DOVER, N.H. - First Seacoast Bancorp, Inc. (NASDAQ:FSEA), the parent company of First Seacoast Bank, has announced the initiation of a stock repurchase program. The program authorizes the buyback of up to 507,707 shares, which is approximately 10% of the company's current outstanding common stock.
The repurchase plan is set to commence following the company's filing of its Quarterly Report on Form 10-Q for the period ending March 31, 2024, with the Securities and Exchange Commission. The buybacks will be conducted on the open market and may include the use of a trading plan under SEC Rule 10b5-1, depending on market conditions and other influencing factors.
While the company has expressed intentions to repurchase shares, it has also noted that there is no certainty regarding the exact number of shares that will be bought back. The repurchase program is scheduled to last 12 months from the effective date. Still, First Seacoast Bancorp reserves the right to suspend or discontinue the program at any time based on its discretion.
First Seacoast Bank provides financial services to the Seacoast region of New Hampshire, operating out of four full-service offices in Strafford County and one in Rockingham County.
The press release includes forward-looking statements concerning the stock repurchase program. These statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the actual outcomes to differ materially from those anticipated.
Factors that might affect the execution of the repurchase program include market conditions and other circumstances beyond the company's control.
This news article is based on a press release statement from First Seacoast Bancorp, Inc.
InvestingPro Insights
First Seacoast Bancorp, Inc. (NASDAQ:FSEA) has recently made a strategic move to initiate a stock repurchase program, reflecting a potentially bullish stance by the company's management on its stock value. Yet, a glance at the company's financial health through the lens of InvestingPro reveals a few areas of concern.
According to InvestingPro Tips, First Seacoast Bancorp suffers from weak gross profit margins and has not been profitable over the last twelve months. Additionally, the company does not pay a dividend to shareholders, which could influence investor sentiment regarding the stock's attractiveness.
Diving deeper into the numbers, First Seacoast Bancorp's market capitalization stands at a modest $41.06M, and the company's P/E ratio, as of the last twelve months ending Q4 2023, is negative at -3.87, indicating that the company has been operating at a loss.
Furthermore, the revenue growth has been declining, with a significant -40.86% change over the last twelve months as of Q4 2023. This is compounded by an even steeper quarterly revenue growth rate of -133.52% for the same period. The company's operating income margin has also taken a hit, sitting at -69.3%, reflecting challenges in converting revenues to profits.
Despite these challenges, the stock has experienced a 5.81% price total return over the past three months, signaling some positive market sentiment. The current price is close to its 52-week high, at 91.79% of that value. Still, InvestingPro's fair value estimate for FSEA stands at $6.75, which is below the previous close price of $8.65. This discrepancy suggests that the stock may be overvalued at its current price.
For investors looking for more detailed analysis and additional insights, InvestingPro offers a comprehensive suite of metrics and tips. There are even more InvestingPro Tips available for First Seacoast Bancorp, which can be accessed through the InvestingPro platform. Interested readers can benefit from an additional 10% off a yearly or biyearly Pro and Pro+ subscription using the coupon code PRONEWS24.
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