In a recent transaction disclosed by Mid Penn Bancorp Inc. (NASDAQ:MPB), Rory G. Ritrievi, the company's President and CEO, acquired 500 shares of the company's common stock. The shares were purchased on November 1, 2024, at a price of $29.50 per share, totaling $14,750. Following this transaction, Ritrievi holds a direct ownership of 49,528.84 shares, which includes shares acquired through the company's Dividend Reinvestment Plan. Additionally, Ritrievi maintains indirect ownership of 4,309.604 shares in an IRA account and owns 27,697 shares of restricted stock, which vest according to their respective grant terms.
In other recent news, Mid Penn Bancorp announced a public offering of 2,375,000 shares of common stock at a price of $29.50 per share, aiming to raise $70 million. The offering is managed by Stephens Inc. and Piper Sandler & Co., with the bank expecting to net approximately $67 million. The proceeds are intended to support growth initiatives, including potential redemption of subordinated debt and future strategic transactions.
In earnings news, Mid Penn Bancorp reported a third-quarter EPS of $0.74, surpassing both analysts' and consensus estimates. This performance was attributed to higher-than-expected net interest income and fee income. The bank's pre-provision net revenue also exceeded initial forecasts after adjustments for certain expenses.
On the analysts' front, Piper Sandler raised its price target for Mid Penn Bancorp shares to $35.00, maintaining an Overweight rating. This adjustment follows the bank's strong performance in the second quarter, where it reported an EPS of $0.71, again beating estimates. Other recent developments include a share buyback program in place with $5 million remaining under the current authorization. These are some of the recent developments surrounding Mid Penn Bancorp.
InvestingPro Insights
The recent insider purchase by Mid Penn Bancorp's President and CEO, Rory G. Ritrievi, aligns with several positive indicators highlighted by InvestingPro. The company's stock appears to be attractively valued, trading at a P/E ratio of 10.73, which is considered low relative to its near-term earnings growth potential. This valuation metric suggests that the market may be undervaluing Mid Penn Bancorp's current earnings power.
InvestingPro data reveals that Mid Penn Bancorp has demonstrated strong performance, with a remarkable 58.55% price total return over the past year and a 47.94% return over the last six months. These figures underscore the stock's recent momentum, which may have influenced Ritrievi's decision to increase his stake.
Furthermore, an InvestingPro Tip notes that Mid Penn Bancorp has maintained dividend payments for 14 consecutive years, reflecting the company's commitment to shareholder returns. This consistency in dividend payments, combined with the current dividend yield of 2.58%, may be particularly appealing to income-focused investors.
It's worth noting that while the company shows strength in many areas, InvestingPro also points out that Mid Penn Bancorp suffers from weak gross profit margins. This insight provides a balanced view of the company's financial health and operational efficiency.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for Mid Penn Bancorp, providing a deeper understanding of the company's financial position and market performance.
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