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Director Invests in Chemung Financial

- By Kyle Ferguson

Thomas Granter, a director of Chemung Financial Corp. (CHMG), purchased 2,250 shares of the company between Feb. 17 and March 6, according to SEC filings.

Granter now owns 18,210 shares of the company.


Headquartered in Elmira, New York, Chemung Financial is a bank holding company. The company, through its subsidiaries Chemung Canal Trust Co. (the bank) and CFS Group Inc., provides a range of banking, financing, fiduciary and other financial services to its clients.

It manages its operations through two segments: Core Banking and Wealth Management Group.

The Core Banking segment provides revenues by attracting deposits from the general public and using such funds to originate consumer, commercial, commercial real estate and residential mortgage loans, primarily in the corporation's local markets and to invest in securities. The Wealth Management Group Services segment provides revenues by providing trust and investment advisory services to clients.

Chemung Financial has a market cap of $188.24 million, a price-earnings (P/E) ratio of 17.37, an enterprise value of $127.89 million, a price-sales (P/S) ratio of 1.21 and a dividend yield of 2.77%.

Chemung Financial announced its first-quarter earnings on April 20.

Chemung's first-quarter highlights

  • Net income of $3.0 million, or 62 cents per share.
  • Loans, net of deferred fees, increased $34.0 million, or 2.8%.
  • Commercial loans increased $35.5 million, or 4.8%.
  • Deposits increased $87.9 million, or 6.0%.
  • Net interest income increased $500,000, or 3.6%.
  • A more detailed summary of financial performance follows.

According to GuruFocus, the company has a 6 of 10 financial strength rating with a cash-debt ratio of 13.87 and an equity-asset ratio of 0.09. Its Beneish M-Score of -2.26 indicates it does not manipulate its financial statements.

The company has a 5 of 10 profitability and growth rating. It has an operating margin of 20.03%, a net margin of 14.07%, a return on assets (ROA) of 0.61% and a three-year revenue growth rate of 3.60%

It is noteworthy that guru Jim Simons (Trades, Portfolio) purchased a stake in Chemung Financial during the fourth quarter. Since then the company's market price has gained an estimated 19%.

Below is a Peter Lynch chart that shows Chemung Financial is trading below its intrinsic value.

Disclosure: Author does not own any shares of this company.

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This article first appeared on GuruFocus.