FGBI

First Guaranty Bancshares ($FGBI) Directors Deploy $2 Million in Purchases Following 54% Stock Plunge

04/24/2025 00:48

Louisiana-based regional bank First Guaranty Bancshares ($FGBI) has seen its insiders step up with significant share purchases after the stock experienced a substantial decline in recent months. $FGBI shares, which traded above $14.70 in early December 2024, saw a steep decline in early 2025, bottoming out at $6.69 by mid-March. This represented a more than 54% drop from its peak, with over 36% of that decline occurring in just one month from mid-February to mid-March 2025. Following this sharp decline, key company insiders moved to purchase substantial amounts of stock. On March 31, board members William K. Hood and Edgar R. Smith III each purchased 98,460 shares, representing an investment of $833,956 each. Director Bruce McAnally also purchased 24,615 shares worth $208,489 on the same day. The following day, on April 1, Director Marshall T. Reynolds acquired 8,460 shares worth $71,656. Particularly noteworthy is that Director Edgar Smith III made additional purchases on April 2 and 3, acquiring 3,896 and 1,337 shares respectively, for an additional investment of $40,838. The total insider investment during this period amounts to approximately $2 million, which is significant for a small-cap bank with a market capitalization of about $100 million. These insider purchases came at a time when First Guaranty Bancshares had been experiencing some performance challenges. In early February 2025, the company reported earnings of 3 cents per share for the fourth quarter of 2024, down from 6 cents in the same period a year earlier. Quarterly revenue increased by 7.3% to $22.58 million, but fell short of analysts' expectations of $23.01 million. According to recent financial data, FGBI has reported total annual revenue of $93.14 million and net income of $10.12 million. The company's earnings per share (EPS) stands at $0.81, giving it a price-to-earnings ratio of approximately 12.33 at current share prices. Notably, the company's price-to-book ratio is 0.56, suggesting that the stock is trading at a significant discount to its book value. In recent quarters, the company has seen a revenue decline of 10.90% year-over-year, with earnings dropping by 22.50%. However, the bank maintains a relatively healthy balance sheet with $564.46 million in cash against $213.56 million in debt. Analysts currently maintain a 'hold' rating on $FGBI shares, with a median price target of $12.75, implying an upside potential of approximately 28% from current levels. Market observers typically interpret such substantial insider buying as a positive signal regarding the company's long-term value. Particularly, the convergence of multiple directors making significant purchases after a steep stock decline suggests an internal conviction that the shares are undervalued at current prices. As the financial services industry faces challenges from interest rate volatility and economic uncertainty, many regional banks have been under pressure. However, First Guaranty Bancshares' insiders are putting their capital behind their belief that their bank can weather these challenges. Amid continued market volatility, $FGBI has rebounded in recent weeks following its early April lows and currently trades around $9.95. While this represents a roughly 48% recovery from its mid-March lows, the stock still trades at a considerable discount to its late 2024 highs.

You can receive notifications when news is published.