Director ups stake by 11 percent.
Edward Muransky, a director at Farmers National Bancorp (BANC), recently added 2,900 shares. The buy increased his holdings by 11 percent, and came at a cost of over $46,000.
He’s been joined by another director, the CEO, and two Vice Presidents this month. They have picked up anywhere from $500 to a few thousand dollars in shares.
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Insider data at the bank over the past three years show steady insider buys, with only a handful of sales back in 2018.
Farmers National operates 39 locations in Ohio and two in Pennsylvania. Shares are up 17 percent in the past year.
Action to take: We like seeing insider buying by a mix of C-suite executives as well as directors. While the dollar amounts are small with some of these insider buys, as a smaller bank, they’re not a concern.
Additionally, shares look attractive at 11 times forward earnings and the 32 percent profit margin the bank currently has.
The one caveat is book value, which is a bit high at 1.5 percent. This is a level where there wouldn’t likely be much upside in the event of an acquisition, compared to a bank trading near or below its book value.
Patient investors can likely get shares at or under $15.50, where the company would also offer a 2.5 percent dividend yield.
Given the limited number of options trades available on this bank, traders would be best to look to one of the larger players in the industry.