Agnes Catherine Ngo, a director at Central Pacific Financial Corp (NYSE:CPF), has recently sold shares of the company's common stock, according to a new SEC filing. The transaction, dated June 12, 2024, involved the sale of 3,333 shares at a price of $20.21 per share, amounting to a total of $67,359.
The sales were conducted under a prearranged 10b5-1 trading plan, a tool that allows insiders to sell shares at predetermined times to avoid accusations of insider trading. This plan was entered into on May 1, 2023, which means Ngo had no discretion over the timing of the sale.
Following the transaction, Ngo still holds a substantial number of shares in the company. The filing revealed post-sale ownership of 78,690 shares, indicating a strong ongoing stake in Central Pacific Financial Corp's future.
Central Pacific Financial Corp, headquartered in Honolulu, Hawaii, operates as a state commercial bank and is known for providing a range of banking products and services to businesses and individuals.
Investors often monitor insider sales as they may provide insights into an insider's view of the company's current valuation or future prospects. However, it is also common for company executives to sell shares for personal financial planning reasons unrelated to their outlook on the company.
The stock transaction details provide a glimpse into the financial moves of one of Central Pacific Financial Corp's key figures, but as always, investors should consider a wide range of factors when assessing the implications of insider trading activities.
In other recent news, Central Pacific Financial Corp. reported a steady net income of $12.9 million, or $0.48 per diluted share, for the first quarter of 2024. Despite a minor increase in non-performing assets due to specific mortgage loans, the company continues to exhibit strong credit quality. However, the total loan portfolio saw a slight decrease.
Despite recent challenges from the Maui wildfires, Central Pacific Financial Corp. remains optimistic about Hawaii's economic growth, expecting a modest expansion in 2024. The company's effective tax rate is projected to remain between 23% to 25%.
In further developments, Central Pacific Financial Corp. is focusing on strategies for deposit growth and net interest margin expansion. The company aims for low single-digit total deposit growth for the year and projects a net interest margin in the 2.90% to 3% range. Central Pacific Financial Corp. also plans to maintain a dividend payout ratio of 40% to 50% and continue share repurchases.
InvestingPro Insights
As investors digest the news of Agnes Catherine Ngo's recent stock sale, a closer look at Central Pacific Financial Corp's (NYSE:CPF) financial health using InvestingPro data may offer additional context. The company's market capitalization stands at $549.77 million, with a price-to-earnings (P/E) ratio of 9.91, which adjusts slightly to 9.62 when considering the last twelve months as of Q1 2024. This could suggest that the company's shares are trading at a reasonable valuation relative to its earnings.
Moreover, Central Pacific Financial Corp has a solid track record of dividend payments, having maintained them for 12 consecutive years, and currently offers an attractive dividend yield of 5.27%. This consistent return to shareholders might be a contributing factor to the company's 1-year price total return of 27.46%, which stands out in the current financial landscape.
Two InvestingPro Tips for Central Pacific Financial Corp highlight both a challenge and an opportunity: The company suffers from weak gross profit margins, yet analysts are optimistic, predicting profitability for the year. Additionally, the company has been profitable over the last twelve months, reinforcing the analysts' positive outlook.
For those looking to delve deeper into Central Pacific Financial Corp's performance and potential, InvestingPro offers more comprehensive analysis and tips. There are additional InvestingPro Tips available, providing investors with a more nuanced understanding of the company's prospects. Interested readers can take advantage of these insights and use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
Whether assessing the implications of insider trading activities or evaluating investment opportunities, such insights can be invaluable for making informed decisions in the dynamic marketplace.
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