On September 13, 2023, Jeffrey Stopko, President & CEO of AmeriServ Financial Inc (ASRV, Financial), purchased 3,000 shares of the company, signaling a strong vote of confidence in the firm's prospects. This move is noteworthy as insider buying often indicates that those closest to the company believe its stock is undervalued.
Who is Jeffrey Stopko?
Jeffrey Stopko is the President and CEO of AmeriServ Financial Inc. He has been with the company for several years, demonstrating a deep understanding of the company's operations and strategic direction. His recent purchase of 3,000 shares adds to his already substantial stake in the company, further aligning his interests with those of the shareholders.
About AmeriServ Financial Inc
AmeriServ Financial Inc is a bank holding company that provides a range of consumer, mortgage, and commercial financial products and services. The company operates through its community banking, wealth management, and investment/advisory segments. Its primary markets are the counties in Pennsylvania, where it operates several branches.
Insider Buying Analysis
Over the past year, Jeffrey Stopko has purchased a total of 12,500 shares and sold 0 shares. This trend of consistent buying indicates a strong belief in the company's future performance.
The insider transaction history for AmeriServ Financial Inc shows a total of 10 insider buys over the past year, with only 1 insider sell over the same timeframe. This trend suggests that insiders at AmeriServ Financial Inc are bullish about the company's prospects.
Stock Price and Valuation
On the day of the insider's recent buy, shares of AmeriServ Financial Inc were trading at $2.97, giving the company a market cap of $50.414 million. The price-earnings ratio stands at 11.31, higher than the industry median of 8.29 but lower than the company’s historical median price-earnings ratio.
With a price of $2.97 and a GuruFocus Value of $3.98, AmeriServ Financial Inc has a price-to-GF-Value ratio of 0.75. This suggests that the stock is modestly undervalued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
In conclusion, the recent insider buying activity at AmeriServ Financial Inc, coupled with the company's modest undervaluation, suggests that the stock could be an attractive investment opportunity. However, as always, potential investors should conduct their own due diligence before making investment decisions.
