Capital City Bank Group Inc (NASDAQ:CCBG) Treasurer Thomas A. Barron recently sold 8,000 shares of the company's common stock, according to the latest SEC filings. The transactions, which took place on July 30, 2024, were executed at prices ranging from $35.20 to $35.35, with a weighted average price of $35.26 per share, resulting in a total sale value of $282,080.
The sale has adjusted Barron's direct holdings in the company to 143,681 shares. It's worth noting that the reported sale price represents a weighted average, and the exact number of shares sold at each price within the range can be provided upon request. This sale is part of the normal course of transactions that company executives carry out, which can be for a variety of personal financial or estate planning reasons.
In addition to the sale, a separate transaction was recorded on June 13, 2024, representing a charitable gift of 400 shares by Barron. As a result of this gift, no proceeds were received, and it did not affect the market in the same way a sale might. Following this transaction, Barron's direct ownership in Capital City Bank Group Inc included 151,681 shares.
Barron's role as Treasurer and his status as an officer and director of the bank positions him as a key insider, whose trading activities are closely watched by investors and market analysts. The transactions are part of a required disclosure by executives and directors who routinely buy and sell shares in their own companies.
Investors often look at insider trading as a signal of an executive's belief in the company's prospects, although it is also common for executives to sell shares for personal financial management unrelated to their outlook on the company.
Capital City Bank Group Inc, headquartered in Tallahassee, Florida, operates as a state commercial bank and provides a range of banking services. The company's stock trades on the NASDAQ under the ticker symbol CCBG.
In other recent news, Capital City Bank Group has been the focus of analyst attention, following its second-quarter earnings that surpassed expectations and projected lower credit costs than previously estimated. Piper Sandler has since downgraded the bank's stock from Overweight to Neutral, citing valuation concerns, despite raising the price target to $34 from $30. The firm's analysts have noted that the bank's stock has seen significant growth, outperforming the index by approximately 7% year-to-date and 51% since the start of the year.
Piper Sandler has also adjusted its earnings estimates for Capital City Bank for the years 2024 and 2025 to $3.03 and $2.68, up from the previous estimates of $2.70 and $2.50, respectively. This adjustment is attributed to the bank's recent financial performance and an anticipated reduction in credit costs.
However, with potential Federal Reserve rate cuts looming, the firm views the shares as more fully valued, trading at over 13 times their 2025 earnings estimate and 1.60 times the tangible book value per share. The new $34 price target assumes that the bank's shares will trade at approximately 12.5 times the firm's 2025 earnings estimate, a slight increase from the previous multiple of 12 times. Piper Sandler suggests that the current valuation is near the upper end of expected industry price-to-earnings multiples.
InvestingPro Insights
Following the recent insider trading activity at Capital City Bank Group Inc (NASDAQ:CCBG), it's insightful to consider the company's financial performance and market position. InvestingPro data shows a robust market capitalization of $601.93 million, which is reflective of the company's stability in the financial sector. The bank's P/E ratio stands at 11.9, offering a perspective on its current valuation relative to its earnings, with a slight increase to 12.13 over the last twelve months as of Q2 2024.
From a growth standpoint, Capital City Bank Group has witnessed a revenue growth of 6.28% over the same period, underscoring its ability to expand its financial base. This is coupled with a notable operating income margin of 27.94%, which is indicative of the company's efficacy in managing its operations profitably. Moreover, the bank's commitment to shareholder returns is evident, with a dividend yield of 2.36% and a noteworthy dividend growth of 16.67% over the last twelve months as of Q2 2024.
InvestingPro Tips highlight several key points that investors may find relevant. Notably, Capital City Bank Group has raised its dividend for 10 consecutive years and has maintained dividend payments for 11 consecutive years, showcasing its consistency in rewarding shareholders. Additionally, analysts predict the company will be profitable this year, a sentiment supported by the company's past performance, having been profitable over the last twelve months. For more in-depth analysis and additional InvestingPro Tips, users can explore the dedicated page for Capital City Bank Group at https://www.investing.com/pro/CCBG, which lists a total of 11 tips for prospective and current investors.
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