Jefferson L. Harralson, Executive Vice President and Chief Financial Officer of United Community Banks Inc. (NASDAQ:NYSE:UCB), has sold a total of 10,275 shares of the company's common stock, according to a recent filing with the Securities and Exchange Commission. The transactions, which took place on October 28, 2024, were executed at prices ranging from $27.75 to $28.61 per share, amounting to a total value of $285,193.
Following these sales, Harralson retains ownership of 43,991 shares in the bank. The sales were conducted directly and were not part of an equity swap. The weighted average price for the larger block of shares sold was noted to range between $27.53 and $28.23.
In other recent news, United Community Banks has seen a series of adjustments in analyst price targets following its third-quarter results. Truist Securities revised its price target down to $30, maintaining a Hold rating. The firm adjusted its Core EPS estimates for 2024 and 2025 to $2.21 and $2.19, respectively. Similarly, Piper Sandler reduced its price target to $28, keeping a Neutral rating, and adjusted its earnings estimates for 2024 and 2025 to $2.20 and $2.25, respectively.
On the other hand, DA Davidson held a more optimistic view, maintaining a Buy rating and raising its price target to $35, based on the bank's strong liquidity position and potential for accelerated loan growth by 2025. The bank also announced plans to transfer its stock listing from NASDAQ to the New York Stock Exchange, a move expected to increase visibility among investors and stakeholders.
These recent developments come amidst the bank's stable operating earnings per share at $0.52 for the first quarter of 2024 and a modest 1.2% loan growth. Credit quality within United Community Banks showed a mixed picture, but Truist noted positive movement, citing the ongoing decrease in Nativas Net Charge-offs (NCOs) to 1.34% of average loans, down from 1.42% in the previous quarter.
InvestingPro Insights
In light of Jefferson L. Harralson's recent stock sale, it's worth examining United Community Banks Inc.'s (NASDAQ:UCB) current financial position and market performance. According to InvestingPro data, UCB's market capitalization stands at $3.39 billion, with a price-to-earnings ratio of 18.53, suggesting a moderate valuation relative to earnings.
Notably, UCB has demonstrated a commitment to shareholder returns. An InvestingPro Tip highlights that the company has raised its dividend for 10 consecutive years, with a current dividend yield of 3.36%. This consistent dividend growth may provide some context for executive stock transactions, as it reflects the company's financial stability and shareholder-friendly policies.
However, investors should also consider that 3 analysts have revised their earnings downwards for the upcoming period, according to another InvestingPro Tip. This could indicate some near-term challenges or uncertainties that may have influenced the CFO's decision to sell shares.
Despite these mixed signals, UCB's stock has shown strong performance over the past year, with a 1-year price total return of 34.34%. This substantial gain might explain why an executive might choose to realize some profits through stock sales.
For a more comprehensive analysis, InvestingPro offers additional tips and metrics that could provide further insight into UCB's financial health and future prospects. Investors interested in a deeper dive can access 6 more InvestingPro Tips for UCB, which could be valuable in understanding the full picture behind executive transactions and the company's outlook.
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