, especially when aligned with the director's recent stock purchase, which could be interpreted as a positive sign.
For those interested in further insights, there are additional InvestingPro Tips available, providing a more comprehensive understanding of Provident Bancorp's financial health and future prospects. The full suite of tips and data can be found on the InvestingPro platform at https://www.investing.com/pro/PVBC.
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