In a recent transaction, Matthew Deines, the President and CEO of First Northwest Bancorp (NASDAQ:FNWB), acquired a significant number of shares in the company. The transaction, which took place on July 29, 2024, saw Deines purchase 9,285.3382 shares of common stock at a price of $10.79 per share, totaling approximately $100,188.
This purchase demonstrates a strong vote of confidence from the CEO in the future of First Northwest Bancorp, a savings institution not federally chartered, based in Port Angeles, Washington. Following this transaction, Deines now directly owns 110,740 shares in the company, an amount that includes various unvested shares of restricted stock under the company's 2015 and 2020 plans. These restricted shares are set to vest between August 2024 and March 2025.
Investors often view insider purchases as a positive indicator of the company's prospects, as executives are likely to buy stock based on their expectations of the company's future performance. Deines's recent acquisition could be interpreted as such an indicator, suggesting potential growth or undervaluation of First Northwest Bancorp's stock.
The details of the transaction were disclosed in a Form 4 filing with the Securities and Exchange Commission, which provides transparency into the trading activities of a company's officers and directors. Deines's role as both a director and an officer, as well as the CEO of the company, places him in a position of substantial influence and insight into the company's operations and potential.
First Northwest Bancorp, with its significant presence in the Pacific Northwest, continues to be an institution of interest for investors in the regional banking sector. The recent insider purchase by the CEO may prompt investors to take a closer look at the company's stock and its potential for long-term value creation.
In other recent news, First Northwest Bancorp has seen adjustments to its stock target by Piper Sandler, which revised the price target down to $12.00 from the previous $17.00, while maintaining a Neutral rating on the stock. This adjustment comes after First Northwest Bancorp's first-quarter results that showed modest profitability. Piper Sandler also adjusted its 2024 earnings per share estimate for the company downward to $0.50 from the prior $0.70 estimate but maintains its 2025 earnings per share estimate at $1.10.
The firm later increased the price target for First Northwest Bancorp to $11.50 from the previous $11.00, following a review of the company's second-quarter performance. Despite challenges in core earnings, Piper Sandler noted positive steps taken by First Northwest Bancorp aimed at enhancing profitability, including a branch sale-leaseback and a recently announced 9% Reduction in Force.
In other recent developments, First Northwest Bancorp promoted Kyle Henderson to Chief Credit Officer. Henderson, who has over 16 years of experience in the financial services sector, succeeds Terry Anderson following his retirement. Piper Sandler's outlook for First Northwest Bancorp remains cautious due to the bank's below-average profitability forecast and the uncertain timing surrounding the resolution of its consent order.
InvestingPro Insights
Following the insightful move by Matthew Deines, the President and CEO of First Northwest Bancorp (NASDAQ:FNWB), to increase his stake in the company, examining the financial metrics and expert analysis from InvestingPro provides a deeper understanding of the company's current standing. A notable InvestingPro Tip highlights that FNWB has a high shareholder yield, which can be appealing to investors looking for returns through dividends or buybacks. Another tip suggests that analysts are optimistic about the company's prospects, predicting that FNWB will turn profitable this year.
InvestingPro Data further reveals a mixed financial picture. The company's market capitalization stands at $92.01 million, indicating a relatively small size within the banking sector. The P/E ratio is notably negative at -75.55, reflecting the company's challenges in generating net income over the last twelve months. However, the PEG ratio, which measures the stock's price relative to its earnings growth, is at a modest 0.69, suggesting that analysts might be expecting future earnings growth to come at a reasonable price. Additionally, the company's stock has seen a significant decline over the last six months, with a price total return of -27.82%, which could indicate a potential undervaluation that Deines might be capitalizing on with his recent purchase.
For investors interested in further insights and analysis, there are additional InvestingPro Tips available that can provide a comprehensive view of First Northwest Bancorp's financial health and future outlook. Visit https://www.investing.com/pro/FNWB for a complete list of tips and in-depth metrics.
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