Investors in Oak Valley Bancorp (NASDAQ:OVLY) may take note as recent filings with the Securities and Exchange Commission (SEC) reveal that director Gilbert James L has made additional investments in the company's common stock. The transactions, which took place over several months, resulted in the acquisition of additional shares through automatic dividend reinvestment.
On two separate occasions, the director increased his holdings in Oak Valley Bancorp. The first purchase, dated August 14, 2023, involved 33 shares at a price of $26.79 each. A subsequent acquisition on February 12, 2024, saw the director buy 48 more shares, this time at a slightly lower price of $25.63 per share. Collectively, these buys amounted to a total investment of approximately $2,114.
It's worth noting that these purchases were made automatically through a dividend reinvestment plan, as indicated in the footnotes of the SEC filing. This suggests a continued commitment to the company by automatically reinvesting dividends into additional shares of Oak Valley Bancorp.
Following these transactions, Gilbert's ownership in the bank has been adjusted to reflect the newly acquired shares, which were not previously reported. The adjustments bring his total reported ownership to 155,891 shares of common stock in Oak Valley Bancorp.
For current and prospective shareholders, these insider transactions can be an important indicator of confidence in the company's future performance and financial health. Oak Valley Bancorp continues to be a point of interest in the financial community, with these recent purchases reinforcing the director's stake in the institution.
InvestingPro Insights
As Oak Valley Bancorp (NASDAQ:OVLY) witnesses insider investment activity, the broader financial community is evaluating the company's performance and potential. With a market capitalization of $197.16 million, Oak Valley Bancorp is trading with a price-to-earnings (P/E) ratio of 6.34, indicating that the stock may be undervalued relative to near-term earnings growth. This aligns with the InvestingPro Tips that highlight the company's low P/E ratio in comparison to its earnings growth potential.
Additionally, Oak Valley Bancorp's commitment to shareholder returns is reflected in its impressive track record of raising its dividend for 10 consecutive years, a point that is particularly noteworthy for income-focused investors. The company's dividend yield currently stands at 1.88%, with a significant dividend growth of 50.0% over the last twelve months as of Q1 2023. This consistent dividend policy can be seen as a sign of financial stability and a strong commitment to returning value to shareholders.
Investors may also find reassurance in the company's profitability, as Oak Valley Bancorp has been profitable over the last twelve months. However, it's important to note that the company's price has experienced a significant drop of 15.04% over the past three months. This could present a potential buying opportunity for value investors who are confident in the company's fundamentals and long-term prospects.
For those interested in a deeper analysis, InvestingPro offers a wealth of additional insights. There are several more InvestingPro Tips available that can provide a more comprehensive understanding of Oak Valley Bancorp's financial health and market position. To access these valuable tips, visit https://www.investing.com/pro/OVLY and remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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