Sara Louise Faivre-Davis, a director at Federal Agricultural Mortgage Corp (NYSE:AGM), recently sold 1,500 shares of Class C Non-Voting Common Stock. The shares were sold at a weighted average price of $208.221, with individual transaction prices ranging from $207.87 to $208.57. This sale, which took place on November 8, 2024, resulted in a total transaction value of $312,331.
Following the sale, Faivre-Davis retains ownership of 1,725 shares, including 373 unvested restricted stock units scheduled to vest on March 31, 2025, contingent on her continued directorship with the company. The transaction occurred during an open trading window for employees and directors of Farmer Mac, as noted in the filing.
In other recent news, Farmer Mac reported strong third-quarter earnings for 2024, with a focus on renewable energy. The Federal Agricultural Mortgage Corporation disclosed a year-to-date revenue increase to $270 million, up by over $10 million from the previous year, and core earnings of $128 million. Despite a net decrease in outstanding business volume to $28.5 billion, the company managed to maintain financial stability and is well-capitalized with $850 million in cash and short-term instruments.
Farmer Mac also launched the STARS system to enhance operational efficiency and scalability. The company is optimistic about growth in the renewable energy segment and farm & ranch volumes, and a new securitization program is expected to boost capital efficiency.
However, a slight decline in core earnings was noted due to a $3.3 million provision for losses. The total allowance for losses increased to $21.9 million, influenced by new business volume and a single delinquent loan. Despite these challenges, Farmer Mac remains confident in its growth trajectory and capital cushion. These are some of the recent developments at Farmer Mac.
InvestingPro Insights
Following the recent stock sale by director Sara Louise Faivre-Davis, it's worth examining some key financial metrics and insights for Federal Agricultural Mortgage Corp (NYSE:AGM), also known as Farmer Mac.
According to InvestingPro data, Farmer Mac currently has a market capitalization of $2.3 billion and is trading at a price-to-earnings (P/E) ratio of 10.37. This relatively low P/E ratio suggests that the stock may be undervalued compared to its earnings potential. However, an InvestingPro Tip indicates that AGM is trading at a high P/E ratio relative to its near-term earnings growth, which investors should consider when evaluating the stock's valuation.
Notably, Farmer Mac has demonstrated strong financial performance and shareholder returns. The company has maintained dividend payments for 21 consecutive years and has raised its dividend for 13 consecutive years, as highlighted by InvestingPro Tips. This consistent dividend history reflects the company's financial stability and commitment to returning value to shareholders. The current dividend yield stands at 2.64%, which may be attractive to income-focused investors.
The stock's recent performance has been particularly impressive, with a 9.61% return over the last week and a 14.52% return over the last month. These strong short-term returns align with the InvestingPro Tip indicating that AGM is trading near its 52-week high, with the current price at 97.48% of its highest point over the past year.
For investors seeking more comprehensive analysis, InvestingPro offers additional insights, with 11 more tips available for Farmer Mac. These tips can provide a deeper understanding of the company's financial health and market position.
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