James Mason Burke, a director at Burke & Herbert Financial Services Corp. (OTC:BHRB), recently sold 2,000 shares of common stock, according to a regulatory filing. The shares were sold at a weighted average price of $64.2173, amounting to a total transaction value of approximately $128,434. Following this transaction, Burke's indirect holdings, managed as co-Trustee for The Burke Living Trust, now stand at 258,980 shares. Additionally, his direct holdings amount to 8,480 shares.
The sale price per share ranged from $63.91 to $64.435, as noted in the filing. This transaction reflects the correct adjustment of Burke's direct and indirect holdings, following a previous reporting error.
In other recent news, Burke & Herbert Financial Services Corp. reported its third-quarter financial results, marking the first full quarter since its merger with Summit Financial Group (NASDAQ:SMMF), Inc. The company declared an increased regular cash dividend of $0.55 per share, reflecting a 3.8% rise from the previous quarter. Net income applicable to common shares was $27.4 million, while the adjusted operating net income stood at $29.8 million.
The company's balance sheet remained strong, with total liquidity, including available borrowing capacity, at $2.6 billion at the quarter's end. Total gross loans were $5.6 billion, and total deposits reached $6.6 billion, signaling a loan-to-deposit ratio of 84.4%. Recent developments also include the initiation of coverage by DA Davidson, who gave the company a Buy rating with a price target of $76, citing increased profitability and growth due to the merger.
DA Davidson's analysis anticipates rapid earnings per share growth for Burke & Herbert Financial Services over the coming years, projecting a return on assets of 1.45% and a return on tangible common equity of 16.5% by 2025. These expectations are based on the bank's potential to succeed in its market and the anticipated growth in earnings.
InvestingPro Insights
Burke & Herbert Financial Services Corp. (OTC:BHRB) has been demonstrating strong financial performance, which adds context to the recent insider sale by director James Mason Burke. According to InvestingPro data, the company's revenue growth has been impressive, with a 54.16% increase in the last twelve months as of Q3 2024. Even more striking is the quarterly revenue growth of 217.92% in Q3 2024, indicating significant business expansion.
Despite the robust growth, InvestingPro Tips highlight that BHRB is trading at a high earnings multiple, with a P/E ratio of 40.34. This valuation metric suggests that investors have high expectations for the company's future performance. The stock's strong performance is further evidenced by its 44.39% price total return over the past year.
It's worth noting that BHRB has maintained dividend payments for 18 consecutive years, as pointed out by an InvestingPro Tip. This consistency in dividend payments, coupled with a current dividend yield of 3.5%, may be attractive to income-focused investors.
For those interested in a deeper analysis, InvestingPro offers additional tips and insights. There are 7 more InvestingPro Tips available for BHRB, which could provide further valuable information for investors considering the stock's potential in light of the recent insider transaction.
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