On May 23, 2023, G Beale, CEO of a Bank Subsidiary, bought 3,000 shares of Blue Ridge Bankshares Inc (BRBS, Financial), a regional bank holding company. This recent insider purchase is worth examining to understand its potential implications for the stock price and the company's valuation.
Who is G Beale?
G Beale is the CEO of a Bank Subsidiary of Blue Ridge Bankshares Inc. Over the past year, G Beale has purchased a total of 7,000 shares and has not sold any shares. This demonstrates a strong conviction in the company's prospects and a commitment to its long-term growth.
Blue Ridge Bankshares Inc: Business Description
Blue Ridge Bankshares Inc is a regional bank holding company that operates through its subsidiary, Blue Ridge Bank. The company provides a wide range of banking services, including personal and business banking, mortgage lending, and wealth management services. With a focus on serving the communities in which it operates, Blue Ridge Bankshares Inc aims to deliver exceptional customer service and innovative financial solutions.
Insider Buying Analysis
The insider transaction history for Blue Ridge Bankshares Inc reveals a total of 29 insider buys over the past year, with no insider sells during the same period. This trend suggests that insiders have a positive outlook on the company's future performance and believe that the stock is undervalued.
G Beale's recent purchase of 3,000 shares at $8.98 per share indicates a strong belief in the company's potential for growth and value creation. This insider buying activity could signal an attractive entry point for investors looking to capitalize on the stock's potential upside.
Stock Price and Valuation
On the day of G Beale's recent purchase, shares of Blue Ridge Bankshares Inc were trading at $8.98 apiece, giving the stock a market cap of $171.051 million. The price-earnings ratio is 14.33, which is higher than the industry median of 7.97 and higher than the company's historical median price-earnings ratio. This suggests that the stock may be overvalued compared to its peers and its historical trading levels.
However, with a price of $8.98 and a GuruFocus Value of $11.26, Blue Ridge Bankshares Inc has a price-to-GF-Value ratio of 0.8. This indicates that the stock is modestly undervalued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated using the following three factors:
- Historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at.
- A GuruFocus adjustment factor based on the company's past returns and growth.
- Future estimates of business performance from Morningstar analysts.
In conclusion, the recent insider buying activity by G Beale, combined with the stock's modest undervaluation based on its GF Value, suggests that Blue Ridge Bankshares Inc may present an attractive investment opportunity. Investors should consider the company's strong insider buying trend, its commitment to serving its communities, and its potential for growth when evaluating the stock as a potential addition to their portfolios.
