NEWTON, NC - Peoples Bancorp (NASDAQ:PEBO) of North Carolina, Inc. (NASDAQ:PEBK), the parent company of Peoples Bank, has initiated a stock repurchase program, as announced today. Under this program, the company is authorized to buy back up to $2 million of its own common stock.
The repurchase plan comes after the company reported assets totaling $1.7 billion and stockholder's equity of $121.1 million as of March 31, 2024. The transactions may occur in the open market or through privately-negotiated deals, adhering to legal and securities regulations. Company management will decide the timing and volume of the repurchases based on market conditions and various other factors.
President and CEO Lance Sellers commented on the repurchase program, stating, "The Board's decision to repurchase stock was based on the strength of the Company's balance sheet and capital position. We believe this is an appropriate way to utilize capital and enhance shareholder value."
Peoples Bank serves customers through its 16 banking offices across several counties in North Carolina and maintains loan production offices in additional counties. The bank's common stock is listed on the Nasdaq Global Market under the ticker symbol "PEBK."
This stock repurchase program may be modified, suspended, or discontinued at any time without prior notice. The company's forward-looking statements, which include this stock repurchase plan, involve risks and uncertainties and are based on the beliefs and assumptions of the current management team.
Investors should note that the information in this article is based on a press release statement and should consider the risks and uncertainties mentioned, including changes in market conditions, interest rates, and regulatory environments that could affect the company's performance and the actual outcomes of the repurchase program.
InvestingPro Insights
As Peoples Bancorp of North Carolina, Inc. (NASDAQ:PEBK) announces its new stock repurchase program, investors are looking closely at the financial health and market performance of the company. According to real-time data from InvestingPro, Peoples Bancorp currently has a market capitalization of $154.5 million and is trading with a P/E ratio of 9.62, which is adjusted to 9.47 when looking at the last twelve months as of Q1 2024. This indicates a valuation that is potentially attractive to value-oriented investors.
The PEG ratio, which stands for price-to-earnings to growth, is at 2.02 for the same period, suggesting that the company's earnings growth rate may not fully justify its P/E ratio. Additionally, the price/book value ratio is at a reasonable 1.28, which could appeal to those looking for assets at a price close to their book value. Despite a modest revenue growth of 1.55% over the last twelve months as of Q1 2024, the company has seen a more significant quarterly revenue growth rate of 8.61% in Q1 2024.
One of the notable InvestingPro Tips for PEBK is its commendable track record of maintaining dividend payments for 40 consecutive years, coupled with a dividend yield of 3.15%, which could be a reassuring factor for income-focused investors. Moreover, the company has been profitable over the past twelve months, with an impressive return of 69.27% over the last year, highlighting the strength of its stock performance.
For those looking for more in-depth analysis and additional insights, there are more InvestingPro Tips available for PEBK at https://www.investing.com/pro/PEBK. For instance, while the company suffers from weak gross profit margins, it has also been trading at a high P/E ratio relative to near-term earnings growth. Investors interested in accessing these exclusive tips can use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking valuable information that could inform investment decisions.
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