In a recent transaction reported to the Securities and Exchange Commission, Maureen M. Gathagan, a director at Mid Penn Bancorp Inc. (NASDAQ:MPB), purchased 1,695 shares of the company's common stock. The shares were acquired at a price of $29.50 each, amounting to a total transaction value of $50,002. Following this acquisition, Gathagan's direct ownership in the company increased to approximately 10,164 shares.
Additionally, Gathagan holds 999 shares of Mid Penn Bancorp's restricted stock, which are set to vest fully on the first anniversary of the grant date. This acquisition was facilitated through the company's Dividend Reinvestment Plan, as noted in the filing.
In other recent news, Mid Penn Bancorp has announced a public offering of 2,375,000 shares of common stock at a price of $29.50 per share, aiming to raise $70 million. The offering, managed by Stephens Inc. and Piper Sandler & Co., is expected to net approximately $67 million, which will be used to support the bank's growth initiatives. This is part of the bank's strategy to strengthen its financial position and expand its services.
Additionally, Mid Penn Bancorp's earnings per share (EPS) for the third quarter of 2024 were reported at $0.74, surpassing both analysts' and consensus estimates. This was mainly due to higher-than-expected net interest income and fee income. The bank's pre-provision net revenue (PPNR) also exceeded initial forecasts after adjustments for certain expenses.
Piper Sandler, a financial services firm, has upgraded its price target for Mid Penn Bancorp shares to $35.00, maintaining an Overweight rating. This follows the bank's strong performance in the second quarter, where it reported an EPS of $0.71, again beating estimates. Despite not engaging in any share repurchases, Mid Penn Bancorp reported higher capital levels for the quarter. These are some of the recent developments surrounding Mid Penn Bancorp.
InvestingPro Insights
The recent insider purchase by director Maureen M. Gathagan aligns with several positive indicators for Mid Penn Bancorp Inc. (NASDAQ:MPB). According to InvestingPro data, the company's stock has shown strong performance, with a 58.55% total return over the past year and an impressive 47.94% return in the last six months. This upward trend is reflected in an InvestingPro Tip highlighting the company's "Strong return over the last three months."
Mid Penn Bancorp's financial health appears robust, with a price-to-earnings (P/E) ratio of 10.73, suggesting the stock may be undervalued relative to its earnings. This is further supported by an InvestingPro Tip indicating that the company is "Trading at a low P/E ratio relative to near-term earnings growth." The bank's commitment to shareholder value is evident in its dividend policy, with an InvestingPro Tip noting that MPB "Has maintained dividend payments for 14 consecutive years." The current dividend yield stands at 2.58%, providing a steady income stream for investors like Gathagan who participate in the Dividend Reinvestment Plan.
For readers interested in a deeper analysis, InvestingPro offers 10 additional tips for Mid Penn Bancorp, providing a comprehensive view of the company's financial position and market performance.
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