Chester J. Culver, a director at Federal Agricultural Mortgage Corp (NYSE:AGM), recently sold shares of the company's Class C Non-Voting Common Stock. The transactions, which took place on November 22 and November 25, involved a total of 700 shares sold at prices ranging from $203.6458 to $211.8222 per share. The total value of these transactions amounted to $145,229.
Following these sales, Culver holds 2,001 shares of the company, including 373 unvested restricted stock units that are set to vest on March 31, 2025, contingent on his continued service as a director. The sales were conducted during an open trading window for employees and directors of the company.
In other recent news, Farmer Mac reported strong third-quarter earnings for 2024, with a noteworthy shift towards renewable energy. The company's year-to-date revenues increased to $270 million, up by over $10 million from the previous year, and core earnings rose to $128 million. A new business volume of $2 billion was added for the quarter, contributing to a year-to-date total of $4.9 billion.
Despite a slight decrease in outstanding business volume to $28.5 billion, financial stability was maintained, with the company holding $850 million in cash and short-term instruments. Among the recent developments, the launch of the STARS system stands out, aiming to enhance operational efficiency and scalability.
Management expressed optimism about growth in the Renewable Energy segment and Farm & Ranch volumes. Notably, a new securitization program is in the pipeline to boost capital efficiency and transition to a product strategy. Despite a modest year-over-year decline in core earnings due to a $3.3 million provision for losses, core earnings net of credit increased by 6% year-over-year. The company is well-positioned to navigate potential market disruptions and anticipates growth in the renewable energy loan portfolio.
InvestingPro Insights
Federal Agricultural Mortgage Corp (NYSE:AGM), also known as Farmer Mac, has been demonstrating strong financial performance and shareholder value, which provides context to the recent insider sale by director Chester J. Culver.
According to InvestingPro data, AGM's market capitalization stands at $2.3 billion, with a P/E ratio of 13.23 based on the last twelve months as of Q3 2024. This relatively modest valuation is coupled with a robust dividend yield of 2.65%, which may be attractive to income-focused investors.
InvestingPro Tips highlight that AGM has raised its dividend for 13 consecutive years and has maintained dividend payments for 21 consecutive years. This consistent dividend growth aligns with the company's strong financial position, as evidenced by its profitability over the last twelve months and analysts' predictions of continued profitability this year.
The company's stock has shown impressive performance, with a one-year price total return of 31.45% and a strong return over the last month of 15.01%. These figures suggest that AGM is trading near its 52-week high, with the current price at 97.31% of its 52-week peak.
While the insider sale by Culver might raise questions, it's important to note that AGM's fundamentals appear solid. The company boasts a high return over the last decade, indicating long-term value creation for shareholders.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights, with 8 more tips available for AGM on the platform.
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