Guaranty Bancshares director sells over $182k in company stock

In a recent transaction on August 1, James S. Bunch, a director of Guaranty Bancshares Inc . (NASDAQ:NYSE:GNTY), sold 5,643 shares of the company's common stock. The shares were sold at a weighted average price of $32.28, totaling approximately $182,156.

The sale was executed in multiple trades with prices ranging from $32.27 to $33.22. Following the transaction, Bunch's direct ownership in the company stands at 160,357 shares. The details of the transaction, including the exact number of shares sold at each price point, have been made available to the SEC staff, the issuer, and security holders of the issuer upon request.

This financial move by a key member of Guaranty Bancshares Inc.'s board is of interest to investors who closely monitor insider activities as indicators of a company's financial health and future performance. Such transactions are publicly reported to ensure transparency and maintain investor confidence in the market.

Guaranty Bancshares, based in Texas, operates as the holding company for Guaranty Bank & Trust, providing banking and financial services to its customers. As with any insider transaction, investors will be keen to understand the context and reasoning behind Bunch's decision to adjust his stake in the company.

In other recent news, Guaranty Bancshares reported its second-quarter financial results, surpassing consensus forecasts due to net interest margin (NIM) expansion, a decrease in loan balances, and a negative loan loss provision expense. This strong performance led to an increase in the company's price target by Stephens, up from the previous $34.00 to $36.00. However, Piper Sandler, another financial firm, adjusted its outlook on Guaranty Bancshares, reducing its price target from $34 to $30 based on changes in earnings estimates for 2024 and 2025.

The company introduced a new executive compensation plan, the Executive Officer Long Term Incentive Compensation Plan, aimed at providing annual bonus opportunities to selected executive officers based on the company's performance against pre-established metrics. This plan was approved by the company's board and is designed to incentivize and retain key leadership.

Guaranty Bancshares also reported Q1 results, indicating a slight decrease in total assets and liabilities but an increase in net interest margin and non-interest income, resulting in a net income of $6.7 million for the quarter. The bank has expressed interest in potential mergers and acquisitions, aiming to improve its net interest margin to a long-term target of 3.50%. These recent developments highlight the strategic decisions Guaranty Bancshares is making to maintain its financial health and position itself for future growth.

InvestingPro Insights

Following the recent insider transaction involving James S. Bunch, investors in Guaranty Bancshares Inc. (NASDAQ:GNTY) may find additional context through key metrics and insights from InvestingPro. The company's market capitalization stands at a robust $383.04 million, with a Price/Earnings (P/E) ratio of 14.73, which adjusts slightly downward to 14.0 when considering the last twelve months as of Q2 2024. This indicates a fair valuation relative to earnings.

Investors should note that Guaranty Bancshares has demonstrated a strong return over the last three months, with a price total return of 19.92%. This performance is mirrored in the company's dividend policy, with a consistent increase for 7 consecutive years and a current dividend yield of 2.78%. The dedication to returning value to shareholders is further underscored by a dividend growth of 4.35% over the last twelve months as of Q2 2024.

An InvestingPro Tip worth highlighting is that analysts have revised their earnings expectations upwards for the upcoming period, suggesting confidence in the company's future performance. Additionally, while the company has experienced a revenue decline of 8.83% over the last twelve months as of Q2 2024, its operating income margin remains strong at 28.47%, indicating effective management of operational costs.

For investors seeking a deeper dive into Guaranty Bancshares' financial health and future prospects, there are additional InvestingPro Tips available at InvestingPro. As of the latest update, there are 5 more tips that provide valuable insights into the company's financial nuances and analyst predictions.

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