Bridgewater Bancshares Inc . (NASDAQ:BWB) recently saw a transaction involving its director, James S. Johnson, who sold shares of the company's common stock. According to a filing with the Securities and Exchange Commission, Johnson sold 684 shares at a price of $15 each, totaling $10,260.
Following this transaction, Johnson holds 98,351 shares directly. Additionally, Johnson maintains indirect ownership of shares through trusts and a spouse's IRA, with 59,250 shares held by the James S. Johnson Trust, 76,750 shares by the Jolynn Johnson Trust, and 10,417 shares in a spouse's IRA. The trusts, dated May 28, 2015, are co-managed by Johnson, who shares voting and investment power over these holdings.
In other recent news, Bridgewater Bancshares reported stable growth for Q3 with earnings of $0.27 per share, consistent net interest income growth, and a significant increase in core deposits. The company also announced an anticipated acquisition of First Minnetonka City Bank, expected to enhance liquidity and reduce commercial real estate concentration. This development, along with leadership changes including the appointment of Nick Place as Chief Banking Officer and Lisa Salazar as Chief Operating Officer, positions Bridgewater Bancshares for potential margin expansion.
Despite a decline in loan balances due to elevated loan payoffs, there is strong loan demand and a robust loan pipeline. The company's fixed-rate loan portfolio is expected to benefit from future Federal Reserve rate cuts. Also noteworthy is the company's strong capital ratios, with CET1 increasing from 9.41% to 9.79%.
These recent developments indicate Bridgewater Bancshares' commitment to maintaining conservative credit practices and focusing on profitable growth. The bank is optimistic about its growth strategy, citing strong deposit competition and a favorable response from the Federal Reserve's recent rate cut. The acquisition of First Minnetonka City Bank is set to close in the fourth quarter of 2024, marking another significant milestone in the company's trajectory.
InvestingPro Insights
While Bridgewater Bancshares Inc. (NASDAQ:BWB) has seen recent insider selling, it's important to consider the company's financial metrics and market performance. According to InvestingPro data, BWB has a market capitalization of $405.9 million and trades at a price-to-earnings ratio of 13.82, suggesting a relatively modest valuation compared to some peers in the banking sector.
The company's stock has shown strong performance over the past year, with a 39.45% total return, outpacing many competitors. This positive momentum is reflected in the stock trading at 92.5% of its 52-week high, indicating investor confidence despite the recent insider sale.
InvestingPro Tips highlight that BWB has been profitable over the last twelve months, with analysts predicting continued profitability this year. However, it's worth noting that net income is expected to decline, which could explain the insider's decision to sell shares. The company's lack of dividend payments may also influence investor sentiment and insider trading activities.
For investors seeking a deeper understanding of BWB's financial health and future prospects, InvestingPro offers additional insights. The platform provides 5 more tips for Bridgewater Bancshares, which could be valuable for those considering an investment in the company.
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