Kenneth M. Walsh, a director at Eagle Bancorp (NASDAQ:EGBN) Montana, Inc. (NASDAQ:EBMT), recently executed a notable transaction involving the company's common stock. According to a Form 4 filing with the Securities and Exchange Commission, Walsh sold 6,705 shares at an average price of $16.44 per share, totaling approximately $110,220. This sale was reportedly made to diversify retirement assets.
In addition to the sale, Walsh acquired 1,699 shares of common stock at no cost. These shares were awarded under a non-employee director award plan approved by shareholders in April 2020. Following these transactions, Walsh's direct ownership of Eagle Bancorp Montana stock stands at 141,033 shares.
In other recent news, Eagle Bancorp Montana reported a third-quarter net income of $2.7 million, or $0.34 per diluted share, marking an improvement from the previous quarter. Despite a year-over-year decline in net income for the first nine months of 2024, the company's board declared a quarterly cash dividend of $0.1425 per share. Eagle Bancorp Montana is also reportedly in discussions regarding potential merger and acquisition opportunities.
DA Davidson recently updated its price target for Eagle Bancorp Montana to $18.00 from the previous $17.00, maintaining a Neutral rating on the stock. This follows the bank's third-quarter results, which were largely in line with expectations, despite a lack of growth in fee income. The firm's forecast for the bank's net interest margin has been revised slightly downward, leading to a more cautious outlook on net interest income and a revised earnings per share estimate for 2025.
In terms of executive compensation, amendments have been made to the agreements for three top executives at Eagle Bancorp Montana. The President and CEO, Laura F. Clark, will see her annual benefit increase from $26,500 to $46,000. Miranda J. Spaulding, the Senior Vice President and CFO, will have her annual benefit raised from $95,000 to $99,500, and Dale F. Field, the Senior Vice President and Chief Credit Officer, will receive an increase in his annual benefit from $70,000 to $89,000. These changes will take effect from November 1, 2024.
InvestingPro Insights
Eagle Bancorp Montana's recent director transactions occur against a backdrop of mixed financial indicators. According to InvestingPro data, the company's market capitalization stands at $127.35 million, with a P/E ratio of 14.87, suggesting a relatively modest valuation compared to some peers in the banking sector.
Despite the director's sale, which was reportedly for portfolio diversification, Eagle Bancorp Montana has shown resilience in certain areas. An InvestingPro Tip highlights that the company has maintained dividend payments for 25 consecutive years, demonstrating a commitment to shareholder returns. This is further supported by a current dividend yield of 3.51%, which may be attractive to income-focused investors.
However, the company faces some challenges. Another InvestingPro Tip indicates that analysts anticipate a sales decline in the current year, with revenue growth showing a negative 6.46% in the last twelve months as of Q3 2024. This aligns with the broader trend of 3 analysts revising their earnings downwards for the upcoming period.
On a positive note, the stock has shown strong performance recently, with a 19.19% price total return over the last three months and a substantial 27.67% return over the past six months. This upward momentum could be a factor for investors to consider alongside the fundamental data.
For readers interested in a more comprehensive analysis, InvestingPro offers 10 additional tips for Eagle Bancorp Montana, providing a deeper dive into the company's financial health and market position.
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