Five Star Bancorp director sells $68,168 in company stock

In a recent transaction, Robert Truxtun Perry-Smith, a Director at Five Star Bancorp (NASDAQ:FSBC), sold 2,310 shares of the company's common stock. The shares were sold at a price of $29.51 each, amounting to a total value of $68,168.

The sale took place on August 29, 2024, as reported in a Form 4 document filed with the Securities and Exchange Commission. Following the transaction, Perry-Smith still holds a substantial number of shares in the company, with a total of 225,328 shares remaining in his possession. It should be noted that this figure includes 1,638 unvested shares granted under the Five Star Bancorp 2021 Equity Incentive Plan. These shares are set to vest on December 31, 2024, contingent upon Perry-Smith's continued service as a director of the bank.

The shares sold by Perry-Smith are held in the Robert T. Perry-Smith Exemption Trust, where he serves as the trustee, ensuring that the benefits of the trust are directed to him.

This transaction was signed off by Heather C. Luck, acting as Attorney-in-Fact for Perry-Smith, and the details were made public the following day, on August 30, 2024.

Investors often monitor insider transactions as they may provide insights into the company's performance and the confidence that executives and directors have in the firm's prospects. However, it's important to consider that insider sales can occur for various reasons and may not necessarily reflect a negative outlook.

In other recent news, Five Star Bancorp has posted positive results for the second quarter of 2024, with a net income of $10.8 million and operational earnings per share of $0.51, slightly exceeding market predictions. The company has also completed a successful public offering, adding almost 4 million shares and securing around $80.9 million in net proceeds. This follows the company's robust growth in loans and deposits, reported at 21% and 23% respectively.

Financial services firm Stephens has responded to these developments by upgrading the price target for Five Star Bancorp to $32.00, while maintaining an Overweight rating. The firm attributes this to the company's impressive growth outlook and differentiation in the market, despite a slight reduction in the operational EPS forecast for 2025.

Further, Five Star Bancorp has expanded its team in San Francisco, a move that has been instrumental in accelerating deposit growth. The company also experienced a significant improvement in its margin, which is expected to moderate in the third quarter. The analysts at Stephens anticipate that the rise in loan yields will be largely balanced by the costs associated with brokered funding.

In addition to these developments, Five Star Bancorp has been making strategic expansion efforts, particularly in the San Francisco Bay Area. This includes the hiring of five seasoned professionals and an increase in non-wholesale deposits by $118.3 million. However, the company anticipates lower gains on sales of SBA loans and an increase in the expense run rate in the coming quarters. These recent developments highlight Five Star Bancorp's strong financial position and strategic growth initiatives.

InvestingPro Insights

Five Star Bancorp (NASDAQ:FSBC) has shown notable market activity recently, with a Director of the company, Robert Truxtun Perry-Smith, selling a portion of his shares. Investors tracking insider transactions may find additional context in the company's financial performance and market valuation. As of the last twelve months leading up to Q2 2024, Five Star Bancorp has a market capitalization of $619.55 million, with a price-to-earnings (P/E) ratio that stands at 14.3, indicating how much investors are willing to pay for a dollar of earnings.

Despite this sale, the company's stock has experienced a strong return over the last three months, with a 29.82% total return, signaling investor confidence. This aligns with one of the InvestingPro Tips highlighting the company's strong performance in the recent quarter. Additionally, Five Star Bancorp has been profitable over the last twelve months, which is further supported by analysts' predictions that the company will remain profitable this year. This is particularly relevant given Perry-Smith's insider sale, as profitability can be a reassuring factor for potential investors.

For those interested in dividend returns, Five Star Bancorp has raised its dividend for three consecutive years, with a current dividend yield of 2.74%. This could be an attractive point for income-focused investors, as noted in another InvestingPro Tip. For more detailed analysis and additional InvestingPro Tips, investors can visit the company's page on InvestingPro, which currently lists six more tips to help in making informed decisions.

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