TEANECK, N.J. - Bogota Financial Corp. (NASDAQ:BSBK), the parent of Bogota Savings Bank, has announced regulatory approval for a new stock repurchase program. The initiative allows for the buyback of up to 237,090 shares, representing around 5% of its current outstanding common stock, excluding shares held by Bogota Financial, MHC. This marks the company's fifth repurchase program.
The repurchase of shares can occur through open market transactions, private deals, or under a trading plan that may be set up in line with Rule 10b5-1 of the Securities and Exchange Commission. The company has not set an expiration date for the repurchase program, and it retains the flexibility to suspend, terminate, or modify the plan at any time for any reason.
Bogota Financial Corp. has not committed to purchasing any specific number of shares, and there is no assurance of the precise number that will be bought back. The company will make decisions on repurchases based on various factors, including stock availability, market conditions, share trading price, alternative capital uses, and the company's financial performance. Any open market acquisitions will comply with Rule 10b-18 of the Securities and Exchange Commission and other applicable legal requirements.
Bogota Financial Corp., headquartered in Maryland, is the mid-tier holding company for Bogota Savings Bank, which has been providing banking services to customers in northern and central New Jersey since 1893. The bank operates from seven offices across the state and maintains a loan production office in Spring Lake, New Jersey.
The information in this article is based on a press release statement from Bogota Financial Corp.
InvestingPro Insights
Bogota Financial Corp. (NASDAQ:BSBK) has recently caught the attention of investors with its new stock repurchase program. As market participants consider the implications of this buyback initiative, real-time data from InvestingPro offers a deeper understanding of the company's financial health and market position. As of the last twelve months ending in Q4 2023, Bogota Financial Corp. reported revenue of 16.24M USD, which marked a significant decrease of 31.71% compared to the previous year. This downturn is further reflected in the quarterly revenue drop of 47.61% in Q4 2023. Despite these challenges, the company's operating income margin stood at 5.53%, indicating some level of operational efficiency.
InvestingPro Tips highlight that Bogota Financial Corp. is expected to see net income growth this year, which could be a positive signal for investors looking at the company's future profitability. Additionally, analysts predict that the company will be profitable this year, aligning with the company's own profitability over the last twelve months. However, with a high P/E ratio of 134.8, the stock is trading at a high earnings multiple, which may suggest that it is priced optimistically relative to earnings. Furthermore, the company's stock price has experienced a significant drop over the past three months, with a 17.8% total price return, and is currently trading near its 52-week low. This could present a potential buying opportunity for investors who believe in the company's long-term value, especially considering that BSBK does not pay a dividend, which may influence investment strategies focused on income generation.
For those interested in diving deeper into Bogota Financial Corp.'s financials and market performance, InvestingPro offers additional tips and insights. Currently, there are 7 more InvestingPro Tips available for BSBK, which can provide a more comprehensive analysis. Investors can access these tips and make more informed decisions by using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
With the next earnings date on April 29, 2024, investors will be keenly watching for any updates that might influence the stock's valuation and performance. The InvestingPro Fair Value is set at 5.59 USD, which suggests that the stock might be overvalued at its previous close price of 6.65 USD.
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