In a recent transaction, Theodore W. Mowery, a director at Mid Penn Bancorp Inc. (NASDAQ:MPB), has purchased shares of the company's common stock. The transaction, which took place on March 28, involved Mowery acquiring 100 shares at a price of $20.01 each, amounting to a total investment of $2,001.
This purchase was made through the Director Stock Purchase Plan, as indicated in the footnotes of the filing. Additionally, the report shows that Mowery's balance includes shares acquired through the Dividend Reinvestment Plan, highlighting his ongoing commitment to the company.
The acquisition adds to Mowery's already significant holdings in Mid Penn Bancorp, which include direct and indirect ownership. Following this transaction, Mowery directly owns 31,640.373 shares of common stock. He also has indirect ownership through an IRA with 21,198.307 shares and 250 shares owned by his spouse. Moreover, Mowery holds 1,760 shares of Mid Penn Bancorp, Inc. Common Restricted Stock, which are set to vest on the first anniversary of the grant date.
Investors often keep an eye on insider transactions such as these, as they can provide insights into the executives' confidence in the company's future performance. Transactions by directors and other insiders can be a valuable indicator for the investment community.
Mid Penn Bancorp, headquartered in Harrisburg, Pennsylvania, operates as a state commercial bank and serves its community through various financial services. The company's activity in the stock market, including insider purchases like that of Mowery, is closely watched by shareholders and potential investors alike.
InvestingPro Insights
Amidst the recent insider transaction at Mid Penn Bancorp Inc. (NASDAQ:MPB), there are several key indicators that might interest investors. With a market capitalization of $332.14 million, the company's valuation appears modest relative to its financial performance. Notably, Mid Penn Bancorp has demonstrated a commitment to shareholder returns, maintaining dividend payments for an impressive 14 consecutive years. This could be a reassuring sign for investors looking for stable income streams, especially with the current dividend yield standing at a robust 4.0%.
From a valuation standpoint, Mid Penn Bancorp's P/E ratio, as of the last twelve months ending Q4 2023, stands at 7.51, suggesting that the company's shares might be undervalued when compared to the broader market. Despite a slight revenue decline in the last twelve months, Mid Penn Bancorp remains profitable, with InvestingPro Tips indicating that analysts predict profitability for the current year. This is corroborated by an operating income margin of 35.63%, reflecting efficient operations.
Investors may also take note of the recent share price movement. While the price has experienced a significant drop of 16.77% over the last three months, this could present a buying opportunity, especially considering that the company's fair value is estimated at $20.64 according to InvestingPro's metrics, closely aligning with the recent purchase price of $20.01 by director Theodore W. Mowery.
For those seeking more in-depth analysis, InvestingPro offers additional insights and metrics. As of now, there are more tips available on InvestingPro, which can be accessed at: https://www.investing.com/pro/MPB. To enhance your investing strategy with these expert insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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