Mark Guthrie Anderson, a director at Burke & Herbert Financial Services Corp. (NASDAQ:BHRB), recently made significant purchases of the company's common stock. According to a recent SEC filing, Anderson acquired a total of 1,200 shares on October 29, 2024. The transactions were executed at prices ranging from $64.065 to $64.2399 per share, amounting to a total investment of $77,035.
Following these transactions, Anderson now holds 19,400 shares in the company. These acquisitions reflect Anderson's continued interest in increasing his stake in Burke & Herbert Financial Services, a national commercial bank headquartered in Alexandria, Virginia.
In other recent news, Burke & Herbert Financial Services Corp. reported its third-quarter financial results, marking the first full quarter since its merger with Summit Financial Group (NASDAQ:SMMF), Inc. The company declared an increased regular cash dividend of $0.55 per share, a 3.8% rise from the previous quarter. The financial institution also reported a net income applicable to common shares of $27.4 million, with earnings per diluted common share (EPS) at $1.82. After adjustments for non-GAAP considerations, the operating net income applicable to common shares stood at $29.8 million, translating to an adjusted diluted EPS of $1.98.
Continuing with the company's financial health, net interest income for the quarter was $73.2 million, with a net interest margin on a fully taxable equivalent basis (non-GAAP) of 4.07%. The company ended the quarter with a robust balance sheet, including total liquidity, available borrowing capacity, at $2.6 billion. Total gross loans were $5.6 billion, and total deposits reached $6.6 billion, resulting in a loan-to-deposit ratio of 84.4%.
In other developments, analysts from DA Davidson initiated coverage on Burke & Herbert Financial Services Corp. with a Buy rating and a price target of $76. They anticipate the merger will accelerate both asset and earnings growth for the company, with a forecast of rapid EPS growth over the coming years. The analysts expect the bank to outperform its peers with a return on assets (ROA) of 1.45% and a return on tangible common equity (ROTCE) of 16.5% by 2025.
InvestingPro Insights
Mark Guthrie Anderson's recent purchase of Burke & Herbert Financial Services Corp. (NASDAQ:BHRB) shares aligns with several positive indicators highlighted by InvestingPro. The company's stock has shown impressive performance, with a 48.25% total return over the past year, suggesting strong investor confidence.
InvestingPro data reveals that BHRB has a market capitalization of $958.23 million and is currently trading at a P/E ratio of 39.87. This relatively high earnings multiple, as noted in an InvestingPro Tip, could indicate that investors are pricing in future growth expectations.
Another InvestingPro Tip points out that BHRB has maintained dividend payments for 18 consecutive years, which may be particularly appealing to income-focused investors like Anderson. The current dividend yield stands at 3.44%, offering a steady income stream alongside potential capital appreciation.
It's worth noting that analysts are optimistic about BHRB's prospects, with InvestingPro Tips indicating that both net income and sales are expected to grow this year. This positive outlook could be a factor in Anderson's decision to increase his holdings.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for BHRB, providing deeper insights into the company's financial health and market position.
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