In a recent transaction, Mark R. Hollar, the Chief Financial Officer (CFO) of Franklin Financial Services Corp /PA/ (NASDAQ:FRAF), has purchased additional shares of the company's common stock. The transaction, which took place on June 5, 2024, involved the acquisition of 100 shares at a price of $25.9 per share, amounting to a total investment of $2,590.
This latest purchase by the CFO has increased his total holdings in Franklin Financial Services to 11,364 shares. The acquisition reflects a direct ownership in the company's stock and adds to the executive's stake, which also includes 106 shares bought through the Dividend Reinvestment Plan (DRIP), as noted in the footnotes of the SEC filing.
Investors often keep a close eye on insider transactions such as these, as they can provide insights into the confidence that company executives have in the financial prospects of their organizations. The buying and selling activities of insiders are closely monitored for indications of their outlook on the company's future performance.
Franklin Financial Services Corp, headquartered in Chambersburg, Pennsylvania, operates within the state commercial banks sector. The company's shares are traded on the NASDAQ under the ticker symbol FRAF. As part of their regular financial disclosures, insider transactions such as this one are reported to the Securities and Exchange Commission (SEC) and made available to the public.
The transaction was signed off by Amanda M. Ducey, Corporate Secretary, on behalf of Mark R. Hollar on June 7, 2024.
In other recent news, Franklin Financial Services Corporation reported modest Q1 earnings, with a slight increase in net income to $3.4 million, marking a 2.1% year-over-year growth. The company's assets reached a milestone, surpassing $2 billion for the first time in a quarterly report, showing a significant rise from the previous year. Diluted earnings per share for the first quarter stood at $0.77, compared to $0.75 in the same period last year.
The bank's provision for credit losses was $452 thousand, lower than the previous quarter, and total net loans saw a 1.6% increase from the end of 2023. Total deposits also grew by 1.4% in the same period. However, Franklin Financial's return on average assets and the return on average equity both showed a decrease compared to the first quarter of 2023.
In other developments, the company declared a regular quarterly cash dividend of $0.32 per share to be paid in May 2024. The company's President and CEO, Tim Henry, highlighted the growth in assets, loans, and deposits, and announced the establishment of a new community office expected to be operational by the end of the year. These are recent developments that provide a snapshot of Franklin Financial's performance and strategic initiatives.
InvestingPro Insights
Following the insider transaction by Mark R. Hollar, CFO of Franklin Financial Services Corp (NASDAQ:FRAF), the company's financial metrics provide additional context to investors. With a market capitalization of $115.69 million and a price-to-earnings (P/E) ratio of 8.5, the stock presents a valuation that may attract value-focused investors. Notably, the P/E ratio has remained stable at 8.47 over the last twelve months as of Q1 2024.
One of the key InvestingPro Tips highlights that Franklin Financial Services has maintained dividend payments for 41 consecutive years, which is underscored by a solid dividend yield of 4.86% as of the last record date. This consistent dividend history may appeal to income-seeking shareholders, especially when considering the stock's proximity to its 52-week low, indicating a potential entry point for dividend investors. Moreover, the company has been profitable over the last twelve months, a reassuring sign of financial health.
As for performance, Franklin Financial Services has experienced a 1-year price total return of 3.18%, despite a year-to-date price total return of -14.86%. The revenue growth of 11.3% in Q1 2024 over the previous quarter could signal a positive trajectory for future earnings. For investors seeking further insights, InvestingPro offers additional tips, and by using the coupon code PRONEWS24, new subscribers can receive an extra 10% off a yearly or biyearly Pro and Pro+ subscription. Visit InvestingPro for more details and to discover the number of additional tips available.
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