HARRISBURG, PA—Kimberly J. Brumbaugh, a director at Mid Penn Bancorp Inc. (NASDAQ:MPB), recently purchased 1,000 shares of the company's common stock, according to a regulatory filing with the Securities and Exchange Commission. The shares were acquired at a price of $29.50 each, totaling $29,500.
Following this transaction, Brumbaugh holds 8,676.026 shares directly, with an additional 1,092.496 shares held indirectly through an Individual Retirement Account (IRA). The filing also notes a holding of 999 shares in restricted stock, which is set to vest fully on the first anniversary of the grant date.
The acquisition was part of Brumbaugh's ongoing investment in Mid Penn Bancorp, a state commercial bank headquartered in Harrisburg, Pennsylvania. The company continues to focus on providing financial services to communities across the state.
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 an option for underwriters to purchase up to an additional 356,250 shares. The bank intends to use the proceeds to support growth initiatives, including potential redemption of subordinated debt and future strategic transactions.
Mid Penn Bancorp also reported favorable earnings per share (EPS) of $0.74 for the third quarter of 2024, surpassing both analysts' and consensus estimates. The strong performance was attributed to higher-than-expected net interest income and fee income. The bank's pre-provision net revenue (PPNR) also exceeded initial forecasts after adjustments for certain expenses.
Financial services firm Piper Sandler has upgraded its price target for Mid Penn Bancorp shares to $35.00, maintaining an Overweight rating, following the bank's strong performance. Despite a slight increase in nonperforming assets (NPAs) due to a single loan migration, the bank's credit profile remains strong. Additionally, the bank reported higher capital levels for the quarter, even without engaging in share repurchases. These are some of the recent developments surrounding Mid Penn Bancorp.
InvestingPro Insights
The recent insider purchase by director Kimberly J. Brumbaugh aligns with several positive indicators for Mid Penn Bancorp (NASDAQ:MPB). According to InvestingPro data, the company's stock has shown strong performance, with a 58.55% total return over the past year and a 47.94% return in the last six months. This upward trend suggests growing investor confidence in the bank's prospects.
Mid Penn Bancorp's financial health appears robust, with a price-to-earnings (P/E) ratio of 10.73, indicating that the stock may be undervalued relative to its earnings. This is further supported by an InvestingPro Tip highlighting that the company is trading at a low P/E ratio relative to its near-term earnings growth potential.
Additionally, the bank has maintained dividend payments for 14 consecutive years, as noted by another InvestingPro Tip. This consistency in shareholder returns, coupled with a current dividend yield of 2.58%, may be attractive to income-focused investors.
For those interested in a deeper analysis, InvestingPro offers 10 additional tips for Mid Penn Bancorp, providing a more comprehensive view of the company's financial position and market performance.
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