In a recent transaction on September 13, Dorothea D. Silva, a director at Community West Bancshares (NASDAQ:CWBC), sold 1,400 shares of the company's common stock. The shares were sold at a price of $20.07 each, totaling $28,098.
This sale was disclosed in a legal filing with the Securities and Exchange Commission. Following the transaction, Silva's direct ownership in the company stands at 10,168 shares. The stock sale occurred at a time when investors are closely monitoring insider transactions for insights into company performance and director sentiment.
Community West Bancshares, based in Fresno, California, operates as the bank holding company for Community West Bank, providing various financial services to individuals and corporate clients.
The transaction details provide a snapshot of insider activity, which is often considered by investors as a barometer of a company's health and management's confidence in its future prospects.
In other recent news, Community West Bancshares disclosed its second-quarter financial results for 2024, reporting a loss of $0.33 per share. Piper Sandler's analysis, however, suggests a core earnings per share (EPS) of $0.40 when excluding merger-related charges and a provision related to the Current Expected Credit Losses (CECL) standard. Notably, the firm's initial EPS estimate of $0.11 had already considered a CECL provision, aligning with the consensus among other analysts.
The reported net interest margin (NIM) for Community West Bancshares increased by 23 basis points, reaching 3.65%. This figure fell short of Piper Sandler's expectation of a 4.49% margin and was also below the consensus of 4.43% among other analysts, leading to a shortfall of $0.27 in net interest income (NII) compared to the firm's forecast.
Additionally, Piper Sandler adjusted the price target for Community West Bancshares, increasing it from $22.00 to $24.00, while maintaining an Overweight rating on the stock. These are among the recent developments for Community West Bancshares.
InvestingPro Insights
Community West Bancshares (NASDAQ:CWBC) has been under scrutiny following the insider sale by director Dorothea D. Silva. To provide investors with a broader perspective on the company's financial health and market performance, let's delve into some key metrics and insights from InvestingPro.
Despite the insider sale, Community West Bancshares is currently trading at a high earnings multiple, with a Price-to-Earnings (P/E) Ratio of 28.37, reflecting a premium compared to some industry peers. This is slightly lower than the adjusted P/E ratio for the last twelve months as of Q2 2024, which stands at 27.65. Additionally, the company has shown resilience in its dividend policy, maintaining dividend payments for an impressive 13 consecutive years. The dividend yield as of the last recorded date stands at 2.39%.
InvestingPro Data also reveals that the company has experienced a strong return over the last three months, with a price total return of 21.87%. This performance is particularly notable when considering the broader market context. However, it's important to note that revenue growth has shown a decline of -3.45% over the last twelve months as of Q2 2024, with a sharper quarterly revenue decline of -6.85% in Q2 2024.
InvestingPro Tips suggest that while Community West Bancshares has been trading at a high earnings multiple, it suffers from weak gross profit margins. Moreover, analysts have revised their earnings downwards for the upcoming period, and net income is expected to drop this year. Despite these challenges, the company has been profitable over the last twelve months, and analysts predict it will remain profitable this year.
For those seeking more comprehensive analysis, there are additional InvestingPro Tips available on the platform, providing deeper insights into Community West Bancshares' financials and market performance (https://www.investing.com/pro/CWBC).
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