Community Trust Bancorp Inc. (NASDAQ:CTBI) reported that its President, Richard W. Newsom, sold a total of 78 shares of the company's common stock on June 11, 2024. The shares were sold at a price of $41.2 each, amounting to a total value of $3,213.60.
The transaction was disclosed in a Form 4 filing with the Securities and Exchange Commission. According to the document, the shares sold were indirectly owned through the Estate of Beatrice Newsom. Following the sale, the estate no longer holds any shares in the company.
In addition to the shares sold, the filing revealed that Newsom has indirect holdings of 17,096.5118 shares through an Employee Stock Ownership Plan (ESOP), 15,421.1536 shares through a 401(k) plan, and direct holdings of 1,679 shares, 2,374.7266 shares, and 6,127.564 shares in various accounts. Additionally, Newsom's spouse indirectly owns 124 shares of Community Trust Bancorp Inc.
Investors often monitor insider transactions such as these for insights into management's perspective on the company's valuation and prospects. The sale made by President Newsom provides such data, though it does not necessarily indicate a change in company strategy or future performance.
Community Trust Bancorp Inc., based in Kentucky, operates as the bank holding company for Community Trust Bank, Inc., which provides various banking services in Kentucky, West Virginia, and Tennessee. The company's stock is traded on the NASDAQ under the ticker symbol CTBI.
In other recent news, Citi Trends, Inc. reported first-quarter results that revealed a wider-than-expected loss and a revenue miss, causing an 8.7% decline in share price. The company reported an adjusted loss per share of -$0.32, falling short of the consensus estimate by $0.09, and revenue for the quarter was $186.3 million, missing the analyst projection of $187.38 million. Despite the shortfall, Citi Trends achieved a 3.7% increase in total sales compared to the same quarter of the previous year, and comparable store sales grew by 3.1%.
The company's gross margin improved to 38.7%, up from 36.7% as reported in the first quarter of the previous year. This performance improvement was attributed to targeted inventory rebuilds and the company's ability to deliver in-store experiences that resonate with their customers. Citi Trends' balance sheet remains strong, with $58.2 million in cash and no debt at the end of the quarter.
In terms of future developments, Citi Trends reiterated its full-year 2024 EBITDA outlook, expecting it to be in the range of $4 million to $10 million. The company slightly lowered its forecast for comparable store sales growth to low to mid-single digits, which is below the previous outlook. Additionally, the company plans to open up to 5 new stores, remodel around 40 stores, and close 10 to 15 underperforming stores by the end of the fiscal year.
InvestingPro Insights
As investors consider the implications of President Richard W. Newsom's recent sale of Community Trust Bancorp Inc. shares, it's important to contextualize this insider activity with broader financial metrics and analyst insights that may influence the company's stock valuation. Here are some key points from InvestingPro:
Community Trust Bancorp Inc. (NASDAQ:CTBI) has demonstrated a commitment to shareholder returns, boasting a dividend yield of 4.38% as of the last twelve months leading up to Q1 2024. Notably, this reflects a dividend growth of 4.55% during the same period. Investors may find reassurance in the company's ability to maintain and grow its dividends, which has been consistent for 37 consecutive years, according to one of the InvestingPro Tips.
The company's financial health is further evidenced by its price-to-earnings (P/E) ratio, which stands at 9.63, marginally adjusted to 9.67 for the last twelve months as of Q1 2024. This suggests that the company's earnings reasonably support its market valuation. Additionally, Community Trust Bancorp's price to book ratio is at a modest 1.06, indicating that the stock may be reasonably valued in relation to its assets.
While the company has experienced a slight revenue decline of -0.65% over the last twelve months as of Q1 2024, it remains profitable with a robust operating income margin of 45.82%. This profitability is also reflected in the basic and diluted EPS (Earnings Per Share) from continuing operations, which were both reported at $4.32.
For investors seeking more comprehensive analysis, there are additional InvestingPro Tips available that discuss the company's financial outlook, including analyst predictions that Community Trust Bancorp will remain profitable this year. To explore these insights further, investors can visit https://www.investing.com/pro/CTBI, and for those looking to subscribe to InvestingPro, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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