In a recent transaction, Theodore W. Mowery, a director at Mid Penn Bancorp Inc. (NASDAQ:MPB), purchased shares of the company's stock. The transaction, which took place on September 30, involved the acquisition of 67 shares at a price of $29.83 per share, totaling approximately $2,000.
This purchase was made through the Director Stock Purchase Plan, as noted in the footnotes of the filing. Following this transaction, Mowery's direct holdings in the company's common stock have increased to 34,076.691 shares. Additionally, the footnotes indicate that Mowery's balance includes shares acquired through the Dividend Reinvestment Plan.
Mid Penn Bancorp, headquartered in Harrisburg, Pennsylvania, operates within the state commercial banks sector. The company's common stock is traded under the ticker symbol MPB on the NASDAQ.
Investors often monitor insider transactions such as these for insights into the confidence levels of company executives and directors in the firm's prospects. However, it's important to note that there are various reasons why insiders may buy or sell shares, and such transactions do not always reflect the future performance of the company's stock.
"In other recent news, Mid Penn Bancorp showcased strong financial results, with its earnings per share (EPS) for the second quarter of 2024 reported at $0.71, surpassing both analyst and consensus estimates. After adjustments, the core EPS stood at $0.68. The firm's net interest income exceeded expectations, contributing to the EPS, while operating expenses were lower than anticipated. However, these gains were somewhat offset by a higher provisioning cost and a decrease in fee income. The company's net interest margin increased significantly to 3.12% in the last quarter, exceeding the anticipated 2.97%.
Mid Penn Bancorp also demonstrated improved capital levels, with tangible common equity and common equity tier 1 ratios rising. The firm's nonperforming assets decreased from the last quarter, indicating a strong credit profile. Notably, the company has reauthorized a share buyback program of up to $15 million, with $5 million remaining under the program as of June 2024.
Piper Sandler, a financial firm, maintained an Overweight rating on Mid Penn Bancorp, increasing the price target to $31 from $25, reflecting confidence in the bank's potential. Despite the bank's performance being somewhat lackluster compared to its peers, Piper Sandler suggests that the current valuation represents good value due to the bank's solid credit profile and its commitment to controlling expenses."
InvestingPro Insights
Building on the recent insider transaction at Mid Penn Bancorp Inc. (NASDAQ:MPB), additional data from InvestingPro provides a broader perspective on the company's financial health and market performance.
Mid Penn Bancorp's stock has shown remarkable strength recently, with InvestingPro data revealing a 31.57% price total return over the past three months and an impressive 49.09% return over the last six months. This aligns with an InvestingPro Tip highlighting the company's "Strong return over the last three months," which may have influenced Director Mowery's decision to increase his holdings.
The company's financial stability is underscored by its consistent dividend payments. An InvestingPro Tip notes that Mid Penn Bancorp "Has maintained dividend payments for 14 consecutive years," demonstrating a commitment to shareholder returns that complements the insider buying activity.
From a valuation standpoint, Mid Penn Bancorp appears to be trading at reasonable levels. The company's P/E ratio stands at 10.56, suggesting it may be undervalued compared to industry peers. Additionally, with a price-to-book ratio of 0.86, the stock is trading below its book value, potentially indicating an attractive entry point for investors.
It's worth noting that InvestingPro offers 7 additional tips for Mid Penn Bancorp, providing even more comprehensive insights for investors looking to deepen their analysis of this regional bank stock.
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