John Leto, Executive Vice President and Head of Institutional Bank at Bancorp, Inc. (NASDAQ:TBBK), recently sold 51,000 shares of the company's common stock. The shares were sold at prices ranging from $56.85 to $58.84, totaling approximately $2.93 million. Following this transaction, Leto holds 154,770 shares directly. The sale was executed on November 13, 2024, as disclosed in a recent SEC filing.
In other recent news, The Bancorp (NASDAQ:TBBK), Inc. reported strong third-quarter earnings, marked by significant growth in its FinTech Solutions Group. The company recorded earnings of $1.04 per share, a 15% increase in Gross Dollar Volume from its FinTech operations, and a 22% rise in total fee growth. Furthermore, credit sponsorship balances experienced a substantial increase, reaching $280 million.
These recent developments also include a positive outlook for 2025, with The Bancorp providing preliminary guidance of $5.25 per share. The company aims to maintain robust capital levels while enhancing shareholder value. However, planned stock buybacks for 2025 have been reduced to $150 million due to potential debt repayment.
Analysts note a decline in the net interest margin to 4.78% from 4.97% in the previous quarter and concerns over elevated substandard multifamily loan assets. However, non-interest income rose to $32.1 million, a 20% increase from Q3 2023. The Bancorp remains optimistic about growth in its loan and payments businesses and is working on expanding its offerings.
InvestingPro Insights
The recent insider sale by John Leto comes at a time when The Bancorp, Inc. (NASDAQ:TBBK) is experiencing strong market performance. According to InvestingPro data, TBBK has seen a remarkable 64.17% price total return over the past six months, and a 23.39% return in the last three months alone. This upward trend is reflected in the stock's current price, which stands at 91.66% of its 52-week high.
Despite the impressive stock performance, InvestingPro Tips highlight that TBBK is trading at a low P/E ratio relative to its near-term earnings growth. With a P/E ratio of 13.56 and an adjusted P/E ratio of 12.63 for the last twelve months as of Q3 2024, the stock appears to be attractively valued considering its growth prospects.
It's worth noting that management has been aggressively buying back shares, which could be seen as a vote of confidence in the company's future. However, investors should be aware that TBBK does not pay a dividend to shareholders, as pointed out by another InvestingPro Tip.
For those interested in a deeper analysis, InvestingPro offers 11 additional tips for TBBK, providing a more comprehensive view of the company's financial health and market position.
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