Zachary Carpenter, Executive Vice President and Chief Business Officer of Federal Agricultural Mortgage Corp (NYSE:AGM), has recently sold 500 shares of the company's Class C Non-Voting Common Stock. The shares were sold at an average price of $207.354 each, totaling approximately $103,677.
In addition to the stock sale, Carpenter engaged in several other transactions involving the company's Class C Non-Voting Common Stock. These included acquisitions and dispositions related to the exercise of stock appreciation rights (SARs). The acquisitions were valued at a total of $330,280, with prices ranging from $88.68 to $120.38 per share. Dispositions, including shares retained by the company for tax withholding purposes, amounted to $330,425 at a price of $209.13 per share.
The transactions were executed during an open trading window for employees and directors of Farmer Mac, as noted in the filing. Following these transactions, Carpenter holds 9,673 shares of the company's stock.
In other recent news, Farmer Mac announced its Q3 earnings for 2024, showcasing a year-to-date revenue increase to $270 million and a strategic pivot towards higher-yielding segments like renewable energy. The company's core earnings rose to $128 million, and a new business volume of $2 billion was reported for the quarter, contributing to a year-to-date total of $4.9 billion. Despite a decrease in outstanding business volume to $28.5 billion, the company maintained financial stability, holding $850 million in cash and short-term instruments.
The company also launched the STARS system to enhance operational efficiency and scalability. Farmer Mac management expressed optimism about growth in the Renewable Energy segment and Farm & Ranch volumes, and plans to implement a new securitization program to enhance capital efficiency. Despite a modest decline in core earnings due to a $3.3 million provision for losses, core earnings net of credit increased by 6% year-over-year.
These recent developments reflect Farmer Mac's commitment to operational efficiency, capital optimization, and growth in lucrative sectors. However, the company also acknowledged the impact of decreasing interest rates and tariffs on its operations, while expressing confidence in its growth and capital cushion.
InvestingPro Insights
Federal Agricultural Mortgage Corp (NYSE:AGM), also known as Farmer Mac, has been demonstrating strong financial performance and shareholder value. According to InvestingPro data, the company's market capitalization stands at $2.3 billion, with a P/E ratio of 13.25 based on the last twelve months as of Q3 2024. This relatively modest valuation is particularly interesting given the company's recent stock performance and dividend history.
InvestingPro Tips highlight that AGM has raised its dividend for 13 consecutive years and has maintained dividend payments for 21 consecutive years. This consistent dividend growth aligns with the company's current dividend yield of 2.64%, making it an attractive option for income-focused investors. The company's commitment to shareholder returns is further evidenced by its impressive dividend growth of 27.27% over the last twelve months.
The stock's recent performance has been notably strong, with InvestingPro data showing a 14.52% price total return over the past month and a 38.08% return over the past year. This positive momentum is reflected in the fact that AGM is trading at 97.48% of its 52-week high, indicating investor confidence in the company's prospects.
It's worth noting that while Zachary Carpenter, the Executive Vice President and Chief Business Officer, has sold some shares, the company's overall financial health appears robust. AGM reported an operating income margin of 71.94% for the last twelve months as of Q3 2024, suggesting efficient operations and strong profitability.
For investors seeking more comprehensive analysis, InvestingPro offers 12 additional tips for AGM, providing deeper insights into the company's financial position and market performance.
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