First business EVP Meloy sells $200k in stock

First Business Financial (NASDAQ:FBIZ) Services, Inc. (NASDAQ:FBIZ) Executive Vice President (EVP) Mark J. Meloy has recently sold a significant amount of company stock. On August 12, Meloy sold 5,000 shares of First Business Financial Services stock at a weighted average price of $40.0534 per share, totaling approximately $200,267.

The transaction was disclosed in a regulatory filing with the Securities and Exchange Commission (SEC). It was noted that the shares were sold at varying prices ranging from $40.00 to $40.4050. The EVP, after this sale, continues to hold 53,605 shares in the company, which are directly owned.

Investors often monitor insider transactions as they can provide insights into how the company’s executives view the stock’s value and its prospects. Although the reasons for an executive's decision to sell shares can vary, and may not necessarily reflect a negative outlook on the company, such transactions are closely watched for the signals they may offer.

The company, headquartered in Madison, Wisconsin, operates in the state commercial banks sector and has a fiscal year end on December 31.

The SEC filing also included a statement that Meloy is prepared to provide further details regarding the specific number of shares sold at each price within the stated range upon request. This level of transparency is common in SEC filings and provides additional information for investors analyzing the transaction.

For those interested in the specifics of the transaction, the SEC filing is publicly available and provides the full details of the sale.

In other recent news, First Business Financial Services experienced a significant upgrade from DA Davidson, shifting its stock rating from Neutral to Buy. This decision is credited to the bank's consistent performance, ability to generate loan growth surpassing its peers, and a return on tangible common equity (ROTCE) near 15%. DA Davidson also raised the price target for First Business Financial from $36 to $50. The bank's unique approach to funding, including the use of wholesale deposits, and its diverse sources of fee income contributing 20% to its revenue, are seen as key factors in its success.

In addition, First Business Financial reported strong earnings of $1.23 per share, exceeding expectations due to a robust pre-provision net revenue (PPNR), a lower provision for credit losses, and a reduced tax rate. This positive financial performance led Keefe, Bruyette & Woods to increase its price target for the company to $51, while maintaining an Outperform rating on the stock.

Finally, the company experienced a 10% increase in loan growth on a linked quarter annualized basis, primarily driven by growth in commercial and industrial loans. These recent developments led to an increase in earnings estimates by 1% for 2024 and 2% for 2025. First Business Financial maintained its quarterly cash dividend at $0.25 per common share, indicating a stable return for its investors.

InvestingPro Insights

First Business Financial Services, Inc. (NASDAQ:FBIZ) has recently been in the news due to insider trading activity, with Executive Vice President Mark J. Meloy selling a notable number of shares. Investors looking to understand the broader financial context of FBIZ may consider the following InvestingPro Insights.

InvestingPro Data shows that First Business Financial Services has a market capitalization of $337.92 million and is trading at a P/E ratio of 8.73, which is relatively low, indicating that the company's shares could be undervalued based on its earnings. The company's revenue growth over the last twelve months as of Q2 2024 stands at 3.9%, with a more significant quarterly revenue growth of 10.22% in Q2 2024, suggesting a positive business momentum.

One of the InvestingPro Tips highlights that FBIZ has a high shareholder yield, which is a testament to its commitment to returning value to its shareholders. This is further supported by the company's impressive history of raising its dividend for 11 consecutive years, and maintaining dividend payments for 20 consecutive years. The current dividend yield stands at 2.48%, with a dividend growth of 9.89% over the last twelve months as of Q2 2024. This information is particularly relevant for income-focused investors who value consistent and growing dividend payments.

For investors seeking more in-depth analysis, there are additional InvestingPro Tips available, including insights on the company's P/E ratio in relation to near-term earnings growth, gross profit margins, and profitability predictions for the year. In total, there are 9 more InvestingPro Tips listed on https://www.investing.com/pro/FBIZ, offering a comprehensive look at First Business Financial Services' financial health and future prospects.

The company's next earnings date is scheduled for October 24, 2024, which will be a key event for investors to watch, as it may provide further insights into the company's financial trajectory and the potential impact on its stock price.

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