In recent trading activity, MetroCity Bankshares , Inc. (NASDAQ:MCBS) director Don Leung has sold a significant number of shares in the company. According to the latest filings, Leung parted with a total of 123,734 shares over two separate transactions on July 16 and July 17.
The first sale on July 16 involved 55,413 shares at a price of $28.56 per share. The following day, Leung sold an additional 68,321 shares at a slightly higher price of $28.59 each. These transactions amounted to a combined total of over $3.5 million.
After these sales, Leung's remaining stake in MetroCity Bankshares consists of 931,467 shares. This indicates a substantial divestment but still leaves Leung with a notable position in the company.
The disclosed transactions were carried out under a prearranged 10b5-1 trading plan, which allows company insiders to set up a predetermined schedule for buying and selling stocks at a time when they are not in possession of material non-public information. Such plans are often used to dispel concerns about improper trading on the basis of insider knowledge.
Investors and market watchers often pay close attention to insider trading patterns as a signal of executives' confidence in their company's prospects. In the case of MetroCity Bankshares, Leung's recent stock sales could be interpreted in various ways, but the existence of the 10b5-1 plan suggests that the transactions were planned well in advance and not necessarily indicative of a negative outlook.
MetroCity Bankshares, headquartered in Doraville, Georgia, operates as a state commercial bank and has been serving its community with a range of financial services. The company's stock performance and executive trading activities continue to be monitored by investors seeking to understand the financial health and future potential of the bank.
In other recent news, MetroCity Bankshares has seen a positive shift in its operations due to the extended period of higher interest rates. Keefe, Bruyette & Woods (KBW) responded by raising the bank's price target from $27.00 to $28.00, while maintaining a Market Perform rating. This adjustment is a result of the bank's successful inclusion of swaps in its operations.
MetroCity Bankshares is currently in robust financial health, as evidenced by its high profitability and strong capital ratios. It is expected to deliver a return on tangible common equity (ROTCE) of 15% for the years 2024 and 2025. The bank's stock is also trading at approximately 10 times the firm's 2024 earnings estimates and 1.5 times the tangible book value (TBV), positioning it favorably compared to its competitors.
The KBW analyst justified the price target increase by highlighting MetroCity Bankshares' superior profitability and strong financial metrics. The new price target reflects the bank's ability to leverage higher interest rates and its advantageous position in the current economic landscape. These are the recent developments for MetroCity Bankshares.
InvestingPro Insights
MetroCity Bankshares, Inc. (NASDAQ:MCBS) has shown notable financial movements that are of interest to investors monitoring insider trading activities. With director Don Leung's recent sale of shares, it's valuable to look at some key metrics that may provide additional context to the company's current market position.
InvestingPro data highlights a Market Cap of 737.77M USD, which reflects the company's valuation and is a critical factor in assessing its size and market influence. Additionally, the P/E Ratio stands at 14.68, which can offer insights into investor expectations about future earnings growth and how the stock is valued relative to its earnings. The company's Dividend Yield is reported at 2.79%, which could be attractive to investors seeking income in addition to capital gains.
Among the InvestingPro Tips, it's noteworthy that MetroCity Bankshares has raised its dividend for 3 consecutive years and has maintained dividend payments for 9 consecutive years. This consistency in dividend payments could be a sign of the company's commitment to returning value to shareholders and may be particularly relevant for income-focused investors. Moreover, the company's strong return over the last month and trading near its 52-week high suggest a recent positive momentum in its stock price, which could be a factor for those considering the timing of their investments.
For investors interested in a deeper analysis, there are 11 additional InvestingPro Tips available for MetroCity Bankshares, which can be accessed by visiting: https://www.investing.com/pro/MCBS. For those looking to subscribe, remember to use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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