In a recent transaction, Clinton P. Winter, a director at United Bankshares Inc (NASDAQ:UBSI), added to his position in the company by purchasing shares valued at over $16,000. The acquisition, dated April 5, 2024, involved 493 shares of phantom stock, a type of derivative security, at a price of $34.21 per share.
Winter's latest move brings his direct holdings in United Bankshares to 46,216 shares of phantom stock. Additionally, he holds 455,166 shares of common stock directly and 37,800 shares indirectly through Bray & Oakley Insurance, as well as 1,000 shares indirectly by his spouse.
The purchase of phantom stock, which is payable in cash following Winter's termination of employment with United Bankshares, indicates a continued commitment to the company's future. Investors often view insider transactions as a sign of confidence in the company’s prospects, making this acquisition noteworthy.
The total value of the shares bought by Winter is a clear demonstration of his vested interest in the success and growth of United Bankshares. As insiders have unique insights into their companies, such transactions are closely monitored by investors seeking clues about a company's potential performance.
United Bankshares Inc, based in Charleston, West Virginia, operates as a state commercial bank and is known for its strong regional presence. With the latest insider transaction, stakeholders may find reassurance in the alignment of interests between the company's leadership and its shareholders.
InvestingPro Insights
Following the recent insider purchase by director Clinton P. Winter at United Bankshares Inc (NASDAQ:UBSI), the company's financial health and performance metrics provide additional context for investors. United Bankshares has demonstrated a commitment to shareholder returns, as evidenced by its impressive track record of raising its dividend for 35 consecutive years and maintaining dividend payments for 41 consecutive years. This consistency is a positive signal for investors looking for stable dividend-paying stocks.
From a valuation standpoint, United Bankshares holds a market capitalization of approximately $4.59 billion, with a price-to-earnings (P/E) ratio of 12.51, closely aligned with the adjusted P/E for the last twelve months as of Q4 2023, which stands at 12.56. These metrics suggest a company that is reasonably valued in the current market. The price-to-book ratio as of Q4 2023 is 0.96, indicating that the stock is trading just below its book value, which can be appealing to value-oriented investors.
InvestingPro Tips highlight that six analysts have revised their earnings upwards for the upcoming period, and the company is expected to be profitable this year, having been profitable over the last twelve months. This aligns with Winter's recent purchase, potentially signaling a positive outlook on the company's financial performance. On the flip side, United Bankshares suffers from weak gross profit margins, which is an area investors may want to monitor.
For those interested in a deeper analysis, there are additional InvestingPro Tips available for United Bankshares. By using the coupon code PRONEWS24, investors can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking valuable insights that could inform investment decisions. To explore further, visit https://www.investing.com/pro/UBSI and discover why United Bankshares has experienced a large price uptick over the last six months, among other metrics.
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