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In a recent transaction, Paulette Lemon, Executive Vice President - Retail Banking Director at HomeStreet, Inc. (NASDAQ:HMST), sold a notable amount of company stock. The transaction, which took place on August 30, 2024, involved the sale of 2,401.226 shares at a price of $15.5902 per share, totaling approximately $37,435.
This sale left Lemon with zero shares held in the HomeStreet, Inc. 401(k) Savings Plan, as indicated in the transaction details. However, separate from the 401(k) plan, Lemon still retains ownership of 16,923.2 shares of HomeStreet common stock directly.
The transaction was made public through a Form 4 filing with the Securities and Exchange Commission, which was filed on September 4, 2024. It's noteworthy that participants in HomeStreet Inc .'s 401(k) Savings Plan have the authority to direct the voting of shares they hold within the plan, as highlighted in the footnotes of the document.
Investors often monitor insider transactions such as Lemon's for insights into executive sentiment towards their company's stock. While the reasons for Lemon's sale are not disclosed in the filing, the transaction adds to the public record of insider trades at HomeStreet.
In other recent news, HomeStreet Inc. and FirstSun Capital Bancorp (NASDAQ:CBNK) have made significant changes to their merger agreement. The modification, which resulted in a reduction of $30.5 million in consideration for HomeStreet shareholders, was attributed to HomeStreet's decreased profitability due to rising interest rates. This represents an 11% decrease from the initial agreement. Blue Lion Capital, a shareholder of HomeStreet, has publicly addressed the company's board about this issue, attributing the reduction largely to HomeStreet CEO Mark Mason's decision not to hedge against interest rate risks.
In a recent non-binding shareholder vote, HomeStreet's shareholders opposed Change in Control payments totaling $19.6 million to Mason and other executives. Blue Lion Capital has encouraged shareholders to voice their opposition to these payments, emphasizing the board's responsibility to its shareholders. Meanwhile, HomeStreet's shareholders have approved the merger with FirstSun Capital Bancorp, marking a significant step towards finalizing the deal, pending regulatory approval.
In the realm of analyst notes, Keefe, Bruyette & Woods has reduced its price target for HomeStreet shares, maintaining a Market Perform rating. This revision came after HomeStreet's Q1 2024 earnings fell short of expectations. The firm has adjusted its earnings per share estimates for HomeStreet, projecting a loss per share in 2024 and a profit per share in 2025. These recent developments reflect the ongoing evolution of HomeStreet's financial landscape.
InvestingPro Insights
With the recent insider transaction at HomeStreet, Inc. (NASDAQ:HMST), investors are keen to understand the company's financial health and future prospects. According to InvestingPro data, HomeStreet's market capitalization stands at $292.29 million. The company's performance over the last year has been notable, with a strong return of 56.65%, reflecting a near-peak price of 96.27% of its 52-week high. Despite these gains, the company has faced challenges, as indicated by a significant sales decline of 28.09% over the last twelve months as of Q2 2024.
Two InvestingPro Tips shed light on HomeStreet's current situation. Analysts have recently revised their earnings downwards for the upcoming period, signaling potential concerns about the company's profitability. Furthermore, they do not anticipate the company will be profitable this year, which aligns with the negative P/E ratio of -19.65. These metrics suggest that while the stock has performed well in terms of returns, underlying financials may present a more complex picture.
For investors looking for more in-depth analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/HMST. These tips could offer valuable insights into HomeStreet's performance and help investors make more informed decisions.
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