Director of United Bancorp Inc. (NASDAQ:UBCP), Brian M. Hendershot, has recently increased his stake in the company by purchasing shares valued at a total of $19,974. The transaction, which took place on June 21, 2024, involved Hendershot acquiring 1,620 shares of common stock at a price of $12.33 each.
This purchase aligns with Hendershot's ongoing investment in the Ohio-based state commercial bank, reflecting his confidence in the company's future. Following this transaction, Hendershot now directly owns a total of 52,394 shares in United Bancorp Inc.
Investors often monitor insider buying as it can be a signal of a director's bullish view on the company's prospects. With Hendershot's role as a director, his investment decisions are particularly noteworthy for current and potential shareholders.
United Bancorp Inc. operates as the bank holding company for The Citizens Savings Bank, which provides various banking products and services in Ohio. The company's stock is publicly traded on NASDAQ under the ticker symbol UBCP, and it has a significant presence in the regional banking sector.
The details of the transaction were made public through a Form 4 filing with the Securities and Exchange Commission, which provides transparency into the trading activities of company insiders. As per the filing, the shares were purchased in a single transaction, and the price per share was uniform throughout.
Investors and market analysts often review such filings to gain insight into insider sentiment and to potentially inform their investment strategies. The recent purchase by Director Hendershot may be interpreted as a positive sign for United Bancorp Inc.'s outlook by some market participants.
In other recent news, United Bancorp, Inc. has reported an increase in its quarterly dividend to $0.175 per share, marking a 6.1% rise from the same quarter of the previous year. This contributes to a total cash dividend of $0.4975 per share paid in the first half of the current year, inclusive of a special dividend of $0.15 in the first quarter. The regular cash dividend now yields 4.84%, based on United Bancorp's quarter-end market value of $14.47.
In other developments, at the annual meeting, shareholders re-elected the company's Board of Directors for the upcoming year. The board includes Scott A. Everson, the current President and CEO, and Richard L. Riesbeck, who also serves as the Chairman of the UBCP Board, among others.
United Bancorp, operating through its subsidiary Unified Bank, disclosed total assets of $819.4 million and total shareholder's equity of $63.6 million as of December 31, 2023. These recent developments reflect the bank's ongoing financial activities and strategic management decisions.
InvestingPro Insights
Director Brian M. Hendershot's recent purchase of United Bancorp Inc. (NASDAQ:UBCP) shares underscores a commitment to the company's trajectory, an action that resonates with several metrics and insights from InvestingPro. Notably, the company has a history of rewarding shareholders with a consistent dividend, having maintained dividend payments for 32 consecutive years and raised its dividend for the last four years. This dedication to shareholder returns is a pivotal aspect for investors seeking stable income streams, especially in the context of the company's significant dividend yield of 8.58% as of mid-2024.
On the valuation front, United Bancorp Inc. trades at a P/E ratio of 8.23, which is considered high relative to near-term earnings growth, suggesting that investors may be expecting higher earnings in the future or are willing to pay a premium for the company’s current earnings stability. The PEG Ratio, standing at 2.34 for the last twelve months as of Q1 2024, might also be indicative of the market pricing in future growth expectations.
However, it’s important to note that analysts anticipate a sales decline in the current year, and net income is expected to drop, which could be areas of concern for potential investors. Despite this, analysts predict the company will remain profitable this year, which may have contributed to Hendershot's confidence in increasing his stake.
For those interested in a more comprehensive analysis, InvestingPro offers additional insights, including an array of InvestingPro Tips that could further inform investment decisions. Currently, there are 10 additional tips available on InvestingPro for United Bancorp Inc., which can be accessed through the dedicated page: https://www.investing.com/pro/UBCP. To enhance your InvestingPro experience, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.