BUSE

First Busey Corp ($BUSE): Directors Buy $500K After Executive Peak Sales... 'Is Now the Opportunity?'

06/17/2025 20:06

First Busey Corp ($BUSE) is a regional bank holding company headquartered in Champaign, Illinois, with a rich history dating back to 1868. The company operates traditional banking services alongside wealth management and FirsTech, a fintech payment solutions business, employing approximately 1,965 people. Notably, the company completed the acquisition of CrossFirst Bankshares in March this year to expand its business footprint. Currently, $BUSE's insider trading patterns are capturing investors' attention due to a fascinating scenario that has unfolded over the past year. On July 5, 2024, when the stock was trading at $23.54, significant executive selling occurred. President Van Dukeman sold 16,539 shares (approximately $389,000), EVP John Powers sold 6,090 shares (approximately $143,000), and Officer Amy Randolph sold 7,612 shares (approximately $179,000). At the time, the stock was forming highs in the $26-27 range, and subsequently, the stock indeed declined. By April 2025, it had plummeted to the $18-19 range, demonstrating the executives' well-timed selling. However, a completely different pattern has emerged in 2025. Directors have begun aggressive buying during the stock's decline. On January 31, Director Stephen King purchased 16,427 shares at $24.53, investing approximately $403,000, while Director Stanley Bradshaw has continued consistent buying from January through June. Bradshaw's trading pattern is particularly noteworthy. He has steadily purchased shares 15 times from February to June, with prices ranging from $21.54 to $24.23. In his most recent transaction on June 13, he added 1,000 shares at $22.40. Directors Karen Jensen and Steven Caple also participated in multiple purchases during May-June. This insider trading pattern becomes more meaningful when considered alongside the company's current situation. $BUSE recorded a $30 million net loss in Q1 due to CrossFirst acquisition-related costs, but the adjusted earnings per share of $0.57 announced in April exceeded analyst expectations of $0.53. Additionally, the company strengthened its capital base through a May issuance of 8.6 million preferred shares and maintains sufficient liquidity with approximately $1.24 billion in cash. Currently, $BUSE trades around $22.30, approximately 17% below its July 2024 peak. However, considering the P/E ratio of 20.59x and dividend yield of 4.47%, it maintains reasonable valuation within the regional banking sector. Moreover, the improving overall U.S. market sentiment is positive. In June, tariffs were significantly reduced from 145% to 30% due to progress in U.S.-China trade negotiations, and consumer confidence rose 16% from 52.2 to 60.5. The key point investors should note is the directors' continued buying at current price levels. Particularly, Director Stanley Bradshaw has invested over $500,000 total in the $21-24 range, showing strong buying conviction. However, there are factors requiring caution. The regional banking sector still faces concerns about economic slowdown and credit risk pressures, with continued net interest margin compression. Additionally, short-term earnings volatility is expected during the CrossFirst integration process. In a positive scenario, if CrossFirst acquisition synergies materialize and FirsTech business growth accelerates, the stock could rise to the analyst target of $26.20. The base scenario expects stable returns based on the 4.47% dividend yield at current levels. However, during macroeconomic deterioration or sudden interest rate environment changes, regional banks characteristically face additional downward pressure. Synthesizing the current situation, the contrasting patterns of executive selling at 2024 highs and director buying at 2025 lows present an intriguing investment opportunity. This can be interpreted as directors viewing current price levels as attractive, making it a stock worth considering from a medium to long-term perspective.

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