In a recent transaction, Randolph N. Reynolds Jr., a director at Blue Ridge Bankshares, Inc. (NYSEAMERICAN:BRBS), purchased shares of the company's Series B Preferred Stock valued at a total of $20,000. The acquisition took place on April 3, 2024, with the price per share set at a significant $10,000. The transaction was disclosed in a filing with the Securities and Exchange Commission dated April 5, 2024.
Reynolds acquired 2 shares of the Series B Preferred Stock, and following the transaction, he now directly owns a total of 2 shares in the company. The preferred shares are described as Mandatorily Convertible Cumulative Perpetual Preferred Stock, Series B, which under certain conditions, can be converted into Blue Ridge Bankshares' common stock. The terms for conversion are outlined in the company's Articles of Incorporation, which state that the preferred stock can be converted upon a Mandatory Conversion or Partial Conversion.
The preferred stock is perpetual and does not have an expiration date, providing potential long-term value to the holder. This transaction indicates a substantial investment by Reynolds in the company's future, as the preferred shares carry a high conversion price of $2.50 per share.
Investors often monitor insider transactions like these for insights into how company executives view the financial health and prospects of their organizations. Transactions by directors and other insiders can provide valuable context to the market's understanding of a company's performance and potential.
Blue Ridge Bankshares, Inc., based in Richmond, Virginia, operates as a state commercial bank and is incorporated in the same state. The company's common stock trades under the ticker symbol BRBS on the NYSE American exchange.
InvestingPro Insights
Following the insider purchase by director Randolph N. Reynolds Jr., investors may find certain metrics from InvestingPro particularly insightful. Blue Ridge Bankshares, Inc. (NYSEAMERICAN:BRBS) has been trading at a low Price / Book multiple of 0.33 as of the last twelve months leading up to Q4 2023, which could signal that the stock is undervalued relative to its book value. This aligns with the action taken by Reynolds, suggesting he may also perceive the stock to be undervalued.
Despite not being profitable over the last twelve months, with a P/E Ratio (Adjusted) of -2.46, Blue Ridge Bankshares has maintained dividend payments for 13 consecutive years, boasting a significant dividend yield of 16.55%. This commitment to returning value to shareholders could be a key factor in Reynolds' decision to increase his stake in the company. Moreover, the stock has experienced a significant return over the last week, with a 1 Week Price Total Return of 10.04%, and an even stronger return over the last month, marked by a 1 Month Price Total Return of 19.84%.
InvestingPro Tips highlight that the stock has taken a big hit over the last six months, with a 6 Month Price Total Return of -28.16%, and has seen a dramatic 1 Year Price Total Return of -70.15%. Nonetheless, the recent uptick and consistent dividend payments may offer a silver lining for current and prospective investors.
For investors seeking more comprehensive analysis, there are additional InvestingPro Tips available on Blue Ridge Bankshares, Inc. which can be accessed by visiting https://www.investing.com/pro/BRBS. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With these insights, investors can make more informed decisions about their investment strategies concerning BRBS.
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