In a recent transaction reported to the Securities and Exchange Commission, Justin M. Long, Senior Executive Vice President, General Counsel, and Secretary at Stellar Bancorp, Inc. (NASDAQ:STEL), sold 4,200 shares of common stock. The shares were sold at a price of $30.01 each, resulting in a total transaction value of $126,042. Following this sale, Long retains ownership of 46,662 shares in the company. Notably, since his last ownership report, Long transferred 1,279 shares to his ex-spouse as part of a domestic relations order, and he no longer reports these shares as beneficially owned.
In other recent news, Stellar Bancorp has reported robust financial results, with a significant rise in net income to $33.9 million for the third quarter of 2024, up from $29.8 million in the previous quarter. This growth is mainly due to a $6 million reversal of provision for credit losses, signaling a decline in non-performing loans. The company has also raised its quarterly cash dividend from $0.13 to $0.14 per common share, demonstrating its commitment to returning value to shareholders.
Stellar Bancorp has also initiated share repurchases and plans to redeem $40 million of subordinated debt, indicating a strategic approach to capital management. Furthermore, the company originated over $300 million in loans, despite a strategic reduction in CRE lending, and improved its total risk-based capital ratio to 15.91%.
However, there was a slight increase in loans rated as "special mention," indicating potential risks. The management anticipates challenges in loan growth due to economic uncertainty but aims for mid-single-digit growth in 2025. These are some of the recent developments in Stellar Bancorp's financial journey.
InvestingPro Insights
As Justin M. Long reduces his stake in Stellar Bancorp, Inc. (NASDAQ:STEL), investors may find value in examining the company's current financial position and market performance. According to InvestingPro data, Stellar Bancorp boasts a market capitalization of $1.59 billion and trades at a P/E ratio of 12.72, suggesting a relatively modest valuation compared to some peers in the banking sector.
The company's recent performance has been noteworthy, with InvestingPro reporting a strong 13.36% price return over the past month and an impressive 31.58% return over the last six months. This upward trajectory aligns with an InvestingPro Tip indicating that the stock is trading near its 52-week high, which could be seen as a sign of investor confidence.
Despite the insider sale, Stellar Bancorp's financials appear solid. The company has been profitable over the last twelve months, with a revenue of $438.64 million and an operating income margin of 42.42%. Additionally, an InvestingPro Tip reveals that analysts predict the company will remain profitable this year, potentially offering some reassurance to shareholders.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips on Stellar Bancorp, providing deeper insights into the company's financial health and market position.
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