Curtis C. Griffith, Chairman and CEO of South Plains Financial, Inc. (NASDAQ:SPFI), has recently sold a significant portion of his holdings in the company. The transactions, which took place on July 30 and July 31, 2024, involved the sale of a total of 17,470 shares of common stock, resulting in proceeds of over $576,000.
On the first day of transactions, Griffith sold 5,000 shares at an average price of $33 per share, with the sales occurring at prices ranging from $33.00 to $33.08. The following day, an additional 12,470 shares were sold at an average price of $32.96, with individual sales ranging from $32.75 to $33.40 per share.
Following these transactions, Griffith still holds a substantial amount of South Plains Financial stock, including 1,010,967 shares of common stock, as well as indirect ownership through various family trusts. Notably, these holdings include shares owned by the CEO's spouse and shares held in trusts for which Griffith serves as trustee, indicating a continued vested interest in the company's success.
The reported sales represent a notable change in Griffith's investment in the bank, which operates within the state commercial banks sector and is headquartered in Lubbock, Texas. The move has been fully disclosed in accordance with SEC regulations, providing transparency to investors and the market.
As is customary, the CEO has agreed to provide full information on the number of shares sold at each separate price upon request by the SEC, the issuer, or any security holder of the issuer. This commitment to transparency is in line with South Plains Financial's values and regulatory requirements.
Investors and market watchers often look to insider transactions such as these for insights into executive sentiment and potential future performance of the company's stock. As of the last trade, South Plains Financial, Inc. continues to be a key player in its sector, with its stock being publicly traded and closely followed by the financial community.
In other recent news, South Plains Financial has reported significant growth for Q2. The company noted an increase in its second quarter diluted earnings per share (EPS) to $0.66, a slight rise from $0.64 in the previous quarter. This growth was primarily driven by robust organic loan growth and an improved net interest margin (NIM). Furthermore, the bank declared a quarterly dividend of $0.14 per share.
South Plains Financial also reported an increase in non-interest income to $12.7 million, mainly due to service charges and interchange revenue, although there was a decrease in mortgage banking revenues. The bank's executives, along with those from Citibank, discussed a recent shift in investor interest from tech stocks to financials and their conservative approach to capital management and growth considering current geopolitical uncertainties.
Analysts expect loan growth and NIM expansion to moderate in the second half of the year. Despite this, the company maintains a focus on credit quality and capitalization, showing a stable allowance for credit losses and a tangible common equity to tangible assets ratio of 9.44%. These recent developments highlight South Plains Financial's steady performance amidst a volatile market landscape.
InvestingPro Insights
Amidst the recent transactions by South Plains Financial, Inc.'s (NASDAQ:SPFI) CEO, Curtis C. Griffith, investors may be looking for additional context to understand the potential impact on the company's financial health and stock performance. InvestingPro data and tips provide a deeper dive into the company's current metrics and analyst expectations, which could be insightful in light of these insider movements.
From a profitability perspective, South Plains Financial has demonstrated resilience, with analysts predicting the company will be profitable this year, a sentiment supported by a profitable track record over the last twelve months. This aligns with the InvestingPro Tip that the company has maintained a strong return over the last three months, with a 22.23% total return, and a robust 22.04% return over the past year.
InvestingPro Data further reveals a market capitalization of $519M USD and a Price/Earnings (P/E) ratio of 11.4, which adjusts to 11.63 when looking at the last twelve months as of Q2 2024. While the company has seen a revenue decline of 18.92% during the same period, its operating income margin remains high at 32.22%, showcasing efficient management of its operations.
Moreover, South Plains Financial has a history of rewarding shareholders, having raised its dividend for 5 consecutive years, with a current dividend yield of 1.76% as of the latest data. This commitment to returning value to shareholders is also reflected in the InvestingPro Tip highlighting that two analysts have revised their earnings upwards for the upcoming period.
For those interested in further insights, InvestingPro offers additional tips on South Plains Financial, Inc., which can be found at https://www.investing.com/pro/SPFI. These tips may provide investors with a more comprehensive understanding of the company's financial outlook and stock performance potential.
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