James Edward Hartlieb, President and CEO of First Business Financial (NASDAQ:FBIZ) Services, Inc. (NASDAQ:FBIZ), recently sold 6,344 shares of the company’s common stock. The shares were sold at prices ranging from $43.06 to $43.38, resulting in a total transaction value of approximately $273,731. Following this sale, Hartlieb holds 28,161.874 shares directly. The transaction was executed on October 31, 2024, and was disclosed in a filing with the Securities and Exchange Commission.
In other recent news, First Business Financial Services reported strong earnings of $1.23 per share, surpassing expectations due to robust pre-provision net revenue, a lower provision for credit losses, and a reduced tax rate. This positive financial performance prompted DA Davidson and Keefe, Bruyette & Woods to upgrade the stock and increase the price target to $50 and $51, respectively. Furthermore, the company issued $20 million in subordinated debentures with a 7.5% fixed interest rate, set to mature in 2034, part of a strategy to manage capital requirements and support future loan growth.
Piper Sandler adjusted its outlook on First Business Financial Services, increasing the price target to $53.00, noting a solid quarter with a 2% positive operating leverage, attributed to effective cost control and expected net interest income. The firm expressed optimism due to stable net charge-offs and flat nonperforming assets, despite some challenges in the company's equipment finance portfolio.
In other developments, First Business Financial Services saw a 10% increase in loan growth, primarily driven by growth in commercial and industrial loans, and maintained its quarterly cash dividend at $0.25 per common share. Finally, the firm's outlook for FBIZ includes revised earnings per share forecasts for 2024 and 2025, and a new estimate for 2026.
InvestingPro Insights
While James Edward Hartlieb's recent stock sale might raise eyebrows, a closer look at First Business Financial Services, Inc. (NASDAQ:FBIZ) reveals a company with solid fundamentals and a history of shareholder value creation.
According to InvestingPro data, FBIZ boasts a market capitalization of $357.35 million and trades at a relatively modest P/E ratio of 9.29. This valuation appears attractive, especially considering the company's consistent profitability and dividend growth track record.
InvestingPro Tips highlight that FBIZ has raised its dividend for 12 consecutive years and has maintained dividend payments for an impressive 20 years. This commitment to shareholder returns is further underscored by the company's current dividend yield of 2.34% and a robust dividend growth rate of 9.89% over the last twelve months.
Despite the CEO's recent share sale, the company's financial health appears strong. FBIZ has demonstrated revenue growth of 3.59% over the last twelve months, with a substantial operating income margin of 36.4%. These figures suggest that the company is effectively managing its operations and generating value for shareholders.
It's worth noting that FBIZ's stock has shown remarkable performance, with a one-year price total return of 41.59%. This significant appreciation may have influenced the CEO's decision to sell a portion of his holdings.
For investors seeking more comprehensive analysis, InvestingPro offers additional insights with 7 more tips available for FBIZ. These tips could provide valuable context for understanding the company's position in the current market environment and its potential for future growth.
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