Carol Sanders, a director at First Business Financial (NASDAQ:FBIZ) Services, Inc. (NASDAQ:FBIZ), recently acquired additional shares of the company's common stock. According to a filing submitted to the Securities and Exchange Commission, Sanders purchased a total of 134 shares on October 30. The shares were bought at prices ranging from $44.70 to $44.9736 per share, amounting to a total investment of $5,998.
Following these transactions, Sanders now holds 11,136 shares directly. Additionally, 8,211 shares are held through her SEP IRA, as noted in the filing. This recent acquisition reflects an increased stake in the company by Sanders, who serves on the board of directors.
In other recent news, First Business Financial Services reported robust earnings of $1.23 per share, surpassing expectations due to strong pre-provision net revenue, a decreased provision for credit losses, and a reduced tax rate. This impressive financial performance led to upgrades from DA Davidson and Keefe, Bruyette & Woods, with the former raising their rating from Neutral to Buy and the latter maintaining an Outperform rating. The company also issued $20 million in subordinated debentures with a 7.5% fixed interest rate, set to mature in 2034, to repay outstanding debt and support future loan growth.
Piper Sandler praised First Business Financial Services for its solid quarter, highlighting the company's strong organic balance sheet growth and net interest margin stability. The firm's confidence in the company is further strengthened by its projections for superior operating leverage, which is expected to result in above-average earnings per share and tangible book value growth by 2025. Amid these developments, First Business Financial Services saw a 10% increase in loan growth, primarily driven by commercial and industrial loans.
These recent developments reflect First Business Financial Services' strategic approach to managing its capital requirements and growth objectives. The company's ability to maintain stability and growth despite potential market fluctuations has been commended by analysts. As a testament to its commitment to providing stable returns for its investors, First Business Financial Services has maintained its quarterly cash dividend at $0.25 per common share.
InvestingPro Insights
Carol Sanders' recent purchase of First Business Financial Services, Inc. (NASDAQ:FBIZ) shares aligns with several positive indicators highlighted by InvestingPro. The company's stock has shown strong performance, with a 34.47% price total return over the past six months and a 46.96% return over the last year. This upward trend suggests that Sanders' investment decision may be well-timed.
InvestingPro Tips reveal that FBIZ has maintained dividend payments for 20 consecutive years and has raised its dividend for 12 consecutive years. This consistent dividend history, coupled with a current dividend yield of 2.28%, may be attractive to investors seeking stable income. The company's P/E ratio of 9.27 indicates that the stock may be undervalued relative to its earnings, potentially offering a good entry point for investors like Sanders.
It's worth noting that FBIZ has been profitable over the last twelve months, with a revenue of $140.24 million and an operating income margin of 36.4%. These solid financial metrics support the company's ability to sustain its dividend payments and potentially fuel future growth.
For investors interested in a deeper analysis, InvestingPro offers additional tips and insights. Currently, there are 8 more InvestingPro Tips available for FBIZ, providing a comprehensive view of the company's financial health and market position.
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