In a recent transaction, John Abbott Root, a director at First of Long Island Corp (NASDAQ:FLIC), sold 166,633 shares of the company’s common stock at an average price of $12.7042, resulting in a total sale amount exceeding $2.1 million. This sale has left Root with zero shares in the company, as indicated by the latest SEC filing.
The transaction took place on September 5th, 2024, and was reported to the Securities and Exchange Commission the following day. The shares were sold at a singular price point, with no range indicated, simplifying the calculation of the total value of the sale.
It’s noteworthy that the shares were indirectly held by Root through Driver Opportunity Partners I LP, as mentioned in a footnote of the SEC filing. Root, through his control of Driver Management Company LLC, the general partner of Driver LP, was considered the beneficial owner of the shares. However, he has disclaimed beneficial ownership of these shares, except to the extent of his pecuniary interest.
First of Long Island Corp, a national commercial bank headquartered in Melville, New York, has not made any public statement regarding this transaction. The sale comes as a significant move by one of the company’s directors, but the motives behind the sale or its implications for the company remain undisclosed.
Investors often monitor insider transactions as they can provide insights into a director’s perspective on the company’s current valuation and future prospects. However, such sales can be motivated by a variety of personal or financial reasons that are not necessarily connected with the company’s performance.
For those interested in the company’s stock performance and insider transactions, additional details can be found in the SEC Form 4 filings.
“In other recent news, The First of Long Island Corporation disclosed an unauthorized wire transfer incident resulting in a potential fraud claim of approximately $11.1 million. Despite this, the company’s operations continue uninterrupted and the bank has expressed confidence that the situation is isolated. In the same vein, The First of Long Island Corporation reported a strong Q2 performance for 2024, with growth seen in return on assets, equity, deposits, loans, and non-interest income. The company also emphasized its strong credit quality and capital position, with a leverage ratio of 9.9%.
Moreover, the bank has opened a new branch and is considering further geographic expansion. However, an increase in non-performing loans was noted, primarily attributed to one specific loan. Despite this, the bank continues to see stronger loan originations, particularly in commercial lending. The company has $13 million remaining under the buyback program, which they may consider using in the future. These recent developments indicate the bank’s commitment to expansion and shareholder value.”
InvestingPro Insights
The recent insider transaction involving John Abbott Root at First of Long Island Corp (NASDAQ:FLIC) prompts a closer look at the company’s financial health and market performance. According to InvestingPro data, FLIC currently holds a market capitalization of $285.92 million, with a Price/Earnings (P/E) ratio of 12.97. This valuation presents the company as potentially undervalued with its P/E ratio sitting below the often-cited market average of 15. Furthermore, the company has demonstrated a strong return over the last three months, with a 32.96% price total return, which may have influenced Root’s decision to sell his shares at this time.
In terms of dividends, First of Long Island Corp stands out with a dividend yield of 6.59% as of the last recorded date, which is notably high in the current market environment. This aligns with one of the InvestingPro Tips that highlights FLIC’s significant dividend to shareholders, a trait that has been consistent for 41 consecutive years. For dividend-seeking investors, this could be a compelling reason to consider FLIC in their portfolios.
On the flip side, another InvestingPro Tip points out that the company suffers from weak gross profit margins, which could be a concern for investors focused on profitability and operational efficiency. Despite this, analysts remain optimistic, predicting that the company will maintain profitability this year.
For those looking to delve deeper into the company’s performance and insider perspectives, there are additional InvestingPro Tips available. To explore these insights and more, investors can visit https://www.investing.com/pro/FLIC for a comprehensive analysis.
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