Kimberly Swan, a director at The First Bancorp (FNLC), recently added 1,000 shares. The buy increased her holdings by nearly 15 percent, and came to a total purchase price of just under $30,000.
This is the first insider buy at the company since last December, when the director made a 5,000 share buy. Other company insiders have been buyers in the past three years, including the company President & CEO. The last insider sale occurred in the summer of 2020.
Overall, insiders at the regional bank own 5.7 percent of shares.
The bank has traded flat over the past year, even as other financial stocks have taken a dive on fears of a slowing economy. Shares trade at 8 times earnings, and there’s been low-double-digit revenue and earnings growth in the past year.
Action to take: Investors may like picking up shares here. The recently-raised dividend has resulted in a 4.6 percent dividend yield for buyers today. As long as the bank continues to grow its operations, its share price should trend higher in time.
For traders, the bank has a few options available. The March 2023 $30 calls, with a bid/ask spread of $1.75, are an at-the-money trade that could deliver mid-double-digit profits on a move higher in shares in the coming months.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.