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In a recent transaction, Mr. Jagroop Gill, director of United Securities Bancshares, increased his stake in the company by purchasing additional shares. On March 14, 2024, Gill acquired 18 shares of United Security Bancshares (NASDAQ: UBFO) common stock at a price of $7.50 per share, for a total price of $135.
The acquisition reflects the director's growing investment in the bank, which falls within the national commercial banking industry. Following the acquisition, Mr. Gill's direct holdings in the company now totaled 1,050,275 shares, which are held in trust.
Investors often monitor insider transactions because they can gain insight into how a company's management and directors view a stock's value and future prospects. The transaction was disclosed in a Form 4 filing with the Securities and Exchange Commission dated March 15, 2024.
United Securities Bancshares, headquartered in Fresno, California, has not yet provided public comment or insight on the deal. It's worth noting that insider buying can be seen as a positive sign by the market, as it can indicate confidence in a company's future performance. However, investors are advised to consider a wide range of factors when evaluating the potential impact of insider trading on their investment decisions.
Investment Pro Insights
United Security Bancshares (NASDAQ:UBFO) has seen significant insider activity lately, with Director Jagroop Gill increasing his stake in the company. This move coincides with several notable InvestingPro tips highlighting the potential value of UBFO stock. First, UBFO currently trades at a low P/E relative to its near-term earnings growth, with an adjusted trailing-12-month P/E of just 6.76 as of Q4 2023. A low earnings multiple may suggest that the stock is undervalued.
From a shareholder perspective, UBFO pays a generous dividend with a 6.4% yield as of the latest data, in addition to a 9.09% dividend increase over the past 12 months as of Q4 2023. This commitment to returning profits to shareholders contributed to the directors' decision to increase their shareholdings.
Looking at data from InvestingPro, United Security Bancshares has a market capitalization of $129.38 Million and has recorded 13.94% revenue growth over the past 12 months as of Q4 2023. Despite gross margin challenges, the company has remained profitable over the past several years. Operating profit margin is 52.35%.
For investors intrigued by these insights, additional InvestingPro Tips are available to help you learn more about UBFO's financial health and stock price potential.By using coupon code pro news 24readers can access these valuable tips and make more informed investment decisions by purchasing annual or biennial Pro and Pro+ subscriptions for an additional 10% off.
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