Unlock Premium Data: Up to 50% Off InvestingProCLAIM SALE

Byline Bancorp shows strong growth with insider buying activity

EditorNikhilesh Pawar
Published 11/23/2023, 02:11 PM
© Reuters.
BY
-

Byline Bancorp (NYSE:BY) has caught the attention of investors as a sound investment option, demonstrating robust financial health with significant growth in earnings per share (EPS) and revenue. The company's EPS has seen an impressive annual increase of 30% over the past three years. Additionally, Byline Bancorp has reported a revenue surge of 17%, reaching $340 million.

The bank's earnings before interest and taxes (EBIT) margins have remained stable even as operational revenues faced a decline, indicating effective cost management and operational efficiency. This financial steadiness is complemented by a notable level of confidence from within the company itself, as evidenced by substantial insider purchases totaling $11 million in the past year. Notably, no insider sales were reported during this period.

The Lead Independent Director, Antonio Del Valle Perochena, made a significant investment by acquiring shares worth $1.1 million at a price of $24.99 each. The insiders' collective ownership stake amounts to 34% of the company, which aligns their interests closely with those of the shareholders. This substantial stake is indicative of the insiders' belief in the company's value and their commitment to driving its future growth.

Furthermore, Byline Bancorp's CEO Roberto Herencia receives a compensation package that is below the industry median for CEOs at similarly sized firms. His compensation stands at $2.3 million, suggesting that the company prioritizes shareholder value over executive pay.

Investors looking to gauge Byline Bancorp's future performance can refer to available reports projecting potential profits while staying mindful of two specific warning signs that have been raised concerning the company's outlook. These reports and indicators may provide valuable insights into what shareholders might expect moving forward.

InvestingPro Insights

Byline Bancorp (NYSE:BY) has shown promising financial trends, and a deeper look through InvestingPro insights can provide investors with additional context. The company's market capitalization stands at a solid $892.26 million, and with a P/E ratio of 7.8, Byline Bancorp is trading at a relatively low valuation compared to its near-term earnings growth. This is further accentuated by the company's PEG ratio of 0.46 over the last twelve months as of Q3 2023, suggesting potential for investment value based on earnings growth expectations.

InvestingPro Tips highlight that Byline Bancorp has been experiencing accelerating revenue growth, with a notable 17.4% increase in the last twelve months, and a quarterly surge of 25.21% in Q3 2023. Moreover, the company has raised its dividend for four consecutive years, which, coupled with strong earnings, should allow management to continue dividend payments. This is a testament to the company's profitability and commitment to returning value to shareholders.

For those interested in further insights and tips, InvestingPro offers additional guidance, with a total of 7 InvestingPro Tips available for Byline Bancorp, which can be accessed through a special Black Friday sale for a subscription, currently at a discount of up to 55%. This could be an opportune time for investors to leverage these insights to make informed decisions. The InvestingPro fair value estimate of $22.98 also provides a perspective on the stock's potential value, adding another layer for evaluation.

By incorporating these metrics and tips into their analysis, investors can gain a more nuanced understanding of Byline Bancorp's financial position and future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.