In a recent transaction, Jagroop Gill, a director at United Security 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, totaling $135.
This purchase reflects the director's growing investment in the bank, which is classified under the National Commercial Banks industry. Following the acquisition, Gill's direct holdings in the company now amount to 1,050,275 shares, held in a trust.
Investors often monitor insider transactions as they can provide insights into how the company's executives and directors view the 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 Security Bancshares, headquartered in Fresno, California, has not yet provided any public comments or insights regarding this transaction. It's worth noting that insider buying can be seen as a positive sign by the market, as it may indicate confidence in the company's future performance. However, investors are advised to consider a broad range of factors when assessing the potential impact of insider transactions on their investment decisions.
InvestingPro Insights
United Security Bancshares (NASDAQ:UBFO) has recently seen significant insider activity, with director Jagroop Gill increasing his stake in the company. This move aligns with a couple of notable InvestingPro Tips that highlight the potential value in UBFO's stock. Firstly, UBFO is currently trading at a low P/E ratio relative to its near-term earnings growth, with an adjusted P/E ratio of just 6.76 for the last twelve months as of Q4 2023. Additionally, the company is trading at a low earnings multiple, which could suggest that the stock is undervalued.
From a shareholder's perspective, UBFO pays a significant dividend, with a yield of 6.4% as of the latest data, coupled with a dividend growth of 9.09% over the last twelve months as of Q4 2023. This commitment to returning income to shareholders may be a contributing factor to the director's decision to increase his holdings.
Looking at the InvestingPro Data, United Security Bancshares has a market cap of $129.38M and has experienced a revenue growth of 13.94% over the last twelve months as of Q4 2023. Despite challenges in gross profit margins, the company has remained profitable over the last twelve months, with an operating income margin of 52.35%.
For investors intrigued by these insights, there are additional InvestingPro Tips available, which can provide further depth into UBFO's financial health and stock potential. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription to access these valuable tips and make more informed investment decisions.
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