In a recent transaction, P. Clinton Winter, a director at United Bankshares Inc. (NASDAQ:UBSI), has purchased additional shares in the company. The acquisition, which took place on May 6, 2024, involved 80 shares of phantom stock at a price of $34.15 per share, amounting to a total value of $2,732.
The transaction was disclosed in a Form 4 filing with the Securities and Exchange Commission. Phantom stock is a unique financial instrument that typically involves a deferred cash payment based on the value of the company's stock. According to the footnotes in the filing, these shares of phantom stock are payable in cash following Winter's termination of employment with United Bankshares Inc.
As a result of this purchase, Winter's direct holdings in the company have increased, with a reported 46,296 shares of phantom stock now in his possession. Additionally, the filing revealed that Winter also holds 455,166 shares of common stock directly, 36,800 shares indirectly through Bray & Oakley Insurance, and 1,000 shares indirectly by his spouse.
Investors often monitor insider transactions as they can provide insights into the confidence that executives and directors have in the company's future performance. The recent purchase by Winter could be interpreted as a positive signal about the bank's prospects.
United Bankshares Inc., headquartered in Charleston, West Virginia, operates as a state commercial bank and provides various banking products and services. The company has a strong presence in the region, with a history of delivering financial solutions to its customers.
InvestingPro Insights
United Bankshares Inc. (NASDAQ:UBSI) has demonstrated a commitment to shareholder returns, as evidenced by its impressive track record of raising dividends. An InvestingPro Tip highlights that UBSI has increased its dividend for an astonishing 35 consecutive years, showcasing a stable and potentially attractive income stream for investors. This consistency is further underscored by the fact that the company has maintained dividend payments for 41 consecutive years, suggesting a deep-rooted policy of returning value to shareholders.
From a financial standpoint, UBSI's current market capitalization stands at $4.63 billion, with a Price/Earnings (P/E) ratio of 12.96, reflecting the market's valuation of the company's earnings. The Price to Book (P/B) ratio, as of the last twelve months leading up to Q1 2024, is 0.96, which could indicate that the stock is potentially undervalued relative to its assets. Moreover, despite a slight decrease in revenue growth by -3.55% during the same period, the company's operating income margin remains robust at 47.58%, pointing towards efficient management and profitability.
For those interested in a deeper analysis, there are additional InvestingPro Tips available, which include insights on analysts' earnings revisions and the company's gross profit margins. Investors can explore these further by visiting InvestingPro and can benefit from an extra 10% off a yearly or biyearly Pro and Pro+ subscription using the coupon code PRONEWS24. With these insights, market participants can make more informed decisions regarding their investment in United Bankshares Inc.
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