David W. Garner, Executive Vice President and Chief Accounting Officer at Simmons First National Corp (NASDAQ:SFNC), recently sold shares of the company's common stock. According to a Form 4 filing with the Securities and Exchange Commission, Garner sold 5,090 shares at a weighted average price of $25.25 per share, totaling approximately $128,522. Following this transaction, Garner holds 64,966 shares directly.
In addition to the sale, Garner exercised options to acquire 5,090 shares at $22.20 per share, which reflects adjustments from a 2-for-1 stock split conducted by the company. These transactions were part of routine trading activities and do not necessarily indicate any strategic shift in Garner's investment in Simmons First National Corp.
In other recent news, Simmons First National Corporation announced significant changes in its executive team, with CEO Robert "Bob" Fehlman set to retire at the end of 2024. George Makris, Jr., the current Executive Chairman, will assume the roles of Chairman and CEO on January 1, 2025. Additionally, the company welcomed Christopher Van Steenberg as the new Chief Operating Officer.
Simmons First National reported its third-quarter earnings, with an adjusted GAAP earnings per share (EPS) of $0.20, which fell short of the consensus estimate of $0.33. The bank's earnings were influenced by items such as a $28.4 million loss from the sale of securities and approximately $0.4 million in non-core expenses. In response to these figures, Baird raised the price target for Simmons First National to $24, maintaining a neutral stance on the stock.
The bank has also seen early success in repricing its deposits following the initial Federal Reserve rate cut. As per Baird, the bank's net interest margin (NIM) and net interest income (NII) are expected to improve due to strong asset and liability repricing tailwinds coupled with modest loan growth. Simmons First National is also focusing on reducing core expenses by consolidating branches and reallocating savings towards revenue-generating initiatives.
Further, Simmons First National anticipates a stable net interest margin in the fourth quarter, with potential improvements in 2025 depending on Federal Reserve actions. The bank is also optimistic about improving loan demand as rates decrease, maintaining a disciplined focus on profitability over aggressive expansion.
These recent developments highlight Simmons First National's strategic initiatives and disciplined approach to growth, focusing on profitability and maintaining a strong balance sheet.
InvestingPro Insights
To provide context to David W. Garner's recent stock transactions, let's examine some key financial metrics and insights for Simmons First National Corp (NASDAQ:SFNC).
According to InvestingPro data, SFNC has a market capitalization of $3.07 billion and a P/E ratio of 23.9. The company's stock has shown strong performance recently, with a 24.87% price total return over the last three months and an impressive 54.21% return over the past year. This robust performance aligns with an InvestingPro Tip indicating that SFNC has experienced a "strong return over the last three months" and a "high return over the last year."
Notably, SFNC has maintained a consistent dividend policy. An InvestingPro Tip highlights that the company "has raised its dividend for 13 consecutive years" and "has maintained dividend payments for 51 consecutive years." This commitment to shareholder returns is further supported by the current dividend yield of 3.43% and a dividend growth rate of 5.0% over the last twelve months.
While Garner's recent stock sale might raise questions, it's important to note that SFNC's financial health appears solid. The company has been profitable over the last twelve months, and analysts predict continued profitability this year. Additionally, 4 analysts have revised their earnings upwards for the upcoming period, suggesting positive expectations for SFNC's near-term performance.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for SFNC, providing a deeper understanding of the company's financial position and market outlook.
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