BWB

Bridgewater Bancshares ($BWB): EVP's Preferred Stock Purchase and Q1 Earnings Surge Signal Turnaround Amid Stock Rebound

05/01/2025 21:25

As Bridgewater Bancshares ($BWB) experiences a notable rebound in its stock price, a recent share purchase by a senior executive has captured market attention. EVP Mary Crocker acquired 190 preferred shares on April 30, 2025, at $18.75 per share, totaling $3,562.50. This marks her second purchase of preferred shares, following a similar acquisition of 330 shares on October 29, 2024. These depositary shares represent ownership of a 1/100th interest in the company's 5.875% Non-Cumulative Perpetual Preferred Stock, Series A. Headquartered in St. Louis Park, Minnesota, Bridgewater Bancshares is a bank holding company founded in 2005 that provides various financial services through its subsidiary, Bridgewater Bank, including commercial loans, deposit products, and online banking services. With a market capitalization of approximately $362 million, $BWB is classified as a small-cap bank stock and has been showing remarkable growth momentum recently. Notably, Crocker's preferred share purchases stand in contrast to the recent trading patterns of other insiders. During the latter half of 2024, several executives and directors divested their holdings. CEO Jerry J. Baack sold 11,500 shares at $14.15 on September 4, 2024, while Director Thomas P. Trutna sold 5,000 shares at $14.11 on the same day. In October, EVP Jeffrey Shellberg divested 20,000 shares at $14.75, and Director David B. Juran sold a total of 20,000 shares across three transactions. The selling trend continued through November and December, culminating with President Joseph M. Chybowski's sale of 3,000 shares at $15.51 on December 11. Crocker's preferred share purchases amid this selling trend may reflect confidence in the company's long-term value. Preferred shares are typically favored by investors seeking stable dividend income and can be seen as an indicator of trust in the company's financial stability. $BWB's stock price has surged approximately 40% from around $11 in early June 2024 to the $15 range by late April 2025. The stock experienced particularly strong momentum from mid-July to early August 2024, followed by a downturn from mid-December 2024 to early January 2025. After another significant drop in early April 2025, the stock rebounded sharply toward the end of April—coinciding with the announcement of improved first-quarter results on April 23. In its Q1 2025 earnings report, Bridgewater Bancshares posted adjusted earnings of 31 cents per share, surpassing both the prior year's 24 cents and analyst expectations of 29 cents. Revenue increased by 23.3% year-over-year to $32.29 million, with net income reaching $8.62 million. These results demonstrate a clear transition to growth after somewhat sluggish performance in the latter half of 2024. $BWB's financial performance has indeed shown a gradual improvement trend. While the company reported slightly declining EPS and revenue in Q2 and Q3 of 2024 compared to the previous year, 2025 has marked a distinct recovery. Revenue grew by 10.4% year-over-year in Q4, followed by substantial growth in both revenue and EPS in Q1 2025. Financially, $BWB displays stability with trailing twelve-month revenue of $111.39 million and net income of $30.57 million, maintaining an impressive profit margin of 31.09%. The company has secured ample liquidity with $170.34 million in cash, against debt levels of $443.02 million. From a valuation perspective, the stock trades at reasonable multiples within the banking sector, with a P/E ratio of 13.72, P/S ratio of 3.77, and P/B ratio of 1.05. Analysts remain optimistic about $BWB's prospects. The average analyst rating is 'buy,' with a median 12-month price target of $17.00, suggesting upside potential from current levels. The stock has earned a Zacks Rank #1 (Strong Buy), indicating high expectations for near-term performance based on earnings estimate revisions and positive surprises. However, investors should consider the broader U.S. market environment. Since early 2025, U.S. markets have faced several challenges, including economic slowdown concerns, inflationary pressures, and decelerating employment growth. The banking sector, in particular, tends to be sensitive to interest rate environments, meaning Federal Reserve monetary policy changes could impact $BWB's performance. Nevertheless, Bridgewater Bancshares maintains competitiveness through its niche strategy focused on the Minnesota regional economy and diversification of its commercial loan portfolio. Recent performance improvements suggest that the company's business model continues to function effectively in the current market conditions. EVP Mary Crocker's recent preferred share purchase might be interpreted as another signal supporting this positive outlook.

You can receive notifications when news is published.