George Makris Jr., Executive Chairman of Simmons First National Corp (NASDAQ:SFNC), recently sold 25,440 shares of the company's common stock. The shares were sold at an average price of $25.21, amounting to a total transaction value of approximately $641,342. Following this transaction, Makris holds 608,347 shares directly.
In addition to the sale, Makris executed several non-qualified stock options, acquiring a total of 25,440 shares at a price of $22.20 each. This exercise of options was part of a series of transactions that took place on November 13, 2024. The stock options were adjusted for a 2-for-1 stock split that occurred on February 8, 2018.
After these transactions, Makris retains indirect ownership of additional shares held by a trust and individual retirement accounts (IRAs), including those of his spouse.
In other recent news, Simmons First National Corporation announced that CEO Robert "Bob" Fehlman will retire at the end of 2024, with George Makris, Jr., the current Executive Chairman, set to take the helm on January 1, 2025. Concurrently, Christopher Van Steenberg was welcomed as the new Chief Operating Officer. These executive changes come on the heels of the company's third-quarter earnings report, which showed an adjusted GAAP earnings per share (EPS) of $0.20, falling short of the consensus estimate of $0.33. In response, Baird raised the price target for Simmons First National to $24, maintaining a neutral stance on the stock.
Simmons First National has shown early success in repricing its deposits following the initial Federal Reserve rate cut, leading Baird to anticipate improvements in the bank's net interest margin (NIM) and net interest income (NII). The bank is also implementing strategic initiatives to manage deposit costs and consolidate branches, with the goal of reducing core expenses.
Furthermore, Simmons First National projects a stable net interest margin in the fourth quarter, with potential improvements in 2025 depending on Federal Reserve actions. The bank also anticipates improved loan demand as rates decrease. These recent developments highlight Simmons First National's proactive approach to navigating changing economic conditions, emphasizing profitability and a strong balance sheet.
InvestingPro Insights
In light of George Makris Jr.'s recent stock transactions, it's worth examining some key financial metrics and insights for Simmons First National Corp (NASDAQ:SFNC). According to InvestingPro data, SFNC has a market capitalization of $3.07 billion and a P/E ratio of 23.9, suggesting a moderate valuation relative to earnings.
The company's dividend profile is particularly noteworthy. InvestingPro Tips reveal that SFNC has raised its dividend for 13 consecutive years and has maintained dividend payments for an impressive 51 consecutive years. This consistent dividend history aligns with the company's current dividend yield of 3.43%, which may be attractive to income-focused investors.
SFNC's stock performance has been robust, with InvestingPro data showing a 54.21% total return over the past year and a 37.03% return over the last six months. This strong performance is reflected in an InvestingPro Tip highlighting the company's high return over the last year and strong return over the last three months.
While the company's revenue growth has been negative, with a -15.07% decline in the last twelve months, it's important to note that analysts remain optimistic. An InvestingPro Tip indicates that 4 analysts have revised their earnings upwards for the upcoming period, and the company is expected to remain profitable this year.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for SFNC, providing a deeper understanding of the company's financial health and market position.
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