In a recent move, Jon Stenberg, the President & CEO of Citizens, Inc. (NYSE:CIA), has increased his stake in the company by purchasing additional shares. On September 16, 2024, Stenberg acquired 11,934 shares of Citizens, Inc. Class A Common Stock at a price of $2.99 per share, totaling approximately $35,682.
This transaction has bolstered Stenberg's direct holdings in the company to 89,464 shares. The purchase reflects a significant investment by the CEO into the life insurance company, headquartered in Austin, Texas.
Citizens, Inc. is known for its specialization in life insurance and operates with a SIC code of 6311. The company, incorporated in Colorado, has a fiscal year ending on December 31.
Investors often look to insider buying as a signal of confidence in the company's prospects. Stenberg's acquisition of additional shares may be interpreted as a positive sign by the market. The CEO's decision to invest further in Citizens, Inc. aligns with the interests of shareholders and could be indicative of the executive's belief in the company's future performance.
The stock transaction was filed with the SEC on September 18, 2024, and is publicly accessible for investors seeking to stay informed about the company's insider activities.
In other recent news, Citizens Inc. has been drawing significant attention. Singular Research upgraded the company's stock rating from Hold to Buy, maintaining a steady price target of $3.70. This follows a mixed financial performance, with a 6% revenue increase in Q2 2024, largely due to an 85% surge in first-year premium, offset by a 33% decline in earnings per share (EPS) due to increased expenses.
The insurance company recently appointed Jon Stenberg as the new CEO, succeeding Gerald W. Shields who will continue as Vice Chairman of the Board of Directors. This leadership transition follows a 61% year-over-year growth in insurance issued, amounting to $274.5 million in Q1 2024, and a record $5 billion of insurance in force as of March 31, 2024.
At the 2024 Annual Meeting of Shareholders, executive compensation was approved and directors were elected. The company also confirmed the appointment of Grant Thornton LLP as the independent registered public accounting firm for 2024. These developments reflect recent strategic initiatives and performance, as well as the shareholders' confidence in the company's governance and executive compensation practices.
InvestingPro Insights
In light of the CEO's recent share purchase, a closer look at Citizens, Inc. through InvestingPro data and insights may offer investors additional context. With a market capitalization of $161.08 million, the company is modest in size but not insignificant. A key point to note is the company's P/E ratio, which stands at 7.24, indicating that the stock is trading at a low earnings multiple. This could suggest that the shares are potentially undervalued relative to the company's earnings, making it an attractive buy for value investors.
InvestingPro data also shows a large price uptick over the last six months, with a total return of 44.34%. This significant increase may reflect the market's positive reaction to the company's performance or prospects. Additionally, the company's revenue has grown by 3.43% over the last twelve months as of Q2 2024, which, although modest, indicates a trajectory of growth.
Two InvestingPro Tips that may be particularly relevant to investors are that analysts predict the company will be profitable this year, and the company has been profitable over the last twelve months. These insights, along with the CEO's recent investment, could signal underlying strength in the company's business model and future outlook. It's worth noting that Citizens, Inc. does not pay a dividend, which might be a consideration for income-focused investors.
For those seeking more in-depth analysis, additional InvestingPro Tips are available on the platform. Currently, there are a total of 7 InvestingPro Tips listed for Citizens, Inc., which can be accessed for further detailed investment considerations.
Overall, the combination of the CEO's confidence, favorable earnings multiple, and positive price momentum could provide a compelling narrative for investors considering Citizens, Inc. as a potential addition to their portfolios.
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