Amalgamated Financial Corp. (NASDAQ:AMAL) recently witnessed significant stock sales by major shareholders, according to a recent SEC filing. The transactions, collectively amounting to approximately $4.27 million, involved shares being sold at prices ranging from $32.6767 to $33.4142 per share.
The sales were conducted by several reporting owners, including the Western States Regional Joint Board, Workers United, and others. These entities are recognized as ten percent owners, indicating their substantial stake in the company. The transactions occurred over several days, with notable sales on October 31, November 1, and November 4, 2024.
Despite these sales, the reporting owners maintain a significant number of shares in Amalgamated Financial Corp., reflecting their ongoing investment in the company. The transactions were executed as part of routine portfolio management and do not necessarily indicate a change in the overall investment strategy.
In other recent news, Amalgamated Financial reported strong third-quarter results for 2024, with significant growth in deposits and loans. The net income reached $27.9 million, or $0.90 per diluted share, and core net income stood at $28 million, or $0.91 per diluted share. Deposits, including political and sustainable funds, climbed to a total of $7.6 billion, marking a $311 million increase.
Loan growth was notable at 2.7%, with a focus on commercial, industrial, and sustainable lending. The Tier 1 leverage ratio improved to 8.63%, with the company setting a goal to reach 9% in the near future. Amalgamated Financial revised its full-year guidance upward and remains optimistic about its growth opportunities, particularly in sustainable banking.
These developments come as the company projects stable charge-off rates in the mortgage market and expects political deposit outflows to taper at year-end. Amalgamated Financial aims to maintain an $8.35 billion balance sheet size by year-end. More updates are expected to be provided at the upcoming Investor Day.
InvestingPro Insights
Amalgamated Financial Corp. (NASDAQ:AMAL) has been demonstrating strong financial performance, which may provide context for the recent insider sales. According to InvestingPro data, the company's stock has shown impressive returns, with a 72.43% price total return over the past year and a 31.09% return over the last six months. This robust performance aligns with the InvestingPro Tip highlighting AMAL's "High return over the last year."
The company's valuation metrics are also noteworthy. AMAL is trading at a P/E ratio of 9.61, which is relatively low compared to its earnings growth potential. This is further supported by an InvestingPro Tip indicating that AMAL is "Trading at a low P/E ratio relative to near-term earnings growth." Additionally, the company's PEG ratio of 0.59 suggests that the stock may be undervalued relative to its growth prospects.
Investors should also note that Amalgamated Financial Corp. has been increasing its dividend, with an InvestingPro Tip revealing that the company "Has raised its dividend for 3 consecutive years." The current dividend yield stands at 1.46%, with a significant dividend growth of 20% in the last twelve months.
These insights provide a broader perspective on AMAL's financial health and market position, which may be valuable for investors interpreting the recent insider sales. For those seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for Amalgamated Financial Corp., providing a deeper understanding of the company's prospects and potential risks.
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