In the latest move, Jon Stenberg, President and CEO of Citizens, Inc. (NYSE:CIA), increased his stake in the company by buying more shares. On September 16, 2024, Stenberg acquired 11,934 shares of Citizens, Inc. Class A Common Stock at a price of $2.99 per share, a total of approximately $35,682.
The transaction boosted Stenberg's direct holdings in the company to 89,464 shares. The purchase marks the CEO's largest investment in the life insurance company, which is headquartered in Austin, Texas.
Citizens, Inc. is known for its expertise in life insurance and operates under SIC code 6311. The company, incorporated in Colorado, has a fiscal year ending December 31.
Investors often look to insider purchases as a sign of confidence in a company's prospects. Stenberg's acquisition of additional shares may be interpreted as a positive sign by the market. The CEO's decision to invest further in Citizens, Inc. we are aligned with the interests of shareholders and can be an indicator of the board's belief in the company's future performance.
The stock purchase was filed with the SEC on September 18, 2024, and is publicly accessible to investors who want to stay informed about the company's inner workings.
In other recent news, Citizens Inc. it was attracting a lot of attention. Singular Research upgraded the company's stock rating from Hold to Buy, and maintained a firm price target of $3.70. This follows a mixed financial performance, with a 6% increase in revenue in Q2 2024, mainly due to an 85% increase in first-year premium, offset by a 33% decline in earnings per share (EPS) due to increased costs.
The insurance company recently appointed Jon Stenberg as its new CEO, succeeding Gerald W. Shields who will continue as Vice Chairman of the Board of Directors. This leadership change follows year-over-year growth in insurance written by 61 percent, reaching $274.5 million in Q1 2024, and a record $5 billion in insurance written as of March 31, 2024.
At the 2024 Annual Meeting of Shareholders, the executive compensation was approved and directors were elected. The firm also confirmed the appointment of Grant Thornton LLP as an independent registered public accounting firm for 2024. These events reflect the latest strategies and operations, as well as the confidence of shareholders in the company's governance and high compensation processes.
InvestingPro Insights
Due to the CEO's recent stock purchases, a closer look at Citizens, Inc. with InvestingPro data and insights may provide investors with more context. With a market capitalization of $161.08 million, the company is undersized but understated. An important point to note is the company's P/E ratio, which stands at 7.24, which indicates that the stock is trading at very low earnings. This may suggest that the shares may be undervalued relative to the company's earnings, making it an attractive buy for value investors.
InvestingPro data also shows a significant price increase over the past six months, with a total return of 44.34%. This significant increase may indicate a positive market reaction to the company's performance or prospects. Additionally, the company's revenue grew by 3.43% in the last twelve months from Q2 2024, which, although low, shows a growth trajectory.
Two InvestingPro tips that may be most important to investors are that analysts predict the company will be profitable this year, and the company has been profitable for the past twelve months. These details, along with the CEO's recent investments, can indicate the underlying strength in the company's business model and vision for the future. It is noted that Citizens, Inc. it does not pay a dividend, which may be a consideration for income-oriented investors.
For those looking for in-depth analysis, additional InvestingPro Tips are available on the platform. Currently, there are 7 InvestingPro tips listed on Citizens, Inc., which can be accessed for detailed investment considerations.
Overall, the combination of CEO confidence, more favorable earnings, and positive price momentum could provide an attractive narrative for investors considering Citizens, Inc. as a potential addition to their portfolio.
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