Eugene Hunt, a director at Simmons First National Corp (NASDAQ:SFNC), recently reported selling 2,232 shares of the company's common stock. The shares were sold on November 14, 2024, at an average price of $24.58, amounting to a total transaction value of $54,862. After the sale, Hunt retains ownership of 30,391 shares in the company. This transaction was disclosed in a filing with the U.S. Securities and Exchange Commission.
In other recent news, Simmons First National Corporation announced a series of executive changes. CEO Robert "Bob" Fehlman will retire at the end of 2024, with George Makris, Jr., the current Executive Chairman, poised to take over as Chairman and CEO from January 1, 2025. Concurrently, Christopher Van Steenberg joins the company as the new Chief Operating Officer.
Simmons First National Corporation reported third-quarter earnings with an adjusted GAAP earnings per share (EPS) of $0.20, falling short of the consensus estimate of $0.33. This was attributed to significant items such as a $28.4 million loss from the sale of securities and approximately $0.4 million in non-core expenses. In response to these figures, Baird raised the price target for Simmons First National to $24, maintaining a neutral stance on the stock.
The bank has shown early success in repricing its deposits following the initial Federal Reserve rate cut. According to Baird, the bank's net interest margin (NIM) and net interest income (NII) are expected to improve due to strong asset and liability repricing tailwinds coupled with modest loan growth.
In addition, Simmons First National has undertaken strategic initiatives to manage deposit costs, which decreased ahead of a 50 basis point rate cut in September. The bank anticipates a stable net interest margin in the fourth quarter, with potential improvements in 2025 depending on Federal Reserve actions.
Simmons First National is also consolidating branches and reallocating savings towards revenue-generating initiatives, aiming for a reduction in core expenses. These are some of the recent developments that shape the current and future operations of Simmons First National Corporation.
InvestingPro Insights
The recent insider sale by Eugene Hunt at Simmons First National Corp (NASDAQ:SFNC) comes at a time when the company's stock has shown strong performance. According to InvestingPro data, SFNC has experienced a remarkable 55.14% price total return over the past year, with a particularly robust 35.97% return in the last six months. This upward trend is further supported by the stock trading at 93.87% of its 52-week high, indicating significant investor confidence.
Despite the positive price momentum, it's worth noting that SFNC's revenue growth has been negative, with a -15.07% decline in the last twelve months. This contrasts with the company's strong market performance and could be a point of consideration for investors.
InvestingPro Tips highlight that SFNC has maintained dividend payments for an impressive 51 consecutive years and has raised its dividend for 13 consecutive years. With a current dividend yield of 3.43%, this consistent dividend policy may be attractive to income-focused investors. Additionally, analysts remain optimistic, with four having revised their earnings upwards for the upcoming period.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for SFNC, providing a deeper understanding of the company's financial health and market position.
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