TCBX

Third Coast Bancshares($TCBX) CFO Scoops Up $293,000 in Shares After Price Drop, Multiple Officers Join Buying Spree

05/01/2025 10:28

Third Coast Bancshares ($TCBX) Chief Financial Officer Richard Mcwhorter has made a significant insider purchase of nearly $293,000 following a recent stock price decline, drawing considerable investor attention. On April 28, Mcwhorter acquired 10,000 shares at an average price of $29.29 per share. This transaction came shortly after $TCBX shares dropped from over $33 in early April to the $27 range. Notably, this purchase was executed pursuant to a Rule 10b5-1 trading plan. Even more intriguing is the cluster buying pattern that emerged, with multiple officers purchasing shares simultaneously. William Bobbora acquired 2,400 shares ($68,424) and Bart Caraway purchased 1,000 shares ($29,167.50) on the same day. Two days later, on April 30, officer Liz Eber added 70 shares to her position. Such cluster buying typically signals strong management confidence in a company's value. $TCBX has demonstrated impressive stock performance over the past year. Starting around $20 in June 2024, shares climbed to a peak of $38.64 by February 2025, representing nearly a 90% gain. However, early April brought a significant correction, with the stock currently trading at $29.80. William Bobbora's consistent buying pattern stands out particularly. He has steadily acquired shares across six separate transactions from June 2024 through April 2025, continuing to purchase even as the stock price appreciated. This suggests strong conviction in the company's long-term growth potential. Beyond insider transactions, Third Coast Bancshares has delivered solid financial results. The company reported adjusted earnings of $0.78 per share for Q1 2025, surpassing both the prior year's $0.61 and analyst expectations of $0.70. Revenue reached $45.90 million, representing a 13.6% year-over-year increase. This marks the third consecutive quarter of beating analyst projections. However, not all signals are positive. Raymond James downgraded $TCBX from 'outperform' to 'market perform' on April 2, citing concerns about growth slowdown and investor caution regarding the company's balance sheet. This downgrade likely contributed to the early April stock decline. Despite this, the average analyst opinion remains 'buy' with a median 12-month price target of $39.00, approximately 31% above current levels. This suggests the recent price correction may present a potential buying opportunity. Third Coast Bancshares is a small bank holding company headquartered in Texas, providing commercial banking solutions to small and medium-sized businesses and professionals. In 2024, the company's annual revenue reached $165.7 million, a 17% increase year-over-year, while net income grew by 50% to $42.9 million. With a market capitalization of approximately $400 million and a P/E ratio of 10.10, the company trades below industry averages. The company recently completed a $200 million commercial real estate loan securitization, a strategic move aimed at enhancing capital ratios and reducing credit risk. Management is focused on achieving an annual loan growth target of approximately $325 million while exploring potential share buybacks to enhance shareholder value. Industry experts anticipate Third Coast Bancshares will maintain above-average growth rates. The company forecasts an average revenue growth of 9% per annum over the next two years, outpacing the projected 6.9% growth for the broader U.S. banking industry. Risk factors include potential changes in the interest rate environment, regulatory tightening, and increased competition. The increase in non-performing loans to 0.70% warrants monitoring, although recent improvements and aggressive insider buying provide strong signals that could offset these concerns. In conclusion, the substantial insider purchases by the CFO and multiple officers, combined with solid financial performance and growth projections exceeding industry averages, suggest Third Coast Bancshares may offer an attractive investment opportunity at current price levels. The timing of these insider buys following the stock's decline sends a powerful signal that management believes the company's intrinsic value exceeds its current market price.

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