A recent filing with the Securities and Exchange Commission has revealed that William F. Ham Jr., a director at Auburn National Bancorporation, Inc. (NASDAQ:AUBN), has purchased additional shares in the company. The transaction, which took place on October 1, 2024, involved the acquisition of 61 shares of common stock at prices ranging from $23.2633 to $23.4043 per share, totaling approximately $1,426.
The purchase by Mr. Ham demonstrates a continued investment in the company's stock and brings his total direct ownership to 4,679 shares. Additionally, it is noted that there is an indirect ownership of 300 shares held by Mr. Ham's spouse.
Auburn National Bancorporation, headquartered in Auburn, Alabama, operates as a state commercial bank and is incorporated in Delaware. The company's business address and mailing address are both located at 100 N Gay St, P O Drawer 3110, Auburn, AL 36831-3110, and it can be contacted at 334-821-9200.
The recent transaction was conducted as part of a dividend reinvestment and optional cash purchase plan, as indicated in the remarks section of the filing, labeled "DRIP/OCP."
Investors and market watchers often look to the buying and selling activity of company insiders as an indicator of corporate health and future performance. The actions of directors and other insiders can provide insights into their perspective on the company's value and prospects.
InvestingPro Insights
The recent share purchase by director William F. Ham Jr. aligns with Auburn National Bancorporation's strong dividend history. According to InvestingPro Tips, AUBN has raised its dividend for 22 consecutive years and has maintained dividend payments for 30 consecutive years. This consistent dividend policy may be attractive to investors seeking stable income streams.
The company's dividend yield stands at 4.72% as of the latest data, which could be considered appealing in the current market environment. However, investors should note that AUBN is trading at a high earnings multiple, with a P/E ratio of 131.49, significantly above industry averages.
Recent performance metrics from InvestingPro Data show strong returns over the short term, with a 24.85% price total return over the last month and a 30.39% return over the last three months. This positive momentum is reflected in the stock price, which is currently at 90.61% of its 52-week high.
While these metrics paint a picture of a company with strong dividend credentials and recent price appreciation, it's worth noting that AUBN suffers from weak gross profit margins, according to InvestingPro Tips. This could be a concern for long-term profitability and sustainability of dividend growth.
For investors interested in a more comprehensive analysis, InvestingPro offers 7 additional tips for AUBN, providing a deeper insight into the company's financial health and market position.
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