Corey Chambas, CEO of First Business Financial (NASDAQ:FBIZ) Services, Inc. (NASDAQ:FBIZ), recently sold 40,000 shares of the company's common stock. The shares were sold at a weighted average price of $48.8122, resulting in a total transaction value of approximately $1.95 million. Following this transaction, Chambas retains direct ownership of 112,750 shares. Additionally, he holds 16,992 shares indirectly through a 401(k) plan. The sales were executed in multiple transactions with prices ranging from $48.58 to $49.015 per share.
In other recent news, First Business Financial Services demonstrated robust financial performance with earnings of $1.23 per share, surpassing expectations. This was primarily due to strong pre-provision net revenue, a reduced provision for credit losses, and a lower tax rate. In response to this performance, both DA Davidson and Keefe, Bruyette & Woods upgraded the stock and increased the price target to $50 and $51, respectively.
On another note, the company issued $20 million in subordinated debentures with a 7.5% fixed interest rate, set to mature in 2034. The proceeds will be used to repay outstanding debt and support future loan growth, aligning with the company's strategy to manage its capital requirements and growth objectives.
In addition, Piper Sandler adjusted its outlook on First Business Financial Services, raising the price target to $53.00, while maintaining an Overweight rating. The firm's outlook included a revised EPS forecast for 2024 and 2025, with a new 2026 EPS estimate of $6.00. Amid these developments, First Business Financial Services also kept its quarterly cash dividend at $0.25 per common share, indicating a stable return for its investors.
InvestingPro Insights
While CEO Corey Chambas's recent stock sale might raise eyebrows, a closer look at First Business Financial Services, Inc. (NASDAQ:FBIZ) reveals a company with strong fundamentals and positive market performance. According to InvestingPro data, FBIZ has a market capitalization of $400.23 million and trades at a P/E ratio of 10.52, suggesting a relatively attractive valuation compared to its peers.
InvestingPro Tips highlight that FBIZ has raised its dividend for 12 consecutive years and has maintained dividend payments for 20 consecutive years. This consistent dividend growth, coupled with a current dividend yield of 2.0%, underscores the company's commitment to shareholder returns. The stock has also demonstrated impressive performance, with a 60.3% total return over the past year and a significant 45.77% return in the last six months.
Despite Chambas's stock sale, the company's financial health appears robust. FBIZ reported revenue of $140.24 million in the last twelve months, with a solid operating income margin of 36.4%. These figures, along with the fact that three analysts have revised their earnings upwards for the upcoming period, suggest a positive outlook for the company's near-term performance.
For investors seeking more comprehensive analysis, InvestingPro offers 13 additional tips for FBIZ, providing a deeper understanding of the company's financial position and market prospects.
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