Kevin Pace, the President and CEO of Bogota Financial Corp. (NASDAQ:BSBK), recently purchased shares of the company's common stock, according to a new SEC filing. The transactions, which took place on June 5 and June 7, 2024, involved the acquisition of a total of 112 shares at prices ranging from $6.65 to $6.75 per share, amounting to a total investment of $750.
The purchases by Mr. Pace come as a notable action by the company's top executive, demonstrating a direct investment in Bogota Financial Corp.'s stock. As per the SEC filing, on June 5, the CEO bought 12 shares at $6.72 each. Two days later, on June 7, he made additional purchases: 50 shares at $6.65 per share and another 50 shares at $6.75 per share. Following these transactions, Mr. Pace's direct holdings in the company increased to 44,015 shares.
It is important to note that these shares include restricted stock which vests at a rate of 20% per year, starting from September 2, 2022. This detail suggests a long-term commitment to the company by the CEO, as these vested shares represent a future stake in the company's performance.
Bogota Financial Corp., headquartered in Teaneck, New Jersey, operates as a savings institution not federally chartered, and the stock trades under the ticker BSBK on the NASDAQ. The company's financial stability and growth prospects are often closely watched by investors, and the actions of its executives can provide insights into their confidence in the firm's future.
Investors typically monitor such insider transactions for signs that company leaders are bullish on their firm's outlook and believe the stock is undervalued. CEO Kevin Pace's recent stock purchases may be interpreted by the market as a positive signal regarding Bogota Financial Corp.'s potential.
In other recent news, Bogota Financial Corp. has announced a new stock repurchase program, following regulatory approval. The initiative allows for the buyback of up to 237,090 shares, which is around 5% of its current outstanding common stock, excluding shares held by Bogota Financial, MHC. This is the company's fifth such program. The repurchase of shares can take place through open market transactions, private deals, or under a trading plan that aligns with Rule 10b5-1 of the Securities and Exchange Commission.
Bogota Financial Corp. has not committed to purchasing any specific number of shares, and the exact number to be bought back remains uncertain. The company will base its repurchase decisions on a variety of factors, including stock availability, market conditions, share trading price, alternative capital uses, and the company's financial performance. All open market acquisitions will comply with Rule 10b-18 of the Securities and Exchange Commission and other applicable legal requirements. It's important to note that the company has not set an expiration date for the repurchase program and reserves the right to suspend, terminate, or modify the plan at any time for any reason. These are recent developments in the company's operations.
InvestingPro Insights
As investors consider the implications of Bogota Financial Corp. CEO Kevin Pace's recent stock purchases, a closer look at the company's financial metrics could provide additional context. According to InvestingPro data, Bogota Financial Corp. (NASDAQ:BSBK) has a market capitalization of $87.65 million, reflecting the size and scale of the company in the financial sector. Despite the CEO's confidence, the company's P/E ratio stands at a negative -109.98, indicating that the market has priced its shares higher than the earnings might currently justify.
However, the InvestingPro Tips suggest a potential turnaround, with analysts forecasting net income growth for the current year. This could be a driver behind the CEO's recent investments, signaling his belief in the company's ability to overcome past performance issues. Another point of consideration is the company's weak gross profit margins, which have been a challenge but could be an area of focus for improvement.
For investors interested in a deeper dive into Bogota Financial Corp.'s financials and future outlook, InvestingPro offers additional insights. There are currently 4 more InvestingPro Tips available, which could help in making a more informed investment decision. For those considering an InvestingPro subscription, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
With the next earnings date set for July 25, 2024, investors will be keenly awaiting further developments and whether the anticipated profitability materializes as analysts predict. The CEO's recent stock purchases may just be the precursor to a more significant turnaround story for Bogota Financial Corp.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.