Jill Bourland, a director at Isabella Bank Corp (OTC:ISBA), recently acquired additional shares in the company. According to a filing with the Securities and Exchange Commission, Bourland purchased approximately 8.20 shares of common stock on November 18, 2024, at a price of $24.40 per share. This transaction totals around $199. Following this purchase, Bourland now directly owns 4,880.73 shares of Isabella Bank.
In other recent news, Isabella Bank Corp's third-quarter earnings showed a 3% pre-provision net revenue increase, attributed to net interest margin expansion, according to Piper Sandler. The firm also noted the bank's robust organic balance sheet growth. Despite encountering elevated net charge-offs due to a one-off client event, Piper Sandler remains confident in Isabella Bank's credit metrics.
Piper Sandler subsequently upgraded its price target for Isabella Bank from $22.00 to $24.00, maintaining a neutral rating. The firm also raised its earnings per share estimates for the fourth quarter of 2024 and the full year 2025 to $0.49 and $2.40, respectively. An earnings per share estimate of $2.70 for 2026 was also established by Piper Sandler.
In other developments, Isabella Bank faces potential losses of approximately $1.6 million due to negative balances in deposit accounts associated with a single customer. The bank is currently evaluating potential credit losses. Furthermore, Isabella Bank continues to prioritize shareholder value, declaring a third-quarter cash dividend of $0.28 per common share, surpassing the peer average with a 5.6% dividend yield. These recent developments provide insights into the bank's financial performance and future expectations as per analysts' projections.
InvestingPro Insights
The recent insider purchase by Jill Bourland at Isabella Bank Corp (OTC:ISBA) aligns with several positive indicators highlighted by InvestingPro data. The stock has shown significant momentum, with a 16.23% return over the last month and an impressive 33.36% return over the past three months. This strong performance has pushed ISBA to trade near its 52-week high, with the current price at 100% of that peak.
Despite the recent price surge, Isabella Bank's valuation metrics suggest it may still offer value. The company's P/E ratio stands at 13.35, which is relatively modest, and its price-to-book ratio of 0.87 indicates that the stock might be undervalued relative to its book value. Additionally, the company boasts a healthy dividend yield of 4.48%, which could be attractive to income-focused investors.
InvestingPro Tips highlight that Isabella Bank has maintained dividend payments for 17 consecutive years, demonstrating a commitment to shareholder returns. This consistency in dividend payments could be a factor in Bourland's decision to increase her stake in the company.
It's worth noting that InvestingPro offers 11 additional tips for Isabella Bank Corp, providing investors with a more comprehensive analysis of the company's financial health and market position. These insights can be particularly valuable for those looking to make informed investment decisions in the banking sector.
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