Amalgamated Financial Corp. (NASDAQ:AMAL) has reported significant stock sales by Workers United, according to a recent SEC filing. The transactions, which occurred between November 5 and November 7, 2024, involved the sale of 235,753 shares of common stock, totaling approximately $8.59 million. The shares were sold at prices ranging from $33.2331 to $38.0662.
Workers United, a ten percent owner of Amalgamated Financial, executed these sales across multiple transactions. On November 5, 47,253 shares were sold at an average price of $33.2331. The following day, November 6, saw a larger transaction of 98,416 shares sold at an average price of $36.7109, along with additional sales of 26,584 shares at $37.6237 and 50,000 shares at $38.0662. Finally, on November 7, 11,203 shares were sold at $35.7321, followed by 2,797 shares at $36.6686.
These transactions have reduced Workers United's direct ownership in Amalgamated Financial, as reflected in the updated shareholding figures. The stock sales are part of routine portfolio management by Workers United, which continues to hold a significant stake in the company.
In other recent news, Amalgamated Financial showcased robust growth in its Q3 2024 earnings call. The financial institution reported a net income of $27.9 million, or $0.90 per diluted share, with core net income standing at $28 million or $0.91 per diluted share. Deposits and loans saw significant increases, with total deposits reaching $7.6 billion, driven by growth in social, philanthropic, and sustainable funds.
The company experienced a 2.7% growth in loans, primarily in the commercial, industrial, and sustainable lending sectors. The Tier 1 leverage ratio improved to 8.63%, with the company setting a goal to reach 9% in the near future. Amalgamated Financial also revised its full-year guidance upward, indicating optimism for future growth opportunities, particularly in sustainable banking.
These recent developments reflect Amalgamated Financial's strategic approach to maturing below-market loans and focusing on higher-yielding options. The company projects stable charge-off rates in the mortgage market and expects political deposit outflows to taper at year-end. The bank also aims to maintain an $8.35 billion balance sheet size by the end of the year. Further details of the company's operational strategies and financial outlook will be shared at an upcoming Investor Day.
InvestingPro Insights
Amalgamated Financial Corp. (NASDAQ:AMAL) has been experiencing strong market performance, which aligns with the recent stock sales by Workers United. According to InvestingPro data, AMAL has shown impressive returns across various timeframes. The company's 1-year price total return stands at a remarkable 85.68%, while its 6-month and 3-month returns are 39.67% and 23.34%, respectively. This strong performance may have influenced the timing of Workers United's decision to sell shares.
Despite the recent stock sales, AMAL's fundamentals appear solid. The company boasts a P/E ratio of 10.45, which is relatively low and suggests potential undervaluation. This is further supported by an InvestingPro Tip indicating that AMAL is trading at a low P/E ratio relative to its near-term earnings growth.
Another InvestingPro Tip highlights that AMAL has raised its dividend for three consecutive years, demonstrating a commitment to shareholder returns. This is complemented by the company's current dividend yield of 1.36% and a notable dividend growth of 20% over the last twelve months.
For investors seeking more comprehensive analysis, InvestingPro offers 12 additional tips for Amalgamated Financial Corp., providing a deeper understanding of the company's financial health and market position.
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