Univest Financial Corporation (NASDAQ:UVSP) announced a series of transactions involving its Senior Executive Vice President and Chief Operating Officer, Michael S. Keim. According to recent filings, Keim sold a total of 5,535 shares of Univest Financial stock, netting over $158,000.
The transactions, which took place on September 17 and 18, saw Keim dispose of shares at average prices ranging from $28.4271 to $28.759. The sales are part of routine trading activities disclosed by company insiders, providing transparency to investors and the market.
In addition to the sales, Keim also acquired shares through the exercise of stock options on the same dates. A total of 5,535 shares were purchased at a fixed price of $19.68 per share, amounting to a transaction value of $108,928.
Following these transactions, Keim's ownership in Univest Financial includes a significant number of shares acquired through the company's dividend reinvestment plan, as indicated in the footnotes of the filing. The exact number of shares owned following the transactions was reported as 55,679.077 shares.
Investors and market watchers often pay close attention to insider trading patterns, as they can provide insights into the executives' perspectives on the company's current valuation and future prospects. However, it is important to note that insider transactions can be influenced by a variety of factors and do not necessarily signal a change in company fundamentals.
Univest Financial Corporation, headquartered in Souderton, Pennsylvania, operates as the bank holding company for Univest Bank and Trust Co., providing a range of financial services to both individuals and businesses in the region.
"In other recent news, Univest Corporation of Pennsylvania has reported strong second-quarter 2024 earnings, surpassing both analyst and consensus estimates. The company reported earnings per share (EPS) of $0.62, notably higher than the expected $0.51 EPS estimated by Piper Sandler and consensus estimates. Univest also experienced significant growth in deposits and loans, with deposits increasing by $90 million and loans by approximately $106 million.
Piper Sandler, following these developments, adjusted its price target for Univest, raising it from $20.00 to $24.00, while maintaining a Neutral rating on the stock. Despite a slight shortfall in total revenues, Piper Sandler viewed the quarter positively, noting improvements in credit and capital, as well as increases in loan and deposit balances.
In addition, Univest repurchased nearly 191,000 shares and provided updated guidance for the year. However, the company anticipates an increase in the cost of deposits in the latter half of the year. Despite this, Univest remains optimistic about its growth pipeline and future performance, with expectations for deposit pricing to become more competitive in the coming quarters."
InvestingPro Insights
Amidst the insider trading activities at Univest Financial Corporation (NASDAQ:UVSP), the company's financial health and market performance remain key areas of interest for investors. Univest Financial has demonstrated a solid commitment to shareholder returns, having raised its dividend for three consecutive years and maintained dividend payments for an impressive 46 consecutive years, a testament to its financial stability and investor-friendly approach.
The company's stock has shown remarkable performance with a high return over the last year, trading near its 52-week high. This is supported by a 73.09% one-year price total return as of the last data, indicating strong investor confidence and market momentum for Univest Financial. Additionally, with analysts predicting the company will be profitable this year and having revised their earnings upwards for the upcoming period, the outlook for Univest Financial appears positive.
From a valuation perspective, Univest Financial's P/E ratio stands at 11.8, suggesting a potentially attractive valuation relative to earnings. Furthermore, the company's stock is currently trading close to the fair value estimated by InvestingPro, with a previous close price of $28.37 and an InvestingPro fair value of $30.08. This alignment with fair value may indicate a balanced market perception of the company's stock price.
For those seeking more detailed analysis and additional insights, there are currently 5 more InvestingPro Tips available, offering a deeper dive into Univest Financial's performance metrics and investment potential. These insights can be accessed through the InvestingPro platform at https://www.investing.com/pro/UVSP.
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