On May 22, 2023, Chairman, President & CEO F Denardo purchased 546 shares of National Bankshares Inc (NKSH, Financial), a regional bank holding company headquartered in Blacksburg, Virginia. This insider buying activity could be a signal of confidence in the company's future prospects and may warrant further investigation by investors.
Who is F Denardo?
F Denardo is the Chairman, President, and CEO of National Bankshares Inc. With extensive experience in the banking industry, Denardo has been instrumental in guiding the company's growth and strategic direction. Under his leadership, National Bankshares Inc has continued to expand its presence in the region and deliver value to its shareholders.
National Bankshares Inc's Business Description
National Bankshares Inc is a financial holding company that operates through its wholly-owned subsidiary, the National Bank of Blacksburg. The bank provides a range of retail and commercial banking services, including deposit accounts, loans, wealth management, and other financial products to individuals, businesses, and local governments. With a strong focus on customer service and community involvement, National Bankshares Inc has built a solid reputation in the region and continues to grow its market share.
Analysis of Insider Buy/Sell and Relationship with Stock Price
Over the past year, F Denardo has purchased a total of 546 shares and has not sold any shares. This indicates a positive sentiment towards the company's prospects and could be a sign of potential value in the stock. Furthermore, the insider transaction history for National Bankshares Inc shows a total of 19 insider buys over the past year, with no insider sells during the same period. This trend suggests that insiders are confident in the company's future performance and see potential upside in the stock price.
On the day of F Denardo's recent purchase, shares of National Bankshares Inc were trading at $27.39, giving the stock a market cap of $158.433 million. The price-earnings ratio of 6.26 is lower than the industry median of 7.97 and lower than the company's historical median price-earnings ratio, indicating that the stock may be undervalued compared to its peers and its own historical valuation.
With a price of $27.39 and a GuruFocus Value of $45.45, National Bankshares Inc has a price-to-GF-Value ratio of 0.6, suggesting that the stock is significantly undervalued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, which takes into account historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow), a GuruFocus adjustment factor based on the company's past returns and growth, and future estimates of business performance from Morningstar analysts.
Conclusion
The recent insider buying activity by F Denardo, along with the overall trend of insider purchases over the past year, could be a positive signal for investors considering National Bankshares Inc. The stock's current valuation, as indicated by its price-earnings ratio and price-to-GF-Value ratio, suggests that it may be undervalued compared to its peers and its own historical valuation. Investors interested in the financial sector and regional banks may want to take a closer look at National Bankshares Inc (NKSH, Financial) as a potential investment opportunity.
