Five Star Bancorp (NASDAQ:FSBC) director Shannon Deary-Bell has purchased 13,793 shares of the company's common stock at a price of $21.75 per share, totaling approximately $300,000. This transaction was reported in a recent filing with the Securities and Exchange Commission.
The purchase by Deary-Bell, who serves as a trustee for various family trusts, reflects a notable investment in the company's stock. Following this transaction, the total number of shares owned by Deary-Bell in Five Star Bancorp has increased to 77,355 shares. It is important to note that this amount includes 1,638 unvested shares that are scheduled to vest at the end of 2024, contingent upon Deary-Bell's continued service as a director of the bank.
The shares are held in a variety of trusts, including The Bell Family Revocable Trust and the Beverly B. Deary Trust (Survivor's Trust), both of which list Deary-Bell as a trustee. Additionally, shares are held in trusts for the benefit of Deary-Bell's children, namely The Connor J. Bell 2018 Irrevocable Trust and The Riley S. Bell 2018 Irrevocable Trust. Deary-Bell has disclaimed beneficial ownership of the securities held in these children's trusts, and this filing does not constitute an admission of beneficial ownership for Section 16 or any other purposes.
Investors often monitor insider transactions such as these for insights into the confidence that company executives and directors have in the firm's future performance. While the reasons for Deary-Bell's purchase were not disclosed in the filing, such acquisitions can sometimes be interpreted as a positive signal about the company's prospects.
Five Star Bancorp, based in Rancho Cordova, California, operates as a state commercial bank and provides various financial services. The company's stock trades on the NASDAQ under the ticker symbol FSBC.
InvestingPro Insights
Following the recent insider purchase by director Shannon Deary-Bell, Five Star Bancorp (NASDAQ:FSBC) has shown several financial metrics that could be of interest to current and potential investors. The company boasts a market capitalization of $467.66 million and a P/E ratio of 7.99, indicating a potentially attractive valuation for investors looking at traditional earnings metrics. However, when adjusting for the last twelve months as of Q4 2023, the P/E ratio stands at a higher 9.82. This suggests that the company's earnings might not be growing as fast as its share price, a point further underscored by a PEG ratio of 1.51 for the same period, which could imply that the price might be high relative to the expected earnings growth.
On the dividend front, Five Star Bancorp has shown a commitment to returning value to shareholders, having raised its dividend for three consecutive years. The dividend yield as of the latest data stands at 3.56%, which is a significant consideration for income-focused investors. This is reinforced by a robust dividend growth rate of 33.33% over the last twelve months as of Q4 2023.
For those looking for more insights, there are additional InvestingPro Tips available on the platform. For example, while the company is trading at a high P/E ratio relative to near-term earnings growth, analysts predict that Five Star Bancorp will be profitable this year, which could be a reassuring factor for investors. Moreover, despite suffering from weak gross profit margins, the company has been profitable over the last twelve months. It's worth noting that there are 5 more InvestingPro Tips available for FSBC, which could provide a deeper understanding of the company's financial health and future prospects.
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