Fidelity Southern insider purchase: Earlier this week, Rankin Smith Jr., a Director at Fidelity Southern Corporation (NASDAQ:LION), filed a Form 4 at the U.S. Securities and Exchange Commission declaring a stock purchase made last Friday, Oct. 18th. The insider acquired 691.7488 company shares at $14.4525 each. His holdings now amount to 225,523 shares owned directly and 326 extra ones held indirectly, through his spouse. These are valued above $3 million. Additionally, Smith owns the right to buy (stock options) 10,000 shares at $6.15 each.
The acquisition follows the announcement of the company’s results of operations and financial condition for the quarter ended September 30th and a press release announcing that its board of directors approved the distribution of a stock dividend on November 14th. Shareholders will receive $.03 per share held on the record date of November 1st, 2013.
In the press release, the company highlighted the following key results:
1) Earned $7.9 million in third quarter
2) Completed paydown of 11% Trust Preferred Securities
3) Paid off $48 million of TARP Preferred Stock
4) Return on Average Assets of 1.20%
5) Net Interest Margin increased 17 basis points
6) Re-instated Cash Dividend
7) Organic Loan Growth of 10%, annualized
8) Classified Assets decreased 9%
9) Increased Tangible Book Value by $1.63 or 18%, year over year.”
Trading near $15 a share at about 9.9 times its earnings, the company looks fairly valued. Fidelity’s return on equity of 14.7% (versus the 10% industry mean) is also quite encouraging.
Back to Smith, I should highlight that this is not the first purchase that he has made this year. The Board Director had previously acquired stock in August and September, so this last one doesn’t seem random, but rather confirms a trend.
Disclosure: Javier Hasse holds no position in any stocks mentioned