FBNC

Insider Buy Signals Reverse Course at First Bancorp($FBNC) as Director Invests $238K Amid 45% Profit Surge

05/23/2025 22:22

A notable insider buying signal emerged at North Carolina-based regional bank First Bancorp ($FBNC) on May 22, as board member Frederick Taylor invested approximately $238,742 to purchase 5,800 shares at an average price of $41.16 per share, closely aligned with recent trading levels. This purchase stands in stark contrast to the insider selling pattern that has dominated over the past year. From June 2024 through early May 2025, there were seven insider sales, including a particularly substantial divestment by Director Mason Y. Garrett in July 2024, who sold 52,800 shares for approximately $2.29 million. It's worth noting that these insider sales largely coincided with periods of share price appreciation. While company President Michael Mayer also sold 3,000 shares for about $128,880 on May 12, this transaction was executed pursuant to a pre-established Rule 10b5-1 trading plan, suggesting it was more likely part of personal portfolio management rather than an immediate reaction to market conditions. Taylor's recent purchase, however, reverses this trend and may reflect an insider's positive outlook for the company. This shift in insider trading patterns should be interpreted alongside $FBNC's recent financial performance, which has been remarkably strong. The company's Q1 2025 results were impressive, with revenue increasing 15% year-over-year to $104.7 million and, even more significantly, net income surging 45% to $36.4 million. Earnings per share reached $0.88, exceeding analyst estimates by 13%. Profit margins also improved substantially from 28% to 35% compared to the previous year. $FBNC's stock has experienced considerable volatility over the past year. Starting around $30 in June 2024, it climbed to about $48 by late November, then plunged to $36 in early April 2025, before recovering to the $42 level in May. Still, it remains below its 52-week high of $50.34. In this context, Taylor's purchase might indicate his belief that the shares are undervalued. The company's financial health appears robust. Cash reserves stand at $772.44 million, more than seven times its total debt of $106.31 million, demonstrating strong liquidity that should enable stable operations even in challenging economic environments. Future prospects also look promising. Analysts forecast First Bancorp's revenue to grow at an average annual rate of 16% over the next two years, significantly outpacing the U.S. banking industry's average growth rate of 7.1%. In recent months, the consensus EPS estimate for 2025 has been revised upward from $3.27 to $3.47. From a valuation perspective, $FBNC currently trades at approximately 19.5 times trailing twelve-month earnings, with a forward P/E of 14.64 and a price-to-book ratio of 1.13. While this represents a slight premium for a regional bank, it could be justified by the company's high growth rate and improved profitability. $FBNC is also undergoing leadership changes. G. Adam Currie has been promoted to CEO of subsidiary First Bank, while Michael G. Mayer will continue as President of First Bancorp until early 2026. This structured leadership transition should help strengthen management continuity and strategic focus. The broader U.S. market in spring 2025 has been influenced by easing trade tensions and positive economic indicators, though concerns persist about tariff issues and the low likelihood of interest rate cuts before September. In this uncertain environment, insider buying becomes an even more meaningful signal. It's particularly noteworthy that $FBNC, a small regional bank, continues to maintain solid performance amid competition from larger banks and fintech companies. In conclusion, Director Frederick Taylor's recent purchase represents a positive signal that breaks from the previous selling pattern and likely reflects insider confidence in the company's strong financial performance and bright outlook. Investors should consider this insider signal alongside $FBNC's robust growth rate, improving profitability, and stable financial position. While competitive pressures in the banking industry and economic uncertainties remain risk factors, the recent insider buying and strong financial results support a positive outlook for $FBNC.

You can receive notifications when news is published.