Stilwell Value Entities buys $87,800 worth of Peoples Financial Corp shares From Investing.com

In a recent transaction, entities associated with Joseph Stilwell, a well-known ten percent owner of Peoples Financial Corp (NASDAQ:PFBX), made a significant purchase of the company’s common stock. On June 18, 2024, Stilwell Value Partners VII, LP acquired 5,488 shares at a price of $16.00 per share, for a total investment of $87,808.

This purchase reflects the Stilwell Companies’ continued confidence in the financial institution, which operates primarily in Mississippi. The shares acquired are held indirectly by Joseph Stilwell through his position as managing partner and owner of Stilwell Value LLC, the general partner of Stilwell Value Partners VII, LP. It should be noted that Mr. Stilwell disclaims beneficial ownership of the shares except to the extent of his financial interest.

According to the SEC filing, this transaction increased the total number of shares held by Stilwell Value Partners VII, LP to 127,705. In addition, other entities affiliated with Mr. Stilwell, namely Stilwell Activist Fund, LP and Stilwell Activist Investments, LP, hold 67,505 and 404,436 shares, respectively. These holdings are also managed under the umbrella of Stilwell Value LLC.

The filing was made by the reporting persons jointly as part of a Section 13(d) class, indicating that they own more than 10% of the common stock of Peoples Financial Corp. The group’s substantial ownership interest underscores their significant influence and interest in the performance and strategic direction of the Company.

Investors tend to watch the buying and selling activities of major shareholders as these transactions can provide insight into the company’s prospects and insiders’ confidence in the company’s future. The recent acquisition by Stilwell’s subsidiaries can be interpreted as a positive signal to the market, indicating potential growth or undervaluation of Peoples Financial Corp. stock.

InvestingPro Insights

The recent acquisition by entities affiliated with Joseph Stilwell is in line with broader financial analysis of Peoples Financial Corp (NASDAQ:PFBX), which reflects a company with solid fundamentals. With a market capitalization of $74.59 million and a price-to-earnings (P/E) ratio of 8.33, PFBX has a valuation that could be attractive to value investors. The P/E ratio, which remains constant after adjusting for the trailing twelve months from Q1 2024, indicates that the stock is trading at a multiple that may be below the broader market average, suggesting that the stock may be undervalued.

Peoples Financial Corp’s trailing-twelve-month revenue growth was 8.38% through Q1 2024, demonstrating the company’s ability to grow its revenue year-over-year. While this growth is a positive sign, it is important to note that quarterly revenue growth for Q1 2024 recorded a slight decline of -3.5%. Nevertheless, the substantial dividend growth of 80.0% over the same period and a healthy dividend yield of 2.25% as of June 2024 could make PFBX an attractive stock for income-seeking investors.

One tip to consider from InvestingPro is the company’s price-to-book (P/B) ratio of 1.06, which suggests that the stock is trading at a price relatively close to its book value. This metric, coupled with the company’s solid operating profit margin of 33.79%, can indicate a financially sound company that manages its expenses effectively.

For those interested in further insights and tips, InvestingPro offers additional analysis and metrics. Subscribers can access a wealth of information to make informed investment decisions. To receive an additional 10% off an annual or two-year Pro and Pro+ subscription, use coupon code PRONEWS24There are many more InvestingPro tips for PFBX available on the platform, providing comprehensive insight into the company’s financial health and potential investment opportunities.

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