SEATTLE—Evans Godfrey B., Executive Vice President and General Counsel at HomeStreet, Inc. (NASDAQ:HMST), recently sold a portion of his holdings in the company. According to a Form 4 filing with the Securities and Exchange Commission, Evans sold 4,636 shares of HomeStreet common stock on November 26, 2024. The shares were sold at an average price of $11.5504, amounting to a total transaction value of $53,547.
Following this transaction, Evans holds 67,049 shares of HomeStreet stock. The sale was executed in multiple transactions, with prices ranging from $11.490 to $11.615 per share.
In other recent news, HomeStreet, a Washington-based commercial bank, has terminated its merger agreement with FirstSun Capital Bancorp (NASDAQ:CBNK) and Dynamis Subsidiary, as per an 8-K filing with the Securities and Exchange Commission. The dissolution of this significant agreement, originally announced in early 2024, was mutually agreed upon by all parties involved. The specifics of this mutual termination agreement are documented in the 8-K filing.
The termination marks a notable shift from the strategic consolidation within the banking sector that was indicated by the initial merger announcement earlier this year. The reasons for the termination of the merger agreement, however, were not disclosed by HomeStreet.
Additionally, the financial terms or any potential penalties associated with the termination of the merger agreement were not disclosed in the 8-K filing. This recent development leaves investors and stakeholders of both HomeStreet and FirstSun to consider the implications of this change in strategy.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on HomeStreet's financial situation, providing context to the insider sale reported. The company's market capitalization stands at $216.67 million, reflecting its current valuation in the market.
One of the key InvestingPro Tips highlights that HomeStreet is "trading at a low Price / Book multiple." This is supported by the Price / Book ratio of 0.41 for the last twelve months as of Q3 2024, suggesting the stock may be undervalued relative to its book value. This could be of interest to value investors, despite the recent insider sale.
Another relevant InvestingPro Tip indicates that the company is "quickly burning through cash." This information, combined with the reported revenue decline of 24.63% over the last twelve months, may explain why an executive chose to sell shares at this time.
It's worth noting that HomeStreet's stock has shown significant volatility, with a 1-year price total return of 84.54%, contrasting with a 3-month price total return of -24.36%. This volatility aligns with another InvestingPro Tip stating that the "stock generally trades with high price volatility."
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for HomeStreet, providing a deeper understanding of the company's financial health and market position.
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