WASHINGTON TOWNSHIP - Parke Bancorp, Inc. (NASDAQ: PKBK), a New Jersey-based commercial bank, has announced a new stock repurchase program approved by its Board of Directors. The program authorizes the buyback of up to 5% of the company's common stock over the next twelve months.
The repurchases will occur in the open market, adhering to the limitations of Rule 10b-18 of the Securities Exchange Act of 1934, and will be subject to the Securities and Exchange Commission (SEC) regulations, including price, market volume, and timing constraints.
Vito S. Pantilione, President and CEO of Parke Bancorp and Parke Bank, stated that the repurchase program is a key part of the company's capital management strategies. He emphasized that the company views its stock as an attractive investment at current prices and believes that buying back shares will enhance shareholder value.
Parke Bancorp, established in January 2005, operates Parke Bank, which began its services in January 1999. The bank serves individuals and small-sized businesses in New Jersey and Pennsylvania, emphasizing personal and business financial services. Parke Bank has multiple branch offices across New Jersey and Philadelphia, with its deposits insured by the FDIC.
The company's common stock is traded on the NASDAQ Capital Market under the symbol "PKBK." The announcement includes a caution regarding forward-looking statements, highlighting potential risks and uncertainties that could cause actual results to differ materially from expectations. These include the company's ability to maintain a strong capital base, pay dividends, enhance shareholder value, and potential regulatory actions.
InvestingPro Insights
In light of Parke Bancorp, Inc.'s recent announcement of a stock repurchase program, a closer look at the company's financial metrics and InvestingPro Tips can provide a valuable context for investors considering the bank's stock. Parke Bancorp, with a market capitalization of $215.69 million, showcases a commitment to returning value to shareholders, as evidenced by its consistent dividend history. The company has raised its dividend for 10 consecutive years and has maintained dividend payments for 11 consecutive years, signaling a stable financial position and a shareholder-friendly policy.
InvestingPro Data indicates that the bank currently holds a price-to-earnings (P/E) ratio of 9.92, which is in line with its adjusted P/E ratio for the last twelve months as of Q2 2024 at 9.96. This suggests that the stock is priced reasonably relative to its earnings. Despite a recent dip in stock price over the last week, with a 7.68% decrease in total return, the company has experienced a strong return over the last month, with a 15.77% increase in total return. This volatility may present opportunities for investors looking to capitalize on short-term price movements.
While the bank's revenue has seen a decline of 18.1% over the last twelve months as of Q2 2024, Parke Bancorp remains profitable with a notable operating income margin of 49.73%. This profitability, coupled with a dividend yield of 3.89%, may appeal to income-focused investors. Additionally, the bank's stock is currently trading at 86.34% of its 52-week high, which could indicate room for growth as the market conditions evolve.
For those interested in a deeper analysis, InvestingPro offers additional insights and tips on Parke Bancorp, Inc. (https://www.investing.com/pro/PKBK), including more detailed financial data and expert commentary to support investment decisions. With numerous additional InvestingPro Tips available, investors can gain a more comprehensive understanding of the bank's financial health and market position.
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