Boyan George, Chief Financial Officer of Unity Bancorp Inc. (NASDAQ:UNTY), sold 2,650 shares of the company's common stock on November 22. The shares were sold at an average price of $46.34, with the transaction totaling approximately $122,794. Following this sale, George retains direct ownership of 17,593 shares of common stock. Additionally, he holds 30,051 shares of restricted stock, which includes shares with upcoming vesting dates and dividend reinvested shares.
In other recent news, Unity Bancorp has been under the spotlight for its strong third-quarter performance. The company recorded a core earnings figure of $1.04, surpassing both analyst expectations and consensus. This performance has led to Unity Bancorp maintaining an Overweight rating from Piper Sandler, a renowned financial services firm. The bank's return on assets (ROA) also hit a notable 1.70%, highlighting its competitive stance in the industry.
Unity Bancorp has also declared a quarterly cash dividend of $0.13 per common share, a move reflecting its ongoing financial health. In addition, the company has entered a Change In Control Agreement with James Donovan, its First Senior Vice President and Chief Lending Officer, outlining the benefits he will receive if his employment is terminated following a change in control.
Moreover, Unity Bancorp has initiated a new share repurchase program, authorizing the buyback of up to 500,000 shares, or approximately 5% of its outstanding common stock. These recent developments underscore Unity Bancorp's commitment to its shareholders and its continued improvement in financial performance.
InvestingPro Insights
Unity Bancorp Inc. (NASDAQ:UNTY) has been demonstrating strong financial performance, which may provide context for the recent insider sale by CFO Boyan George. According to InvestingPro data, UNTY's stock has shown impressive returns, with a 76.14% price total return over the past year and a substantial 67.59% return in the last six months. This performance has pushed the stock to trade near its 52-week high, with the current price at 96.94% of that peak.
The company's financial health appears robust, with a market capitalization of $465.35 million and a P/E ratio of 11.74, which is relatively modest for the banking sector. UNTY's revenue for the last twelve months stands at $100.81 million, with a noteworthy operating income margin of 53.77%, indicating efficient operations.
InvestingPro Tips highlight that Unity Bancorp has raised its dividend for 11 consecutive years, which may be attractive to income-focused investors. The current dividend yield is 1.13%, with a dividend growth rate of 8.33% over the last twelve months. This consistent dividend increase, coupled with the stock's strong performance, suggests management's confidence in the company's financial stability and growth prospects.
It's worth noting that while the stock has shown strong returns, it is trading at a high P/E ratio relative to near-term earnings growth, as indicated by another InvestingPro Tip. This could be a factor for investors to consider when evaluating the stock's current valuation.
For readers interested in a more comprehensive analysis, InvestingPro offers 12 additional tips for UNTY, providing a deeper insight into the company's financial position and market performance.
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