Noe G. Valles, a director at South Plains Financial, Inc. (NASDAQ:SPFI), has purchased 50,000 shares of the company's common stock in a private transaction. The shares were acquired at a price of $33.50 each, totaling approximately $1.68 million. This transaction increases Valles' direct ownership to 386,437 shares. The shares were acquired from Curtis C. Griffith, another director and executive officer of the company.
In other recent news, South Plains Financial reported a steady diluted earnings per share (EPS) of $0.66 in its Third Quarter 2024 Earnings Conference Call, consistent with the previous quarter's results. The company also announced a 7% increase in its quarterly dividend and is advancing with its $10 million stock repurchase program. Despite a decrease in its loan portfolio, South Plains Financial reported an increase in deposits and a strong capital position.
A recent development includes the management's optimistic outlook for future loan growth and improved economic conditions, potentially influenced by anticipated Federal Reserve interest rate reductions. The management also expects stabilization in the loan growth, particularly in the indirect auto portfolio, and maintains a focus on credit quality.
However, the company experienced a decrease in non-interest income, impacted by lower mortgage banking revenues, and an increase in non-performing loans to $24.7 million. Despite these challenges, South Plains Financial remains positive about future margin improvements and loan growth while effectively managing expenses and credit quality.
InvestingPro Insights
The recent insider purchase by Noe G. Valles aligns with South Plains Financial's (NASDAQ:SPFI) strong performance and positive outlook. According to InvestingPro data, the company's stock is trading near its 52-week high, with a price that's 99.22% of its peak. This bullish sentiment is further supported by the stock's impressive 32.08% total return over the past year.
InvestingPro Tips highlight that South Plains Financial has raised its dividend for 6 consecutive years, demonstrating a commitment to shareholder returns. The company's current dividend yield stands at 1.74%, with a notable dividend growth of 15.38% in the last twelve months. This consistent dividend growth may have factored into Valles' decision to increase his stake in the company.
Despite a 16.43% decline in revenue over the last twelve months, South Plains Financial maintains a healthy operating income margin of 30.85%. The company's P/E ratio of 14.86 suggests that the stock may still be reasonably valued, especially considering its strong recent performance and dividend history.
For investors seeking more comprehensive analysis, InvestingPro offers additional insights with 10 more tips available for South Plains Financial. These tips could provide further context to the insider purchase and the company's financial health.
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