On January 31, 2024, Randy Bimes, a director at QNB Corp, executed a significant stock purchase, acquiring 48,978 shares of the company. This transaction was filed with the SEC and can be viewed in detail through the SEC Filing.
QNB Corp, traded under the ticker QNBC, is a financial institution that operates through its subsidiary, QNB Bank. The company provides retail and commercial banking services, including checking, savings, and investment products, as well as loans and other financial services to individuals and businesses in its market areas.
Insider transactions are closely monitored as they can provide insights into a company's financial health and management's confidence in the business. An insider buy, such as the one made by the insider, may suggest a belief in the company's strong future prospects or that the stock is undervalued.
Over the past year, the insider has purchased a total of 93,747 shares and has not sold any shares, indicating a positive sentiment towards the company's stock. The insider transaction history for QNB Corp shows a pattern of more insider buying than selling. In the past year, there have been 28 insider buys and no insider sells.
On the date of the insider's recent purchase, shares of QNB Corp were trading at $25.66, resulting in a market cap of $94.582 million. The price-earnings ratio of the stock is 6.75, which is below both the industry median of 9.46 and the company's historical median price-earnings ratio, suggesting a lower valuation compared to its peers and its own trading history.
The stock's price-to-GF-Value ratio stands at 0.79, with a GF Value of $32.65, indicating that QNB Corp is considered Modestly Undervalued according to GuruFocus's valuation model. The GF Value is a proprietary intrinsic value estimate that takes into account historical trading multiples, a GuruFocus adjustment factor based on past returns and growth, and future business performance estimates from analysts.
The GF Value chart provides a visual representation of the stock's valuation, comparing the current price to the estimated intrinsic value.
Investors often consider insider buying patterns when evaluating a stock, as they may signal the insiders' confidence in the company's future performance. The recent purchase by the insider at QNB Corp aligns with the overall trend of insider buying over the past year, potentially indicating a positive outlook for the company's stock.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
