Dime Community Bancshares sees insider purchase totaling $5,767

In a recent filing with the Securities and Exchange Commission, it was disclosed that Basswood Capital Management, L.L.C., along with its affiliates, executed a purchase of Dime Community Bancshares, Inc. (NASDAQ:DCOM) stock. On February 14, 2025, the firm acquired 186 shares at a price of $31.01 per share, totaling approximately $5,767. The stock, which currently trades at $31.45 with a market capitalization of $1.37 billion, has delivered an impressive 70% return over the past year.

The transaction was carried out by Basswood Capital Management, L.L.C., which acts as an investment manager or adviser to various funds and accounts, including Basswood Strategic Financial Fund, L.P. and others. Matthew Lindenbaum, a managing member of Basswood Capital Management, serves on the board of directors of Dime Community Bancshares as a representative of the reporting entities. According to InvestingPro, analysts have set price targets ranging from $38 to $44, suggesting potential upside from current levels.

Following this transaction, the total shares owned by Basswood and its affiliates include 1,545 shares directly associated with this purchase, alongside other holdings. The firm and its representatives have clarified their roles as directors-by-deputization in the context of these transactions. Notably, DCOM has maintained dividend payments for 29 consecutive years, currently offering a 3.18% yield.

In other recent news, Dime Community Bancshares reported its fourth-quarter 2024 earnings, revealing a significant revenue achievement but an earnings per share (EPS) shortfall. The company reported revenue of $99.48 million, exceeding expectations by over $31 million, while EPS came in at $0.42, missing the forecast by $0.02. The company’s net interest margin expanded by 29 basis points, and core deposits grew by approximately $500 million, showcasing robust financial performance. Despite these positive developments, the company experienced a decline in stock value, reflecting investor concerns over the EPS miss.

Additionally, Dime Community Bancshares has set projections for 2025, anticipating non-interest income between $40 million and $42 million, with expectations of low single-digit loan growth. The company aims for a net interest margin of 3% in 2025, with potential for further expansion in 2026. In terms of strategic growth, Dime Community Bancshares is considering potential acquisitions, particularly within the Tri-State area, to enhance franchise value.

Analyst firms, such as Piper Sandler, have shown interest in the company’s future plans, especially regarding non-interest income and loan growth. The company also completed a successful common equity offering, raising approximately $136 million, which was accretive to tangible book value and improved its capital ratios. These developments indicate Dime Community Bancshares’ strong position in the market and its strategic focus on growth and stability.

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