GCBC

Greene County Bancorp($GCBC) Directors Go on Buying Spree as Stock Plunges 30% - Insider Signals with 7,000 Share Purchase

03/20/2025 16:03

Amidst a significant decline in share price, Greene County Bancorp ($GCBC) is witnessing a notable pattern of consistent insider buying, with purchase volumes increasing as the stock price falls further. $GCBC, a regional bank holding company headquartered in Catskill, New York, provides personal and commercial banking services through The Bank of Greene County. Founded in 1889, the company currently has a market capitalization of approximately $426 million, positioning it in the small-cap segment. Over the past six months, $GCBC's stock has lost more than 30% of its value, dropping from around $34 to the $23 range. In mid-March 2025, the stock approached its 52-week low of $23.70. Against this backdrop of declining share prices, company insiders have been actively increasing their stakes. The most striking transaction comes from Director Tejraj S. Hada, who purchased 7,000 shares at an average price of $23.34 on March 19, 2025, representing an investment of approximately $163,357. This marks his second purchase since early November 2024, when he acquired 2,000 shares at $28 per share. Notably, Hada increased his purchase volume by 3.5 times as the stock price fell further. SVP Nick Barzee has also joined the insider buying spree, purchasing 892 shares at $28.57 on October 25, 2024, followed by an additional 840 shares at $26.50 on January 31, 2025. His consistent buying despite the falling share price demonstrates continued confidence in the company's value. Director Jay P. Cahalan likewise made significant purchases in late February 2025, acquiring a total of 3,744 shares over two days, representing an investment of approximately $100,000. This pattern of insider buying, which has continued from October 2024 through March 2025, stands in contrast to CFO Michelle M. Plummer's sales in mid-June 2024, when she sold a total of 12,320 shares for approximately $375,665. Plummer's sales occurred when the stock was trading in the low $30s, after which the price climbed to as high as $37 before declining to current levels in the $23 range. Looking at $GCBC's financial performance, the company reported earnings per share (EPS) of $0.4 for the second quarter of 2024, with pre-tax income of $6.83 million and net income of $6.732 million. The stock currently trades at a price-to-earnings (P/E) ratio of 15.7x, roughly in line with the banking sector average. It's worth noting that despite the recent downturn, with the stock down 17.93% over the past year, $GCBC has delivered impressive long-term performance, with shares up 102.83% over the past five years. The recent decline likely reflects interest rate volatility and broader pressures on the regional banking sector. Insider buying patterns of this nature are often interpreted as positive signals about a company's future prospects. When substantial purchases occur after significant price declines, it typically suggests insiders believe the current stock price undervalues the company's intrinsic worth. For $GCBC investors, key factors to monitor include changes in the interest rate environment, regional economic conditions, and upcoming quarterly earnings reports. Loan quality and deposit retention will be particularly important indicators of the bank's health. While the recent insider buying pattern suggests the current price dip may represent a buying opportunity, investors should also consider the challenging environment facing the banking sector and uncertainties in the regional economy.

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