STRASBURG, VA - FIRST NATIONAL CORP /VA/ (NASDAQ:FXNC) Director James R. Wilkins III has recently increased his stake in the company through a series of stock purchases on June 11, 2024. The transactions, which were reported in a recent filing, show that Wilkins acquired a total of 3,500 shares of the company's common stock, with prices ranging from $15.35 to $15.45 per share, amounting to a total investment of $53,945.
The director's purchase demonstrates a strong vote of confidence in the future of First National Corp, a state commercial bank headquartered in Strasburg, Virginia. The acquisition of shares directly aligns Wilkins' interests with those of the company's shareholders, as he increases his direct ownership in the firm.
According to the filing details, the transactions consisted of three separate purchases: 1,700 shares at $15.45 each, 800 shares at $15.35 each, and another 1,000 shares at $15.40 each. Following these buys, Wilkins now directly owns 291,043 shares of First National Corp. Additionally, it was noted in the footnotes of the document that he owns an additional 146,133 indirect shares, further solidifying his stake in the company.
The purchases by Wilkins come at a time when insider activity is closely watched by investors seeking insights into a company's internal perspective on its financial health and market position. While the reasons behind Wilkins' decision to increase his holdings are not disclosed, such transactions are often seen as a sign that the company's leadership believes in the firm's strategy and prospects.
Investors and market analysts often look to insider buying patterns as one of many indicators to gauge a company's performance and outlook. The recent activity by Wilkins may be interpreted as a positive signal for First National Corp's future, as insiders are typically privy to detailed information about their company's operations and potential.
The filing was signed by M. Shane Bell, by Power of Attorney, on behalf of Wilkins, and was dated June 12, 2024, the day it was filed. As always, investors are encouraged to consider the context of such transactions and to look at a comprehensive set of data when making investment decisions.
In other recent news, First National Corporation and Touchstone Bankshares have agreed to a $47.0 million all-stock merger, uniting two Virginia-based community banks with histories dating back to the early 1900s. The transaction is set to create a combined entity with assets totaling around $2.1 billion, $1.5 billion in loans, and $1.8 billion in deposits. This new entity will operate thirty branches in Virginia and two in North Carolina, becoming the ninth-largest community bank in Virginia by deposits.
First National projects the merger to be 36% accretive to earnings per share and anticipates significant cost synergies, projecting savings of about $7.2 million, or 35% of Touchstone's noninterest expense. The agreement stipulates that Touchstone shareholders will receive 0.8122 shares of First National stock for each share of Touchstone stock, translating to an aggregate deal value of approximately $47.0 million.
The merger has been unanimously approved by both companies' boards of directors and is expected to complete in the fourth quarter of 2024, pending shareholder and regulatory approvals. Upon completion, three Touchstone directors will join the First National and First Bank (NASDAQ:FRBA) boards, with James Black, Touchstone's current CEO, assuming the role of Executive Vice President and South Region President of First Bank. These are among the recent developments in the banking sector.
InvestingPro Insights
Following the recent insider stock purchases by Director James R. Wilkins III, investors may gain additional perspectives on FIRST NATIONAL CORP /VA/ (NASDAQ:FXNC) by considering key metrics and insights from InvestingPro. Notably, the company has shown a commitment to shareholder returns, having raised its dividend for 10 consecutive years, which aligns with the positive sentiment reflected by Wilkins' increased stake. Furthermore, the latest data reveals a dividend yield of 3.89%, which is particularly attractive for income-focused investors.
Despite concerns over weak gross profit margins, analysts remain optimistic about the company's profitability, forecasting FXNC to be profitable this year. This outlook is supported by the company's performance over the last twelve months, during which it remained profitable. The current P/E Ratio stands at 10.91, suggesting that the company's shares may be valued reasonably relative to its earnings.
Investors considering FIRST NATIONAL CORP /VA/ should note that the company's stock is trading at 71.36% of its 52-week high, with a recent price of $15.44 per share. With the market cap currently at $97.42M, the company presents a profile that may interest those looking for smaller-cap investment opportunities. Additionally, the InvestingPro platform lists several more InvestingPro Tips for FXNC, offering deeper insights into the company's financial health and market position. For those interested in accessing these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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