Craig W. Best, the CEO and Director of Peoples Financial Services Corp. (NASDAQ:PFIS), recently sold 4,341 shares of the company's common stock. The shares were sold at an average price of $54 each, amounting to a total transaction value of $234,414. Following this sale, Best holds 7,226 shares indirectly through an Individual Retirement Account (IRA).
This transaction is part of Best's ongoing management of his holdings in the company. After the recent sale, Best’s total direct ownership stands at approximately 18,443 shares, with an additional 1,543 shares held indirectly through the PSBT Employee Stock Ownership Plan.
In other recent news, Peoples Financial Services Corp. announced a significant increase in its quarterly cash dividend by 50.6% from the same quarter of the previous year, marking a substantial rise in shareholder returns. This development follows the company's merger with FNCB Bancorp, Inc., which was completed earlier this year. Despite the merger leading to increased expenses and a slight decrease in the company's net interest margin, financial services firm Stephens has adjusted its operating EPS forecasts for Peoples Financial for 2024 and 2025, anticipating an improvement in the company's return on assets.
The merger, part of a previous agreement between the two companies, is seen as a key development in Peoples Financial's financial trajectory. The company's board of directors declared a dividend of $0.6175 per share for the fourth quarter, a notable increase from the previous year. However, it is important to note that forward-looking statements regarding the merger's anticipated benefits and expected synergies are subject to various risks and uncertainties that may affect actual outcomes. These are the recent developments for Peoples Financial Services Corp.
InvestingPro Insights
While Craig W. Best's recent stock sale might raise eyebrows, it's important to consider Peoples Financial Services Corp.'s (NASDAQ:PFIS) overall performance and market position. According to InvestingPro data, PFIS has a market capitalization of $589.48 million and is trading near its 52-week high, with the current price at 99.21% of its peak. This suggests strong investor confidence in the company's prospects.
PFIS has demonstrated impressive shareholder value, with InvestingPro Tips highlighting that the company has raised its dividend for 8 consecutive years and maintained dividend payments for 23 consecutive years. The current dividend yield stands at 4.37%, which is attractive for income-focused investors. Moreover, the company has shown a significant dividend growth of 50.61% over the last twelve months, indicating a commitment to returning value to shareholders.
The stock's recent performance has been particularly strong, with a 22.33% price total return over the past month and a 40.81% return over the last six months. This aligns with the InvestingPro Tip noting a significant return over the last week and strong returns over various time frames.
It's worth noting that PFIS is trading at a high earnings multiple, with a P/E ratio of 76.41. However, when adjusted for the last twelve months as of Q3 2024, the P/E ratio stands at a more moderate 36.09. This valuation should be considered in the context of the company's growth prospects and dividend policy.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for PFIS, providing a deeper understanding of the company's financial health and market position.
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