In a recent transaction on June 11, Gill Jagroop, a director at United Security Bancshares (NASDAQ:UBFO), purchased 8,255 shares of the company's common stock. The shares were acquired at a price of $7.20 each, amounting to a total investment of $59,436.
This move by Jagroop reflects a continued commitment to the company, as indicated by the substantial addition to his holdings. Following the transaction, Jagroop now owns a total of 1,079,667 shares in United Security Bancshares, a financial institution that operates primarily through its subsidiary, United Security Bank, serving customers in central California.
Investors often monitor the buying and selling activities of a company's directors and executives as these transactions can provide insights into their perspective on the company's future performance. The purchase of shares by a director might suggest confidence in the strategic direction and financial health of the institution.
United Security Bancshares, headquartered in Fresno, California, has been serving its community with a range of banking services, and this recent stock purchase by one of its directors could signal positive sentiment internally about the bank's trajectory.
For those interested in following the company's stock performance, United Security Bancshares trades under the ticker symbol NASDAQ:UBFO. As always, investors are encouraged to consider the broader context of the market and other relevant factors when assessing the implications of insider transactions.
InvestingPro Insights
In light of the recent insider purchase by director Gill Jagroop, United Security Bancshares (NASDAQ:UBFO) presents an interesting picture for investors. According to InvestingPro, the company is trading at a low earnings multiple with a P/E Ratio of 6.94, which could indicate that the stock is potentially undervalued relative to its earnings. This aligns with the director's confidence in the company, as reflected by his substantial stock acquisition.
Additionally, United Security Bancshares pays a significant dividend to shareholders, boasting a dividend yield of 6.58% as of the latest data. This is particularly attractive to income-seeking investors who can benefit from the steady income stream in addition to any potential capital gains.
However, it's important to note that the company suffers from weak gross profit margins, with a recent gross profit reported at $51.14M. This could be a point of concern as it reflects on the company's efficiency in managing its cost of goods sold and could impact profitability in the long term.
Investors might also find the InvestingPro Fair Value of $7.24 USD of interest, which is in close proximity to the recent purchase price of $7.20 per share by Jagroop. This suggests that the director's investment is aligned with current fair value estimations.
For those looking to delve deeper into the financial health and future prospects of United Security Bancshares, additional InvestingPro Tips are available. With a total of 4 tips listed, including insights on profitability over the last twelve months, these can provide a more comprehensive understanding of the company's performance and potential.
To access these insights and more, investors can visit https://www.investing.com/pro/UBFO and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. This exclusive offer can equip investors with valuable tools and data to make more informed decisions.
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