Amalgamated Financial Corp. (NASDAQ:AMAL) recently witnessed a series of stock sales by Workers United, a significant shareholder. Over the course of four days, Workers United sold a total of 165,491 shares of Amalgamated Financial Corp., amounting to approximately $6.08 million. The shares were sold at prices ranging from $35.7695 to $37.2278.
The transactions were disclosed in a regulatory filing with the Securities and Exchange Commission and involved multiple entities within Workers United, including the Western States Regional Joint Board, Workers United Canada Council, Southern Region Workers United/SEIU, and the Southwest Regional Joint Board. These sales reduced their collective ownership to 7,379,083.93 shares following the transactions.
The sales reflect ongoing portfolio adjustments by Workers United, who remains a ten percent owner of Amalgamated Financial Corp. Despite the sales, the organization continues to hold a substantial stake in the company.
In other recent news, Amalgamated Financial reported a robust third-quarter growth for 2024, with a significant increase in deposits and loans. The company's net income reached $27.9 million, or $0.90 per diluted share, while core net income stood at $28 million, or $0.91 per diluted share. Deposits climbed to a total of $7.6 billion, with notable loan growth of 2.7% focused on commercial, industrial, and sustainable lending.
The Tier 1 leverage ratio improved to 8.63%, and Amalgamated Financial revised its full-year guidance upward, indicating growth opportunities, particularly in sustainable banking. The company projects stable charge-off rates in the mortgage market, with potential improvements as interest rates decline.
The firm aims to maintain an $8.35 billion balance sheet size by year-end. However, share repurchases are likely paused until the Tier 1 leverage ratio of 9% is achieved. Furthermore, expenses are projected to remain elevated in Q4, including some one-time costs.
Amalgamated Financial's Q3 performance reflects a commitment to growth and sustainability, with a strategic approach to maturing below-market loans and focusing on higher-yielding options. The bank aims to play a pivotal role in financing the transition to a net-zero emissions economy in the U.S. Further details are expected to be shared at the upcoming Investor Day.
InvestingPro Insights
While Workers United has reduced its stake in Amalgamated Financial Corp. (NASDAQ:AMAL), the company's financial metrics and market performance suggest a strong position. According to InvestingPro data, AMAL's market capitalization stands at $1.12 billion, with a P/E ratio of 10.66, indicating a potentially undervalued stock relative to earnings.
The company's recent performance has been particularly noteworthy. InvestingPro Tips highlight that AMAL has shown a strong return over the last three months, with price data confirming a 28.24% total return in this period. Even more impressive is the 74.55% total return over the past year, suggesting robust investor confidence despite the recent insider sales.
Financially, AMAL appears solid with a revenue of $303.03 million in the last twelve months as of Q3 2023, representing a 12.76% growth. The company's profitability is also noteworthy, with an operating income margin of 49.97% for the same period.
For income-focused investors, it's worth noting that AMAL has raised its dividend for 3 consecutive years, as per InvestingPro Tips. The current dividend yield stands at 1.31%, with a 20% dividend growth in the last twelve months.
These insights provide context to the recent insider sales, suggesting that despite the reduction in Workers United's stake, AMAL continues to demonstrate strong financial performance and market appeal. Investors seeking more comprehensive analysis can access additional InvestingPro Tips, with 8 more tips available on the InvestingPro platform.
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