In a recent transaction, Nick Rosenberg, the Executive Vice President of Metropolitan Bank Holding Corp. (NYSE:MCB), sold 1,250 shares of the company's common stock. The sale, which took place on October 4, 2024, was executed at a weighted average price of $55.1406 per share, resulting in a total transaction value of approximately $68,925.
The shares were sold in multiple transactions with prices ranging from $55.00 to $55.4250. In accordance with the Securities and Exchange Commission requirements, Rosenberg has agreed to provide full details of the shares sold at each price upon request.
Following the sale, Rosenberg still holds a total of 31,443 shares of Metropolitan Bank Holding Corp.'s common stock, which includes restricted stock units that are set to vest in the coming years. These units were granted on different dates, with a portion vesting annually at a rate of 33.3%, starting from March 1, 2023.
The sale was made under a Rule 10b5-1 trading plan, which Rosenberg had adopted on June 6, 2024. Such plans allow company insiders to establish pre-arranged plans to sell stocks at a time when they are not in possession of material non-public information, providing a defense against claims of insider trading.
Investors and the market keep a close eye on insider transactions as they can provide insights into an executive's perspective on the company's current valuation and future prospects. The transactions are publicly disclosed to ensure transparency and to maintain fair markets.
In other recent news, Metropolitan Commercial Bank (MCB) announced a robust financial performance for the second quarter of 2024. The company reported a significant rise in its net interest margin (NIM) and earnings per share, reaching $1.50, backed by an uptick in commercial and industrial loans, and commercial real estate loans. Despite a decrease in deposits due to the wind down of the GPG business, MCB is actively substituting them with core deposits.
The bank's strategic initiatives, including the ongoing digital transformation projected to conclude in 2025 and the wind down of the GPG business, are progressing as scheduled. MCB is expecting a modest increase in NIM for the rest of the year, targeting a fourth quarter NIM between 3.47% and 3.50%. The bank also anticipates a balance sheet expansion of $200 million to $300 million by the end of the year.
However, MCB faced declines in letter of credit fees and GPG revenue, but saw an increase due to deposit fees. The bank is managing the runoff of the remaining $800 million in GPG deposits with a blended cost of around 1.5%. The bank's CEO, Mark R. DeFazio, expressed a positive outlook for the second half of the year, with a clear vision for 2025 and a commitment to return to historical performance standards.
InvestingPro Insights
To provide additional context to Nick Rosenberg's recent stock sale, let's examine some key financial metrics and insights from InvestingPro for Metropolitan Bank Holding Corp. (NYSE:MCB).
As of the latest data, MCB's market capitalization stands at $599.05 million. The company's P/E ratio is currently 8.57, which is notably low relative to its near-term earnings growth potential. This valuation metric suggests that the stock might be undervalued compared to its earnings prospects, potentially explaining why Rosenberg still maintains a significant position in the company despite his recent sale.
MCB has demonstrated strong performance in the stock market, with a 64.48% price total return over the past year and a 45.29% return over the last six months. This impressive growth aligns with one of the InvestingPro Tips, which highlights MCB's "High return over the last year" and "Large price uptick over the last six months."
Another relevant InvestingPro Tip indicates that MCB is "Profitable over the last twelve months," with a reported revenue of $248.62 million in the last twelve months as of Q2 2024. The company's operating income margin stands at a robust 42.98%, reflecting strong operational efficiency.
It's worth noting that while MCB shows promising financial metrics, there are some potential concerns. An InvestingPro Tip mentions that the company "Suffers from weak gross profit margins," which investors may want to monitor closely.
For readers interested in a more comprehensive analysis, InvestingPro offers 6 additional tips for MCB, providing a deeper understanding of the company's financial health and market position.
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