MetroCity Bankshares , Inc. (NASDAQ:MCBS) has reported a recent purchase of its common stock by director Shim Sam Sang-Koo, according to the latest filings with the Securities and Exchange Commission. The transactions, which occurred on April 26 and April 29, 2024, involved Shim acquiring a substantial number of shares, signaling a boost in the director's stake in the bank holding company.
On April 26, Shim purchased 695 shares of MetroCity Bankshares at a price of $23.85 each. Following this transaction, the director's direct holdings in the company increased significantly. Shortly after, on April 29, an additional 1,900 shares were acquired at a slightly higher price of $23.9 per share. Notably, these shares were bought indirectly by Shim's spouse, further contributing to the director's overall investment in the firm.
The combined total for these purchases amounted to over $61,985, with the price per share for these buy transactions ranging between $23.85 and $23.9. The reported acquisitions have bolstered Shim's confidence in the company, as evidenced by the increased ownership stake.
MetroCity Bankshares, headquartered in Doraville, Georgia, operates as the holding company for Metro City Bank, providing a range of banking services to its customers. These recent transactions by a key director are often seen by investors as a positive sign regarding the company's performance and prospects.
Investors and market watchers typically monitor insider buying and selling activities as they may provide insights into the company's financial health and the sentiment of its executives and directors. The details of these transactions are publicly disclosed as per regulatory requirements, offering transparency into the trading activities of corporate insiders.
InvestingPro Insights
Amidst the insider trading activity, MetroCity Bankshares, Inc. (NASDAQ:MCBS) has demonstrated financial metrics that may be of interest to investors seeking to understand the company's current valuation and performance. With a market capitalization of $567.38 million and a price-to-earnings (P/E) ratio standing at 11.48, MetroCity Bankshares shows a valuation that can be seen as reasonable in the current market context. The adjusted P/E ratio for the last twelve months as of Q1 2024 aligns closely at 11.45, indicating stability in the company’s earnings relative to its share price.
On the profitability front, MetroCity Bankshares has been profitable over the last twelve months, which aligns with analyst predictions that the company will remain profitable this year. This is underscored by a robust operating income margin of 58.97% for the same period. Furthermore, the company has a track record of rewarding shareholders, having raised its dividend for 3 consecutive years and maintained dividend payments for 9 consecutive years. The dividend yield as of the latest data stands at an attractive 3.42%, with a dividend growth of 11.11% over the last twelve months.
For those looking to delve deeper into the financials and future projections of MetroCity Bankshares, there are additional InvestingPro Tips available. These include insights on the company's gross profit margins, which have been identified as an area of weakness. However, it's worth noting that MetroCity Bankshares has had a high return over the last decade, which could be a compelling factor for long-term investors. To explore these tips and more, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. There are 6 additional tips listed on InvestingPro that could provide further guidance on whether MetroCity Bankshares aligns with your investment strategy.
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