David R. Melville III, the President and CEO of Business First Bancshares, Inc. (NASDAQ:BFST), recently sold a significant portion of his holdings in the company. Over the course of three days, Melville sold a total of 19,000 shares of common stock, generating proceeds of approximately $543,504. The shares were sold at prices ranging from $26.06 to $28.42 per share.
The transactions took place on November 4, 5, and 6, with Melville selling 7,316 shares on the first day at a weighted average price of $26.15, 3,512 shares on the second day at an average price of $26.06, and 9,172 shares on the final day at an average price of $28.42. Following these sales, Melville retains ownership of 221,639 shares in the company.
These transactions were executed through a series of trades at varying prices, with Melville committing to provide detailed information about the individual trades upon request.
In other recent news, Business First Bancshares reported positive growth for the third quarter of 2024. The company's GAAP net income and core net income stood at $16.5 million and $17.2 million respectively, driven by growth in commercial real estate and construction loans. The company also highlighted a successful expansion in Dallas and Houston, and the beneficial impact of the Oakwood acquisition on net loan growth.
Core net interest margin increased by 12 basis points to 3.46%, while core expenses reduced by $1 million. Total (EPA:TTEF) loans and deposits also saw a rise, growing by $57.3 million and $77.3 million respectively. The company expects the Oakwood transaction to contribute approximately $690 million in net loans.
However, non-performing loans saw a slight increase due to one SBA (LON:SBA) loan. Despite this, non-interest income showed strength, particularly from swap fees. Looking ahead, executives anticipate continued net interest margin growth and a core margin of around 3.50% by the second quarter of 2025. The integration of Oakwood is expected to provide a quarterly accretion of $700,000 to $800,000, with cost savings from the merger materializing towards the end of 2025. The company remains focused on organic growth within current markets and is open to strategic M&A opportunities.
InvestingPro Insights
Adding context to David R. Melville III's recent stock sales, Business First Bancshares (NASDAQ:BFST) is currently trading near its 52-week high, with a strong return of 19.91% over the last three months. This performance aligns with the timing of Melville's decision to sell a portion of his holdings.
Despite the CEO's stock sale, there are positive indicators for the company. According to InvestingPro Tips, Business First Bancshares has raised its dividend for 7 consecutive years, demonstrating a commitment to shareholder returns. The company's current dividend yield stands at 2.15%, with a notable dividend growth of 16.67% over the last twelve months.
From a valuation perspective, BFST's P/E ratio of 12.64 suggests the stock may be reasonably priced compared to earnings. The company's price-to-book ratio of 1.23 indicates that the stock is trading close to its book value, which could be attractive to value investors.
It's worth noting that 5 analysts have revised their earnings upwards for the upcoming period, signaling potential optimism about the company's near-term prospects. For investors seeking more comprehensive analysis, InvestingPro offers 8 additional tips for Business First Bancshares, providing a deeper dive into the company's financial health and market position.
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