Jeffrey David Jones, Executive Vice President and Chief Financial Officer of First Busey Corp (NASDAQ:BUSE), recently reported acquiring shares in the company. On July 30, Jones purchased 55.177 shares of common stock at an average price of $28.1882 per share, totaling approximately $1,555. These shares were acquired through dividend reinvestment as part of the First Busey Corporation Employee Stock Purchase Plan.
Additionally, on October 25, Jones received 752 shares as dividend equivalent rights related to Restricted Stock Units, which were not purchased for cash but accrued with the payment of a cash dividend. Following these transactions, Jones holds a total of 92,792.7709 shares directly, and 6,535.7702 shares indirectly through the Employee Stock Purchase Plan.
In other recent news, First Busey Corporation reported impressive earnings, primarily due to clean credit rather than significant growth or revenue surprises. The company also declared a quarterly cash dividend of $0.24 per share, illustrating its commitment to shareholder value. On the strategic front, First Busey announced a merger with CrossFirst Bankshares (NASDAQ:CFB), which is expected to add $7.6 billion in assets, $6.3 billion in loans, and $6.7 billion in deposits to its portfolio.
Analyst firms have reacted to these developments with varying perspectives. DA Davidson reduced its stock price target for First Busey to $26.00 from the previous $27.00, maintaining a neutral rating. The firm also revised its earnings per share (EPS) estimate for 2025 downward, citing a forecast of lower loan balances at the start of the year. Similarly, Stephens downgraded First Busey's stock from Overweight to Equal Weight and reduced the price target to $27 from the previous $28, following investor reactions to the acquisition.
In contrast, Piper Sandler maintained its Overweight rating on First Busey shares, indicating confidence in the company's strategic direction. The merger with CrossFirst Bankshares, valued at approximately $916.8 million, is anticipated to enhance First Busey's competitive edge in the banking sector, particularly in wealth management offerings. Once the acquisition is completed in the first half of 2025, the combined entity is projected to operate with approximately $20 billion in assets, $15 billion in loans, and $17 billion in deposits.
InvestingPro Insights
As Jeffrey David Jones increases his stake in First Busey Corp (NASDAQ:BUSE), investors might find additional context in the company's financial metrics and market performance. According to InvestingPro data, First Busey Corp has a market capitalization of $1.44 billion and trades at a price-to-earnings ratio of 12.77, suggesting a relatively modest valuation compared to broader market averages.
The company's dividend yield stands at 3.97%, which aligns with Jones's recent acquisition of shares through dividend reinvestment. This dividend is particularly noteworthy given an InvestingPro Tip indicating that First Busey Corp has maintained dividend payments for 36 consecutive years, demonstrating a strong commitment to shareholder returns.
Another InvestingPro Tip reveals that the company has been profitable over the last twelve months, with analysts predicting continued profitability this year. This positive outlook may provide some reassurance to investors considering the stock's recent performance, which shows a 1-year price total return of 31.76%, despite a 3-month decline of 14.1%.
For investors seeking a deeper understanding of First Busey Corp's financial health and market position, InvestingPro offers 6 additional tips and a comprehensive set of financial metrics. These insights can help in forming a more complete picture of the company's prospects and potential risks.
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