Federal Agricultural (NYSE:AGM) Mortgage Corp's (NYSE:AGM) Executive Vice President and General Counsel, Stephen P. Mullery, sold a total of $450,598 worth of Class C Non-Voting Common Stock at an average price of $182.281 per share. The transaction took place on September 10, 2024, and involved the sale of 2,472 shares. This sale comes alongside other transactions involving the acquisition and disposal of shares by Mullery.
On September 9, Mullery engaged in transactions that included acquiring 5,610 shares at a price of $32.39 each, totaling $181,707. This was part of the exercise of vested stock appreciation rights, which also led to the disposition of 2,137 shares at $181.63 per share to satisfy tax withholdings, amounting to $388,143. Additionally, a further disposition of 1,001 shares at the same price resulted in a total of $181,811. These transactions were reported to be conducted during an open trading window for employees and directors of the company.
Following these transactions, Mullery's holdings in Federal Agricultural Mortgage Corp include both vested and unvested shares. According to the filing, he retains a total of 22,045 shares after the sales, which includes 3,417 unvested restricted stock units previously granted under the company's incentive plan.
Investors keeping an eye on insider transactions may note these recent activities for their potential insights into executive perspectives on the company's valuation. Federal Agricultural Mortgage Corp, commonly known as Farmer Mac, is a federally chartered instrumentality of the United States that aims to increase the availability and affordability of credit for the agricultural community.
The sale was disclosed in a legal filing with the Securities and Exchange Commission, which is available to the public. The company's stock, listed under the ticker AGM, experienced these insider transactions amidst its regular trading activities.
In other recent news, Farmer Mac, the Federal Agricultural Mortgage Corporation, reported robust Q2 2024 results, showcasing financial resilience amidst challenging market conditions. The company's performance was highlighted by a significant new business volume of $1.5 billion and a notable increase in revenues to $89 million. Despite a provision for a single loan loss and a small loss from a loan sale, Farmer Mac's core earnings were reported at $39.8 million.
The company's capital and liquidity positions remain strong, exceeding statutory requirements. Farmer Mac has also seen considerable growth in its engagement with renewable energy, which has more than doubled since the previous year.
These recent developments also include the company's anticipation of stable or improved earnings if interest rates decline. Farmer Mac is working on its fifth FARM series securitization transaction for later in the year, projecting minimal change in profitability and limited exposure to interest rate movements. This comes despite a provision for a single permanent planting loan in bankruptcy and a loss of $1.1 million from the sale of part of a corporate ag finance loan.
InvestingPro Insights
Amidst the insider transactions by Stephen P. Mullery, Executive Vice President and General Counsel of Federal Agricultural Mortgage Corp (NYSE:AGM), the company's financial health and market performance provide a broader context for investors. An InvestingPro Tip highlights that AGM has raised its dividend for 12 consecutive years, signaling a commitment to returning value to shareholders. This is further supported by the fact that AGM has maintained dividend payments for 21 consecutive years. Moreover, analysts predict the company will be profitable this year, which is consistent with its performance over the last twelve months.
Looking at the real-time data from InvestingPro, AGM's market capitalization stands at 1990M USD, reflecting the company's substantial size in the agricultural finance sector. The P/E Ratio is notably low at 8.78, and when adjusted for the last twelve months as of Q2 2024, it is 10.84. This low P/E ratio, relative to near-term earnings growth, could indicate that the stock is undervalued. Additionally, the PEG Ratio for the same period is 0.61, suggesting that the stock may be attractive in terms of growth-adjusted valuation.
Investors may also find the dividend yield of 3.08% as of the last dividend ex-date on June 14, 2024, to be a compelling aspect of AGM's investment profile. For those interested in exploring further, there are additional InvestingPro Tips available at https://www.investing.com/pro/AGM, which could provide deeper insights into AGM's financial metrics and performance.
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