Mitchell A. Johnson, a director at Federal Agricultural Mortgage Corp (NYSE:AGM), recently sold 500 shares of the company's Class C Non-Voting Common Stock. The shares were sold at a price of $210 each, resulting in a total transaction value of $105,000. Following this transaction, Johnson holds 12,560 shares, which includes 373 unvested restricted stock units scheduled to vest on March 31, 2025, contingent on his continued service as a director. The transaction occurred during an open trading window for employees and directors of the company.
In other recent news, Farmer Mac reported a robust third quarter with a year-to-date revenue increase to $270 million, up over $10 million from the previous year. The company also highlighted a strategic shift to higher-yielding segments, notably renewable energy. Core earnings for the period rose to $128 million and new business volume for the quarter stood at $2 billion. Despite a modest decline in core earnings due to a $3.3 million provision for losses, core earnings net of credit increased by 6% year-over-year.
The company launched the STARS system to enhance operational efficiency and scalability. Farmer Mac also embarked on a new securitization program aimed at improving capital efficiency. Management expressed optimism about growth in the Renewable Energy segment and Farm & Ranch volumes, despite acknowledging the challenges of tariffs and a strong dollar on U.S. agricultural trade.
These recent developments underscore Farmer Mac's successful pivot towards more lucrative segments and its ability to maintain financial stability amid market fluctuations. The company remains well-capitalized with strong liquidity, holding $850 million in cash and short-term instruments.
InvestingPro Insights
As Mitchell A. Johnson reduces his stake in Federal Agricultural Mortgage Corp (NYSE:AGM), investors may find value in examining the company's financial health and market position. According to InvestingPro data, AGM boasts a market capitalization of $2.24 billion and a price-to-earnings ratio of 10.11, suggesting a potentially attractive valuation relative to its earnings.
InvestingPro Tips highlight AGM's strong dividend history, having maintained dividend payments for 21 consecutive years and raised them for 13 years straight. This commitment to shareholder returns is further underscored by the current dividend yield of 2.7% and an impressive dividend growth of 27.27% over the last twelve months.
The company's financial performance appears robust, with a gross profit margin of 100% and an operating income margin of 71.94% for the last twelve months as of Q3 2024. These figures indicate AGM's efficiency in generating profits from its operations.
It's worth noting that AGM has demonstrated strong returns over both the long and medium term. The stock has delivered a 27.82% total return over the past year and is currently trading at 94.68% of its 52-week high, suggesting investor confidence in the company's prospects.
For readers interested in a deeper analysis, InvestingPro offers 8 additional tips on AGM, providing a more comprehensive view of the company's financial health and market position.
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