Edgar Smith, a director at Business First Bancshares (BFST), recently reported the purchase of 17,109 shares. The buy increased his holdings by 1 percent, and came to a total cost of $400,220.
He was joined by another director who bought 3,664 shares, paying just over $80,100. Other company directors have been buyers of shares over the past two years, with just one insider sale from a director over the same time period.
Overall, insiders at the regional bank own about 6.3 percent of shares.
The bank has slid nearly 28 percent in the past year, with the recent banking crisis taking a toll on the share price. However, Business First has grown both revenues and earnings by mid-double-digits in the past year, and the bank now trades at about a 20 percent discount to its book value.
Action to take: Smaller banks trading at a discount to their book tend to be buyout targets. Investors may want to use any uncertainty in the banking sector over the next few months to buy shares of such banks. Business First also pays out a 2.9 percent dividend at today’s prices.
For traders, the July $17.50 calls, last going for about $0.80, offer mid-to-high double-digit returns on a bounce higher in BFST shares in the months ahead.
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.