Andy Waters, an EVP at Community Trust Bancorp (CTBI), recently bought 10,000 shares. The buy increased his stake by 71%, and came to a total cost of $322,700.
This marks the first insider buy since January, when several executives bought shares. That includes a 10,033 buy from another EVP, for just over $324,000, and a director bought 2,129 shares for $84,205. There have been a few inside sales as well, but buyers have far outnumbered sellers over the past two years.
Overall, CTBI insiders own 3.2% of shares.
The Kentucky-based regional bank is up 34% over the past 12 months, following the banking crisis that knocked many bank stocks down last spring.
CTBI has remained profitable even with high interest rates and low consumer banking demand over the last year. Earnings rose by 1%, and revenues inched higher by 6%.
Action to take: CTBI trades at a reasonable 11 times earnings, and could see those earnings improve as interest rates come down later this year.
Plus, at current prices, CTIB also pays a 3.7% dividend, offering further returns for today’s investors.
For traders, options are somewhat limited. The December $50 calls are already slightly in-the-money. Last trading for about $2.55, a rally through the end of the year could see a high double-digit percentage return on the trade.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.