William Campbell, a director at FNB Corp (FNB), recently bought 2,500 shares. The buy increased his position by 2%, and came to a total cost of $33,713.
Campbell was the last insider buyer, with three buys in February, totaling 4,350 shares at the cost of over $125,000. Going further back, insider activity has been more mixed, although buyers have continued to outnumber sellers. The last insider sale occurred in February 2023.
Overall, FNB insiders own 1.2% of shares.
The Pittsburgh-based regional bank is up 19% over the past year, slightly lagging the overall market.
Operations have been mixed, with a 2% drop in revenues. However, the bank has a 31% profit margin, indicating that they’re making reasonable loans rather than sacrificing quality for short-term income.
On the valuation front, shares still trade inexpensively at 9 times forward earnings. And the bank trades at about a 20% discount to its book value, offering some more upside potential going forward.
Action to take: Investors may like shares here or on any market drop. The bank has some upside potential, and given its smaller size could be a good buyout candidate from a bigger bank.
FNB also pays a 3.6% dividend.
For traders, shares are likely to keep trending higher. The August $12.50 calls, last trading for about $1.50, are already $1.20 in-the-money and could see mid-to-high double-digit returns.
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 company mentioned in this article.