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In a recent move that signals confidence in CITIZENS, INC. (NYSE:CIA), President and CEO Jon Stenberg acquired additional shares of the company's stock, investing approximately $7,545. The transactions, which took place over two days, saw the CEO purchase shares at prices ranging from $2.73 to $2.77.
On the first day, Stenberg bought 2,155 shares at $2.73 each, and on the following day, he added another 600 shares to his portfolio at $2.77 per share. These purchases have increased Stenberg's holdings to a total of 28,532 shares of CITIZENS, INC. Class A Common Stock.
CITIZENS, INC., a life insurance company with a SIC code of 6311, is incorporated in Colorado and has its business address in Austin, Texas. The company's Class A Common Stock is listed on the New York Stock Exchange under the ticker symbol CIA.
Investors often view stock purchases by company executives as a positive sign that leadership is confident in the firm's future prospects. Stenberg's recent acquisition of shares could be interpreted as such a vote of confidence, suggesting that the CEO believes in the company's value and potential growth.
The details of these transactions were disclosed in a Form 4 filing with the Securities and Exchange Commission, dated August 16, 2024, for the reporting period of August 14, 2024.
In other recent news, Citizens Inc. witnessed a mixed financial performance with a 6% rise in revenue in the second quarter of 2024, primarily due to an 85% surge in first-year premium. However, the company's earnings per share (EPS) experienced a 33% decline compared to the same period last year, largely due to increased expenses. Singular Research upgraded Citizens Inc.'s stock rating from Hold to Buy, maintaining a steady price target of $3.70.
As part of recent developments, Citizens Inc. has undergone a leadership transition with Jon Stenberg, the company's President since March 2024, taking over as the new Chief Executive Officer. This strategic move follows a substantial 61% year-over-year growth in insurance issued, amounting to $274.5 million in the first quarter of 2024, and a record $5 billion of insurance in force as of March 31, 2024.
Additionally, at the 2024 Annual Meeting of Shareholders, Citizens Inc. confirmed the election of directors, the ratification of Grant Thornton LLP as the company's independent registered public accounting firm for 2024, and the approval of executive compensation. Singular Research initiated coverage on Citizens Inc. with a Buy-Long Term rating, indicating a positive outlook for the company's growth prospects, with a price target of $3.50. These updates reflect the company's strategic initiatives, performance, and the confidence of shareholders in its governance and executive compensation practices.
InvestingPro Insights
Amidst the recent share purchases by CITIZENS, INC. (NYSE:CIA) CEO Jon Stenberg, which may indicate his belief in the company's potential, InvestingPro data provides a deeper look into the financial health and valuation of the company. With a market capitalization of $144.12 million, CITIZENS, INC. is trading at an earnings multiple of 6.56, which is considered low in the industry, suggesting that the stock might be undervalued relative to its earnings.
InvestingPro Tips highlight that, despite the CEO's confidence, analysts are expecting a decline in net income for the company this year. This contrasts with the company's performance over the last twelve months, where it was profitable, as reflected in the basic EPS (Continuing Operations) of $0.44. Additionally, CITIZENS, INC. does not offer dividends, which could influence investment decisions for those seeking regular income from their stock holdings.
Investors considering CITIZENS, INC. should note that the company's short-term obligations exceed its liquid assets, which may raise concerns about its immediate financial stability. However, the company's profitability over the last twelve months and the prediction by analysts that it will remain profitable this year could be reassuring signals. For those interested in exploring further, InvestingPro provides additional insights and metrics, which include 6 more InvestingPro Tips for CITIZENS, INC. available at https://www.investing.com/pro/CIA.
The company's revenue growth over the last twelve months was 3.43%, and the gross profit margin stood at a healthy 29.76%, indicating the company's ability to maintain profitability. The price of CITIZENS, INC. shares is currently at 78.86% of its 52-week high, with a previous close at $2.8, which is in the range of the CEO's recent share purchases. This data, coupled with the CEO's recent investment, could provide investors with a more comprehensive view of CITIZENS, INC.'s current market position and future potential.
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