Brian R. Boal, a director at First United Corp (NASDAQ:FUNC), has recently increased his stake in the company. According to a recent SEC filing, Boal purchased 66.467 shares of First United Corp common stock at a price of $31.74 per share, totaling approximately $2,109. This acquisition was made through a dividend reinvestment program offered via his brokerage account. Following this transaction, Boal now holds 18,992.813 shares directly.
In other recent news, First United Corporation has announced significant financial moves. The company declared a quarterly cash dividend of $0.22 per share, scheduled for payment on November 1, 2024, to stockholders of record as of October 18, 2024. This action aligns with First United Corporation's consistent practice of distributing profits to its shareholders.
In addition to the dividend declaration, First United Corporation has initiated a new stock repurchase program. The program, effective from August 30, 2024, authorizes the company to repurchase up to 600,000 shares of its common stock, which accounts for about 9.3% of its issued and outstanding shares. The repurchase program will transpire over an 18-month period, with the specifics of timing and volume at the discretion of the company's leadership.
These recent developments highlight First United's commitment to shareholder value. However, the company clarified that there's no guarantee that any shares will be repurchased, with the actual number of shares to be bought back depending on various factors. Updates on the repurchase program will be provided in the company's periodic filings with the Securities and Exchange Commission.
InvestingPro Insights
Brian R. Boal's recent purchase of First United Corp (NASDAQ:FUNC) shares aligns with several positive indicators highlighted by InvestingPro. The company's stock has shown remarkable performance, with a 92.43% total return over the past year and a 41.5% return in the last six months. This strong momentum is further supported by the fact that FUNC is currently trading near its 52-week high, at 99.5% of that peak.
InvestingPro Tips suggest that First United Corp has raised its dividend for 7 consecutive years, demonstrating a commitment to shareholder returns. This is particularly relevant to Boal's acquisition through a dividend reinvestment program. The company's current dividend yield stands at 2.78%, with a 10% dividend growth rate over the last twelve months.
From a valuation perspective, FUNC appears reasonably priced with a P/E ratio of 12.99 and a price-to-book ratio of 1.18. The company's profitability is also noteworthy, with an operating income margin of 31.1% for the last twelve months as of Q3 2024.
These metrics provide context to Boal's decision to increase his stake, suggesting confidence in the company's financial health and future prospects. InvestingPro offers additional insights, with 10 more tips available for investors seeking a deeper understanding of First United Corp's potential.
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