Gibson Lee R, the Chief Executive Officer of Southside Bancshares Inc. (NASDAQ:SBSI), recently reported a series of stock transactions, according to a Form 4 filing with the Securities and Exchange Commission. On November 6, Gibson sold 3,300 shares of the company's common stock at a price of $36.74 per share, totaling $121,242.
In addition to the sales, the CEO acquired 4,100 shares through the exercise of stock options at a price of $26.49 per share, amounting to a total value of $108,609. Following these transactions, Gibson's direct ownership of Southside Bancshares' common stock stands at 55,272 shares.
In other recent news, Southside Bancshares reported its Q3 2024 earnings, revealing a mixed performance. The company posted a net income of $20.5 million and an earnings per share (EPS) of $0.68, both showing a decline from the previous quarter. Interestingly, Southside Bancshares also adjusted its loan growth target for 2024, hinting at changes in its investment portfolio and future hiring plans.
Despite the decrease in net income and EPS, the company witnessed a rise in net interest income by $1.86 million, and the net interest margin increased to 2.95%. However, the loan balances slightly decreased to $4.58 billion. The bank also reduced its 2024 loan growth target from 5% to 3%, while nonperforming assets remained low at 0.09% of total assets.
These recent developments also include the bank's anticipation of noninterest expenses of $37 million for Q4 2024, and its plans to expand C&I lending with new hires planned for 2025. Southside Bancshares remains focused on its C&I lending initiative and is actively engaged in M&A discussions, particularly in Texas.
InvestingPro Insights
Recent transactions by Southside Bancshares Inc.'s (NASDAQ:SBSI) CEO Gibson Lee R align with the company's current financial position and market performance. According to InvestingPro data, SBSI's market capitalization stands at $1.09 billion, with a P/E ratio of 12.99, indicating a relatively modest valuation compared to industry peers.
Notably, SBSI has demonstrated strong recent performance, with InvestingPro Tips highlighting significant returns over the last week, month, and three months. The stock's 6-month price total return of 38.46% is particularly impressive, suggesting growing investor confidence.
Despite these positive indicators, it's worth noting that two analysts have revised their earnings downwards for the upcoming period, as per InvestingPro Tips. This could explain the CEO's decision to sell a portion of his shares while also exercising options to maintain a substantial stake in the company.
SBSI's dividend profile is noteworthy, with a current dividend yield of 4.86% and a track record of raising dividends for 10 consecutive years. This commitment to shareholder returns may be attractive to income-focused investors.
For those interested in a deeper analysis, InvestingPro offers 10 additional tips for SBSI, providing a more comprehensive view of the company's financial health and market position.
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