On September 12, 2023, Edward Matthews, a director at Carter Bankshares Inc (CARE, Financial), purchased 1,700 shares of the company. This move is significant as insider buying often signals confidence in the company's future prospects.
Edward Matthews is a seasoned executive with a wealth of experience in the financial sector. His decision to increase his stake in Carter Bankshares Inc is a strong vote of confidence in the company's strategic direction and future growth potential.
Carter Bankshares Inc is a holding company for Carter Bank & Trust, a Virginia state-chartered community bank. The bank offers a wide range of banking and related financial services to individual and corporate customers through its extensive network of branches. It primarily operates in Virginia and North Carolina.
Over the past year, Matthews has purchased a total of 1,700 shares and has not sold any shares. This trend aligns with the overall insider activity at Carter Bankshares Inc. The company has seen 35 insider buys and 7 insider sells over the past year.
The insider's recent purchase coincided with a period when the stock was trading at $13.72 per share, giving the company a market cap of $314.249 million. This price represents a price-earnings ratio of 6.27, which is lower than both the industry median of 8.35 and the company's historical median price-earnings ratio.
According to the GuruFocus Value, which is an intrinsic value estimate based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates, Carter Bankshares Inc is significantly undervalued. The stock's price-to-GF-Value ratio stands at 0.7, with a GF Value of $19.57, indicating that the stock is significantly undervalued.
The insider's decision to buy shares at this point could suggest that they believe the stock is undervalued and has significant upside potential. This could be a positive signal for investors considering buying shares in Carter Bankshares Inc.
However, as always, potential investors should conduct their own due diligence and consider multiple factors before making investment decisions. Insider buying is just one of many indicators that can provide insights into a company's prospects.
