Mitchell A. Johnson, a director at Federal Agricultural Mortgage Corp (NYSE:AGM), recently sold shares of the company's Class C Non-Voting Common Stock. According to a Form 4 filing with the Securities and Exchange Commission, Johnson sold a total of 1,500 shares on November 19, 2024. The sales were executed at prices ranging from $204.55 to $204.98 per share, amounting to a total transaction value of $307,040.
Following these transactions, Johnson retains ownership of 11,060 shares, which includes 373 unvested restricted stock units scheduled to vest on March 31, 2025, contingent upon his continued service as a director. The transactions were conducted during an open trading window for employees and directors of the company.
In other recent news, the Federal Agricultural Mortgage Corporation, also known as Farmer Mac, has reported a successful Q3, with a strategic shift towards higher-yielding segments such as renewable energy. Year-to-date revenues increased to $270 million, up by over $10 million from the previous year. Core earnings rose to $128 million, with an operational efficiency ratio below the 30% target. Despite a decrease in outstanding business volume to $28.5 billion, the company maintained financial stability and remained well-capitalized, holding $850 million in cash and short-term instruments.
The company has launched the STARS system to boost operational efficiency and scalability, and new business volume for the quarter was reported at $2 billion. Management conveyed optimism about growth in the Renewable Energy segment and Farm & Ranch volumes, and announced a new securitization program aimed at enhancing capital efficiency. Despite a modest year-over-year decline in core earnings due to a $3.3 million provision for losses, core earnings net of credit increased by 6% year-over-year. These are some of the recent developments in the company's operations.
InvestingPro Insights
Federal Agricultural Mortgage Corp (NYSE:AGM), also known as Farmer Mac, has demonstrated strong financial performance and shareholder value creation, as evidenced by recent InvestingPro data. The company's market capitalization stands at $2.22 billion, reflecting its significant presence in the agricultural finance sector.
One of the most notable InvestingPro Tips highlights that AGM has raised its dividend for 13 consecutive years, underscoring its commitment to returning value to shareholders. This is further supported by the company's impressive dividend yield of 2.75% and a substantial dividend growth of 27.27% over the last twelve months. These figures suggest that despite the recent insider sale by Director Mitchell A. Johnson, the company maintains a strong financial position and continues to prioritize shareholder returns.
The company's profitability is also noteworthy, with an adjusted P/E ratio of 12.65 and a robust operating income margin of 71.94% for the last twelve months as of Q3 2024. These metrics indicate that AGM is efficiently converting its revenue into profit, which aligns with another InvestingPro Tip stating that the company has been profitable over the last twelve months.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 5 more InvestingPro Tips available for AGM, providing a deeper understanding of the company's financial health and market position.
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