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Tan Farid, President of MetroCity Bankshares , Inc. (NASDAQ:MCBS), recently sold shares of the company's common stock. According to a Form 4 filing with the Securities and Exchange Commission, Farid sold 5,983 shares on November 25 at an average price of $35.641 per share. The total value of the sale amounted to approximately $213,240. Following this transaction, Farid holds 914,888 shares directly.
In other recent news, MetroCity Bankshares has seen a significant uplift in its price target, which was raised to $34 from $32 by Keefe, Bruyette & Woods. This adjustment was made in light of the bank's consistent profitability and strong capital levels across various market cycles. The bank's forward-looking performance indicators, including a return on assets forecast at 1.8%, return on tangible common equity at 15%, and an anticipated growth from 11% in the third quarter over the next two years, played a key role in this decision.
MetroCity Bankshares has also been trading at a tangible book value multiple of 1.9 times, a premium compared to the 1.5 times median for small to midsize banks. This reflects the market's positive reception of the bank's financial health and growth prospects. Notably, the bank outperformed in the third quarter of 2024, exceeding expectations by $0.01 per share.
Adding to these developments, MetroCity Bankshares has welcomed a new member to its Board of Directors, Mr. John Paek. With a rich professional history that includes roles at Deloitte Tax LLP and Baker McKenzie LLP, Mr. Paek is expected to bring valuable expertise to the board. However, it's important to note that Mr. Paek does not meet the independence criteria under NASDAQ's listing rules due to his familial connection to the company's leadership.
Mr. Paek will join the Asset Liability Committee, the Credit Risk Management Committee, and the Directors’ Loan Committee of the Bank. His remuneration will be in line with that of his fellow board members, as outlined in the company's Definitive Proxy Statement filed earlier this year.
InvestingPro Insights
MetroCity Bankshares, Inc. (NASDAQ:MCBS) has been demonstrating strong financial performance, which adds context to the recent insider sale by President Tan Farid. According to InvestingPro data, the company's stock has shown impressive returns, with a 68.23% total return over the past year and a 39.26% return in the last six months. This robust performance aligns with the company's solid fundamentals.
InvestingPro Tips highlight that MetroCity Bankshares has raised its dividend for 4 consecutive years and maintained dividend payments for 9 consecutive years. This commitment to shareholder returns is further underscored by the current dividend yield of 2.68% and a significant dividend growth of 27.78% over the last twelve months.
The company's financial health is reflected in its profitability, with InvestingPro data showing a P/E ratio of 14.65, which is considered relatively low compared to its near-term earnings growth potential. Additionally, MetroCity Bankshares boasts a strong operating income margin of 60.62% for the last twelve months as of Q3 2024, indicating efficient operations.
While the insider sale by Farid might raise questions, it's important to note that the company's fundamentals remain strong. The stock is trading close to its 52-week high, at 95.63% of that peak, which could explain the timing of the sale from a personal financial planning perspective.
For investors seeking a deeper understanding of MetroCity Bankshares' potential, InvestingPro offers 12 additional tips that could provide valuable insights into the company's prospects and valuation.
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