Matthew G. De Soto, a director at Mid Penn Bancorp Inc. (NASDAQ:MPB), recently increased his stake in the company with a substantial purchase of common stock. According to a filing with the Securities and Exchange Commission, De Soto acquired 18,407 shares on November 1, 2024, at a price of $29.50 per share, bringing the total value of the transaction to approximately $543,006.
Following this purchase, De Soto's direct ownership in Mid Penn Bancorp stands at 100,213.99 shares. Additionally, he holds 2,292 shares indirectly through a PUTMA for Children and 78 shares via L T D Investments. Furthermore, De Soto owns 999 shares of common restricted stock, which are set to vest fully on the first anniversary of the grant date. The recent acquisition reflects De Soto's ongoing confidence in the bank's prospects.
In other recent news, Mid Penn Bancorp has announced a public offering of 2,375,000 shares of common stock at a price of $29.50 per share, aiming to raise $70 million. The offering is managed by Stephens Inc. and Piper Sandler & Co., with the bank expecting to net approximately $67 million, assuming no exercise of the underwriters' additional purchase option. The proceeds will support growth initiatives such as organic growth, potential redemption of subordinated debt, future strategic transactions, and general corporate purposes.
The bank's earnings per share (EPS) for the third quarter of 2024 reported a favorable outcome of $0.74, surpassing both analysts' and consensus estimates. This performance was mainly attributed to higher-than-expected net interest income and fee income. Mid Penn Bancorp's pre-provision net revenue (PPNR) also exceeded initial forecasts after adjustments for certain expenses.
Piper Sandler, a financial services firm, has upgraded its price target for Mid Penn Bancorp shares to $35.00, maintaining an Overweight rating. This adjustment follows the bank's strong performance in the second quarter, where it reported an EPS of $0.71, again beating estimates. The bank's credit profile remains strong, with nonperforming assets (NPAs) showing only a slight increase due to a single loan migration. These are some of the recent developments surrounding Mid Penn Bancorp.
InvestingPro Insights
Matthew G. De Soto's significant purchase of Mid Penn Bancorp Inc. (NASDAQ:MPB) shares aligns with several positive indicators highlighted by InvestingPro. The company's stock has shown strong performance, with InvestingPro data revealing a robust 58.55% total return over the past year and an impressive 47.94% return in the last six months. This upward trend supports De Soto's decision to increase his stake.
InvestingPro Tips suggest that MPB is trading at a low P/E ratio relative to its near-term earnings growth, with a current P/E ratio of 10.73. This valuation metric could indicate that the stock is potentially undervalued, which may have influenced De Soto's investment decision.
Another noteworthy InvestingPro Tip is that MPB has maintained dividend payments for 14 consecutive years, demonstrating a commitment to shareholder returns. This consistency in dividends, coupled with a current dividend yield of 2.58%, adds to the stock's appeal for long-term investors like De Soto.
For readers interested in a deeper analysis, InvestingPro offers 7 additional tips that could provide further insights into MPB's financial health and market position. These additional tips, available with an InvestingPro subscription, could offer valuable context to De Soto's insider purchase and the company's overall investment potential.
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