BLFY

Blue Foundry Bancorp ($BLFY) Executives Signal 'Undervaluation' with Consecutive Purchases During Stock Decline

06/07/2025 15:32

Blue Foundry Bancorp ($BLFY) executives are drawing market attention with consecutive insider purchases during a period of stock price decline. This small-cap regional bank with a market capitalization of approximately $198.6 million has experienced extreme volatility over the past year, but strong insider buying signals are emerging. The most notable movement comes from CRO Keith Owes' consecutive purchases. He bought 1,000 shares at $11.02 per share in September 2024, followed by another 1,000 shares at $9.66 per share in May 2025. This suggests he views each price decline as a buying opportunity. Adding to this confidence, EVP Aleksandr Malkiman also purchased 1,000 shares at $8.80 per share on June 5, joining the executive team's vote of confidence. **This contrarian buying pattern by management strongly suggests they believe the current share price is excessively discounted relative to intrinsic value.** $BLFY's stock price began at $8.84 in June 2024, surged to $11.40 in July (a 29% rally), then underwent an extended correction to the current level of $8.81. This represents a return to levels from nearly a year ago, giving back all previous gains. This contrasts sharply with Director Robert Thomas Goldstein's sale of 3,500 shares at $10.79 per share in August 2024. Blue Foundry Bancorp operates as a regional commercial bank providing traditional banking services including lending, deposits, and asset management to individual and business customers primarily in New York State. As a small regional bank, it tends to be more sensitive to local economic conditions and interest rate environment changes compared to larger institutions. Financial performance has been challenging. Recent quarterly results show continued losses, with Q3 2024 posting a loss of 19 cents per share compared to a 6-cent loss in the prior year period, representing a widening deficit. Revenue also declined 16.6% year-over-year to $8.84 million, missing analyst expectations of $9.96 million. However, Q1 2025 showed some improvement with revenue increasing 5.9% year-over-year to $10.54 million, exceeding analyst expectations. **For small-cap bank investors, the consistent insider buying despite performance volatility can be interpreted as an important signal.** Considering the current interest rate environment, small banks face both the potential for net interest margin improvement from Federal Reserve policy changes and the risk of increased non-performing loans. Regional banks with significant commercial real estate exposure are particularly pressured by ongoing sector weakness. Analysts currently maintain a 'Hold' rating on $BLFY with a price target of $10.38, suggesting approximately 18% upside potential from current levels. This somewhat aligns with management's consecutive buying perspective. In the near term, the upcoming Q2 earnings release will be a key catalyst. Whether the Q1 revenue growth trend can continue and if loss margins can narrow will be critical factors determining future stock direction. Federal Reserve policy decisions and regional economic conditions will also serve as important external variables for this small-cap bank stock. **From a long-term perspective, consistent insider buying can serve as strong evidence supporting the attractiveness of current valuations.** Ultimately, $BLFY's future stock performance will depend on earnings improvement and interest rate environment changes, while management's consecutive purchases reflect insiders' judgment that investment value exists at current levels, making it worthy of attention.

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