Daniel J. Dalton, Chairman of the Board at Parke Bancorp, Inc. (NASDAQ:PKBK), recently sold 5,000 shares of the company's common stock. The shares were sold at an average price of $20.958 each, amounting to a total transaction value of $104,789. Following this sale, Dalton holds 71,319 shares directly. Additionally, he maintains indirect ownership of 56,729 shares through a Grantor Charitable Remainder Trust and 1,367 shares under the Uniform Transfers to Minors Act (UTMA).
In other recent news, Parke Bancorp, Inc. has announced a cash dividend of $0.18 per share, scheduled for payment in October, as well as a new stock repurchase program. The plan, approved by the company's Board of Directors, authorizes the buyback of up to 5% of the company's common stock over the next twelve months. The repurchases will occur in the open market and will adhere to regulations set by the Securities and Exchange Commission (SEC).
Parke Bancorp's President and CEO, Vito S. Pantilione, stated that the repurchase program is a crucial part of the company's capital management strategies. He noted that the company views its stock as an attractive investment at current prices and believes that repurchasing shares will enhance shareholder value.
These recent developments underscore the company's commitment to return capital to shareholders while maintaining a robust capital base. However, the company also highlighted potential risks and uncertainties that could lead to actual results differing significantly from expectations. Such risks include the company's ability to maintain a strong capital base, pay dividends, enhance shareholder value, and potential regulatory actions.
InvestingPro Insights
While Daniel J. Dalton's recent sale of Parke Bancorp shares might raise eyebrows, it's important to consider the broader financial context of the company. According to InvestingPro data, Parke Bancorp's stock has shown impressive momentum, with a 30.31% price total return over the past six months. This aligns with an InvestingPro Tip highlighting a "large price uptick over the last six months."
Despite the recent insider sale, Parke Bancorp maintains a solid dividend profile. An InvestingPro Tip reveals that the company "has raised its dividend for 10 consecutive years," demonstrating a commitment to shareholder returns. Currently, the stock offers a dividend yield of 3.42%, which may be attractive to income-focused investors.
From a valuation perspective, Parke Bancorp appears reasonably priced with a P/E ratio of 8.79, significantly below many of its peers in the banking sector. This could suggest potential upside for the stock, especially considering the company's profitability over the last twelve months, as noted in another InvestingPro Tip.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights, with 6 more tips available for Parke Bancorp on the platform.
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