Hanover Bancorp Director Okun Buys $1.7k in Company Shares Via Investing.com
In a recent transaction, Philip A. Okun, director of Hanover Bancorp, Inc. (NASDAQ:HNVR), bought shares of the company's common stock, indicating confidence in the bank's strength. On August 20, 2024, Okun acquired 100 shares at a price of $17.14 each, equal to a total investment of $1,714.
This transaction increases Okun's stake in the company to a total of 39,746 shares, indicating a direct ownership position. Such activities are closely watched by investors as they can reflect an insider's belief in the company's future performance. The purchase price provides a market reference, suggesting what insiders are willing to pay for their company's shares.
Hanover Bancorp, based in Mineola, New York, operates as a commercial bank for the state and serves its customers with a variety of financial services. Insider transactions like this are often seen as a sign of leadership's commitment to the company's success and thus are significant events for current and potential shareholders.
In other recent news, Hanover Bancorp reported second quarter earnings per share of $0.11, missing the Piper Sandler estimate of $0.34 and the consensus estimate of $0.40. The earnings shortfall was primarily due to a credit loss provision of approximately $4 million, far more than the $800,000 Piper Sandler had expected. Despite this, Piper Sandler revised his outlook on Hanover Bancorp, raising his price target to $20 from $18 while maintaining an overweight rating.
In other developments, Hanover Bancorp has entered into a new employment agreement with Executive Vice President and Chief Financial Officer, Lance P. Burke. The agreement, effective July 18, 2024, sets Burke's compensation, benefits, and terms of employment at an annual salary of $350,000, subject to review by the company's Board of Directors.
Meanwhile, Hanover Bancorp's second quarter financial results showed net income of $0.8 million, down from $3.1 million last year. The bank's interest income for the quarter was $13.2 million, and it reported strong cash flow, with undrawn cash reserves reaching $648.2 million. Finally, Hanover Bancorp announced plans to open a full-service branch in Port Jefferson, New York, which is expected to open in the fourth quarter of 2024.
InvestingPro Insights
Recent insider trading activity at Hanover Bancorp, Inc. (NASDAQ:HNVR) has caught the market's attention, with director Philip A. Okun buying shares, reflecting his optimism for the bank's future. Because of this event, it is worth considering some important financial metrics and expert analysis provided by InvestingPro to get a clear picture of the company's position.
According to InvestingPro data, Hanover Bancorp has a market capitalization of $123.63 million, with a price-to-earnings (P/E) ratio of 8.88, indicating that the stock is undervalued relative to earnings. The company also showed a strong operating income margin of 34.48% in the last twelve months from Q2 2024, suggesting effective management and profitability in its operations.
However, not all indicators are positive. The bank experienced a slight decline in revenue of 0.05% over the past twelve months from Q2 2024. This may be a point of concern for investors looking for top line growth. In addition, InvestingPro Tips highlights that analysts have recently revised their expected earnings downwards in the future and expect a decline in revenue this year. Despite these concerns, analysts predict that the company will remain profitable this year, and has been profitable for the past twelve months.
Investors considering Hanover Bancorp should also note that the stock price often moves in the opposite direction of the market, which may indicate that it is behaving differently from broader market trends. This feature can be attractive to investors looking for a potential hedge during periods of market volatility.
For those interested in in-depth analysis, InvestingPro offers additional tips on Hanover Bancorp, Inc., which can be accessed by visiting With current information, potential investors have a snapshot of the company's financial health and internal confidence to help guide their investment decisions.
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