In a recent transaction on April 3, Heather Cozart, a director at Blue Ridge Bankshares, Inc. (NYSEAMERICAN:BRBS), acquired Series B Preferred Stock in the company. The purchase, involving 10 shares of the preferred stock, was made at the price of $2.50 per share, amounting to a total investment of $25.
This transaction reflects a continued interest and confidence by Cozart in the financial institution, which operates within the state commercial banks sector. The preferred shares acquired by Cozart are described as Mandatorily Convertible Cumulative Perpetual Preferred Stock, Series B, which indicates that these shares have the potential to be converted into common stock under certain conditions as outlined in the company's Articles of Incorporation.
It's noteworthy that the preferred stock in question is perpetual, meaning it does not have an expiration date, and becomes convertible into common stock either upon a Mandatory Conversion or Partial Conversion. These terms are specifically defined in the Articles of Amendment to the company's Articles of Incorporation, which created and authorized the shares of Mandatorily Convertible Cumulative Perpetual Preferred Stock, Series B.
Blue Ridge Bankshares, Inc., headquartered in Richmond, Virginia, has not reported any sales of stock by Cozart or other executives in the same filing. The transaction was officially signed off by Amanda G. Story, Attorney-in-Fact, on April 5, as indicated in the SEC filing.
Investors and market watchers often keep a close eye on insider transactions such as these, as they can provide insights into the executives' perspectives on the company's current valuation and future prospects.
InvestingPro Insights
Following the insider purchase by Heather Cozart at Blue Ridge Bankshares, Inc. (NYSEAMERICAN:BRBS), the market may be looking for signals to understand the company's current standing and future direction. InvestingPro data reveals that Blue Ridge Bankshares is trading at a low Price / Book multiple of 0.33, which could suggest that the stock is undervalued relative to the company's book value as of the last twelve months ending in Q4 2023. This aligns with the action taken by Cozart, indicating a potential value opportunity.
From a performance standpoint, despite recent challenges, the company has demonstrated resilience with a significant return over the last week, showing a 10.04% price total return. This recent uptick is part of a broader context where the stock has experienced a strong return over the last month, at 19.84%. Such performance could be a sign of recovering investor confidence or reaction to market dynamics.
Additionally, Blue Ridge Bankshares pays a significant dividend to shareholders, with a dividend yield of 16.55%, which is quite substantial. This commitment to returning value to shareholders is underscored by the fact that the company has maintained dividend payments for 13 consecutive years, a feat that provides a degree of assurance to income-focused investors.
For those looking to delve deeper into Blue Ridge Bankshares' financials and market performance, InvestingPro offers further insights and metrics. To explore these in detail and to access additional InvestingPro Tips, visit https://www.investing.com/pro/BRBS. There are 6 more InvestingPro Tips available, which can provide a comprehensive understanding of the company's financial health and market position. Use the exclusive coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and unlock the full potential of InvestingPro's expert analysis.
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