David S. Haddad Jr., a director at Sound Financial Bancorp, Inc. (NASDAQ:SFBC), recently sold a portion of his holdings in the company. According to the latest filing, Haddad disposed of 356 shares of common stock at a price of $53.78 per share, amounting to a total transaction value of $19,145. Following this transaction, Haddad retains ownership of 3,528 shares directly.
In addition to the sale, Haddad holds several stock options with varying exercise prices and expiration dates. These include options to purchase 862 shares at $18.36, 250 shares at $33.50, and 120 shares at $36.26, among others. These options are fully exercisable or vest in installments over the coming years.
In other recent news, Sound Financial Bancorp, Inc. has made significant amendments to the change in control agreements for top executives including EVP and COO Heidi Sexton and EVP, Chief Strategy Officer, and CFO Wes Ochs. These changes, as reported in a recent SEC filing, became effective as of October 30, 2024. The revisions, approved by the Boards of Directors of both Sound Financial Bancorp and its subsidiary Sound Community Bank, adjust the definition of "Involuntary Termination" for the officers. It now stipulates a change in the officer's principal workplace to a location more than 35 miles from their current site, as opposed to the Bank's headquarters. For four agreements predating 2023, the definition of "Change in Control" has been updated to match the language used in agreements with officers from 2023. These amendments aim to clarify the conditions under which the executives could be considered to have been involuntarily terminated, which could potentially impact their compensation or benefits. This development aligns with the trend of companies reassessing executive compensation and severance agreements in response to evolving work environments and locations.
InvestingPro Insights
While David S. Haddad Jr.'s recent sale of Sound Financial Bancorp (NASDAQ:SFBC) shares may raise eyebrows, it's essential to consider the broader financial picture of the company. According to InvestingPro data, SFBC's market capitalization stands at $138.81 million, with a P/E ratio of 35.86, indicating that the stock is trading at a relatively high earnings multiple.
Despite this valuation, SFBC has demonstrated strong performance in recent periods. InvestingPro Tips highlight that the company has achieved a high return over the last year, with a remarkable 55.62% price total return. Moreover, SFBC is trading near its 52-week high, currently at 97.34% of that peak, suggesting ongoing investor confidence.
It's worth noting that SFBC has maintained dividend payments for 12 consecutive years, a testament to its financial stability. The current dividend yield is 1.39%, which may appeal to income-focused investors. However, potential investors should be aware that the company suffers from weak gross profit margins, which could impact future profitability.
For those seeking a more comprehensive analysis, InvestingPro offers additional insights with 9 more tips available for SFBC, providing a deeper understanding of the company's financial health and market position.
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