BUSE

First Busey Corp ($BUSE) Directors Snap Up $1M in Consecutive Buys, 4.5% Dividend Yield at 20% Discount

06/02/2025 20:58

First Busey Corp ($BUSE) insiders have been aggressively buying shares throughout 2025, drawing Wall Street's attention to the undervalued Illinois-based regional bank. Led by Director Stanley Bradshaw's consecutive purchases, the insider buying spree suggests significant upside potential in this dividend-paying community bank. SEC filings from January through May reveal Bradshaw purchased approximately $1 million worth of $BUSE shares across eight separate transactions. His average purchase price ranged from $21-24 per share, close to current trading levels. Fellow Director Karen Jensen also accumulated about $430,000 worth of shares during the same period, demonstrating strong management confidence. This bullish insider activity contrasts sharply with 2024's pattern. While President Van Dukeman and Officer Amy Randolph sold significant stakes in July 2024, the tide has turned decisively toward accumulation in 2025. Notably, these purchases occurred during price weakness, suggesting insiders view current levels as attractive entry points. First Busey, with a market cap of $1.84 billion, operates as a diversified financial services company founded in 1868 and headquartered in Champaign, Illinois. Beyond traditional banking, the company provides wealth management services and payment technology solutions through its FirsTech division. The March 2025 completion of the CrossFirst Bankshares acquisition marks a pivotal growth milestone. While Q1 2025 results showed a $30 million net loss due to acquisition-related costs, this was anticipated. On an adjusted basis, the company delivered $0.57 per share, beating analyst expectations. More importantly, the CrossFirst integration significantly expanded the customer base and geographic footprint, positioning First Busey for enhanced long-term profitability. Technically, $BUSE peaked near $28 in mid-July 2024 before correcting to current levels around $22 – roughly 20% below its recent highs. The aggressive insider buying has occurred within this discounted range. With a beta of 0.77, the stock exhibits lower volatility than the broader market, appealing to defensive investors. Financially, First Busey offers an attractive 4.5% dividend yield, compelling in today's rate environment. Recent preferred stock issuance raised $860 million, strengthening the balance sheet with over $1.2 billion in cash reserves. This solid liquidity position supports both dividend sustainability and future growth investments. The regional banking sector faces headwinds from Federal Reserve policy uncertainty and economic volatility, but First Busey maintains a relatively stable position. Fee-based revenues from wealth management and payment technologies help offset interest income fluctuations. The FirsTech division's mobile payment and electronic processing capabilities differentiate the company in the competitive fintech landscape. Analysts project earnings improvement beginning in the second half as CrossFirst integration benefits materialize. The average price target of $26.50 implies roughly 20% upside from current levels. Maintaining 'Buy' ratings, analysts highlight dividend yield and acquisition synergies as key investment themes. Broader market volatility from trade tensions and geopolitical risks continues, but regional bank fundamentals remain relatively predictable. Dividend-paying stocks like First Busey appeal to investors seeking stable income streams amid uncertainty. The insider buying pattern reveals management's strong conviction in intrinsic value. Bradshaw's persistent accumulation during March's market selloff suggests strategic positioning beyond mere portfolio rebalancing. Key upcoming catalysts include Q2 earnings on July 22, when CrossFirst integration progress should become more apparent. Markets will focus on net interest margin improvement and non-interest income growth as acquisition synergies begin materializing.

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