HOUSTON—Paul P. Egge, the Senior Executive Vice President and Chief Financial Officer of Stellar Bancorp, Inc. (NASDAQ:STEL), recently sold shares of the company's common stock, according to a filing with the Securities and Exchange Commission. The transactions took place over two days, with Egge selling a total of 6,730 shares.
On October 29, Egge sold 326 shares at a price of $27.50 per share. The following day, on October 30, he sold an additional 6,404 shares at $28.00 per share. The total value of these transactions amounted to approximately $188,277.
Following these transactions, Egge holds 60,155 shares of Stellar Bancorp's common stock. The sales were conducted as part of routine financial management and did not involve any equity swaps.
In other recent news, Stellar Bancorp reported strong growth in its third quarter of 2024. The bank's net income increased to $33.9 million, or $0.63 per diluted share, up from $29.8 million, or $0.56 per share, in the previous quarter. This growth was primarily due to a $6 million reversal of provision for credit losses, thanks to a decrease in non-performing loans.
Furthermore, Stellar Bancorp initiated share repurchases and announced plans to redeem $40 million of subordinated debt, showcasing a strategic approach to capital management and future growth. Amid these developments, the bank also originated over $300 million in loans, despite a strategic reduction in CRE lending.
Analysts noted a slight increase in loans rated as "special mention," indicating potential risks. However, the bank's management remains optimistic, anticipating mid-single-digit growth in 2025 despite economic uncertainty. In addition, Stellar Bancorp is exploring merger and acquisition opportunities to enhance funding profiles and manage expenses.
These recent developments reflect Stellar Bancorp's strong financial position and readiness to capitalize on growth opportunities while navigating potential challenges. With strategic decisions to optimize the loan portfolio and maintain a healthy net interest margin, the bank continues to position itself well in the current economic climate.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Stellar Bancorp's financial position and market performance. The company's stock has shown significant momentum, with a 26.83% price total return over the past six months. This aligns with an InvestingPro Tip highlighting a "large price uptick over the last six months," suggesting investor confidence in the company's prospects.
Despite the recent insider sale by CFO Paul P. Egge, Stellar Bancorp maintains a solid financial foundation. The company's P/E ratio stands at 12.04, indicating a relatively modest valuation compared to earnings. Additionally, the company boasts an impressive operating income margin of 42.42% for the last twelve months as of Q3 2024, reflecting strong operational efficiency.
InvestingPro Tips also reveal that Stellar Bancorp offers a high shareholder yield and is expected to remain profitable this year. These factors may contribute to the stock's attractiveness to investors, potentially offsetting concerns about the insider sale.
For readers seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for Stellar Bancorp, providing deeper insights into the company's financial health and market position.
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