In a series of transactions, Everett M. Dobrinski, a director at Federal Agricultural Mortgage Corp (NYSE:), also known as Farmer Mac, purchased shares totaling more than $59,000. The acquisitions were made through an automatic broker dividend reinvestment plan and were inadvertently not reported earlier.
The transactions, which occurred over a span of several dates, involved the purchase of Class C Non-Voting Common Stock at prices ranging from $62.07 to $193.428 per share. This range reflects the various market prices at the time of each purchase. The total amount of shares acquired through these transactions has significantly increased Dobrinski’s holdings in the company.
The purchases were part of an automatic dividend reinvestment plan managed by a broker. According to a footnote in the filing, the shares include 373 time-vested restricted stock units that will vest on March 31, 2025, provided Dobrinski remains a director of Farmer Mac at that time.
Investors often monitor the buying and selling activity of company insiders as it can provide insights into their perspective on the company’s future performance. In this case, the consistent purchases by a director over time could be interpreted as a sign of confidence in the long-term prospects of Federal Agricultural Mortgage Corp.
The disclosure of these transactions was signed by Stephen P. Mullery, as attorney-in-fact for Everett M. Dobrinski, on April 15, 2024. As with all insider transactions, these purchases were reported to the Securities and Exchange Commission in a Form 4 filing, which provides transparency and allows investors to track the buying and selling activities of company insiders.
InvestingPro Insights
As investors consider the implications of insider buying at Federal Agricultural Mortgage Corp (NYSE:AGM), also known as Farmer Mac, recent data and analysis from InvestingPro provide additional context. With a series of purchases by director Everett M. Dobrinski, the company’s financial metrics and market performance may offer insights into the potential value these transactions signify.
Currently, Farmer Mac boasts a market capitalization of approximately $1.95 billion and a price-to-earnings (P/E) ratio of 9.07, which suggests that the stock is trading at a low multiple relative to near-term earnings growth. This could indicate that the company is undervalued compared to its earnings potential. The company’s P/E ratio for the last twelve months as of Q4 2023 stands at 11.03, with a price-to-book ratio of 2.06, signaling a solid balance between share price and equity value.
One of the InvestingPro Tips highlights Farmer Mac’s history of raising its dividend for 12 consecutive years, demonstrating a commitment to returning value to shareholders. Additionally, the company has maintained dividend payments for 21 consecutive years, which can be an attractive feature for income-focused investors. With a dividend yield of 2.96% as of early 2024 and a significant dividend growth of 47.37% in the last twelve months as of Q4 2023, Farmer Mac presents a compelling case for those seeking steady income streams.
For readers looking to delve deeper into Farmer Mac’s performance and potential, InvestingPro offers additional tips for a comprehensive analysis. By using the coupon code PRONEWS24, readers can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, accessing numerous tips that could further inform investment decisions. There are 8 more InvestingPro Tips available for Farmer Mac, including insights into the company’s profitability and stock price performance.
With a next earnings date scheduled for May 2, 2024, and an InvestingPro fair value estimation at $216.19, which exceeds the previous close price of $181.91, Farmer Mac’s stock could be poised for future appreciation. Investors and analysts will be watching closely to see if the insider buying activity aligns with the company’s forthcoming financial results and market trajectory.
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