Blue Ridge Bankshares, Inc. (NYSEAMERICAN:BRBS) director Elizabeth Hinton Crowther has recently made a notable investment in the company's Series B Preferred Stock. On April 3, 2024, Crowther purchased 1 share of the preferred stock at a striking price of $10,000 per share. This transaction is part of the derivative securities and is not common stock; it has a conversion price of $2.50.
The preferred stock acquired by Crowther is of a particular type known as Mandatorily Convertible Cumulative Perpetual Preferred Stock, Series B. According to the footnotes in the SEC filing, this preferred stock can be converted into common stock under certain conditions defined in the Articles of Amendment to the company's Articles of Incorporation. Additionally, this type of preferred stock does not have an expiration date, making it a perpetual instrument.
This transaction demonstrates Crowther's ongoing commitment to the company, with the director maintaining a direct ownership stake following the purchase. The investment reflects confidence in the future performance of Blue Ridge Bankshares, a state commercial bank headquartered in Virginia.
Investors and shareholders often monitor such transactions closely, as they can indicate an insider's belief in the company's prospects. The details of these transactions are disclosed in SEC filings, which provide transparency and allow stakeholders to stay informed about significant insider trades.
The attorney-in-fact for the transaction was Amanda G. Story, who signed the SEC filing on April 5, 2024. The investment by a key insider such as Crowther is a point of interest for those following Blue Ridge Bankshares, as it may signal positive expectations from within the company's leadership.
InvestingPro Insights
Amid the recent transaction by director Elizabeth Hinton Crowther, Blue Ridge Bankshares, Inc. (NYSEAMERICAN:BRBS) presents a unique set of financial metrics and market performance indicators. Notably, the company is trading at a low Price / Book multiple of 0.33 as of the last twelve months ending Q4 2023, suggesting the market may be undervaluing the company's net asset value. This could be a point of interest for value investors looking for potential opportunities.
From a shareholder return perspective, despite a challenging year with the stock price declining by -70.15% over the last year, there has been a significant return over the last week, with a 10.04% increase in total price return. Additionally, over the last month, the company's stock has experienced a strong return of 19.84%. These recent upticks could indicate a shift in investor sentiment or a response to market conditions.
For income-focused investors, Blue Ridge Bankshares has a noteworthy dividend yield of 16.55%, and it has maintained dividend payments for 13 consecutive years. This level of yield, combined with a history of consistent payments, could be appealing to those seeking regular income streams from their investments. However, it's important to consider that the company has not been profitable over the last twelve months, with a reported operating income margin of -19.81% and a negative return on assets of -1.66%, which could raise concerns about the sustainability of future dividends.
For more detailed analysis and additional InvestingPro Tips, investors can explore the full suite of metrics and insights available for Blue Ridge Bankshares on InvestingPro. Currently, there are 9 additional tips listed in InvestingPro that could further guide investment decisions. Remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, enhancing your investment research with valuable data and insights.
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