On September 12, 2023, Walter Rusnak, the Senior Vice President and Chief Financial Officer of Pathfinder Bancorp Inc (NASDAQ:PBHC), purchased 733 shares of the company. This move is significant as insider buying often indicates a strong belief in the company's future prospects.
Walter Rusnak has been with Pathfinder Bancorp Inc for several years, serving in various financial roles before his current position as CFO. His extensive experience and deep understanding of the company's financial operations make his insider buying a noteworthy event for investors.
Pathfinder Bancorp Inc is a bank holding company, which through its subsidiary, provides a wide range of financial services to individuals and businesses in its market areas. The company's services include loans, deposits, investment advisory, and cash management. With a market cap of $78.368 million, Pathfinder Bancorp Inc operates in a highly competitive industry, making Rusnak's purchase even more significant.
Over the past year, the insider has purchased a total of 10,733 shares and sold none. This trend of consistent buying indicates a strong belief in the company's future prospects. The insider's recent purchase of 733 shares further strengthens this trend.
The insider transaction history for Pathfinder Bancorp Inc shows a total of 12 insider buys over the past year, with only 1 insider sell. This trend suggests that insiders at the company have a positive outlook on the stock's future performance.
On the day of the insider's recent buy, shares of Pathfinder Bancorp Inc were trading at $10.37. This gives the stock a price-earnings ratio of 6.98, which is lower than both the industry median of 8.29 and the company's historical median price-earnings ratio. This suggests that the stock may be undervalued.
Furthermore, with a price of $10.37 and a GuruFocus Value of $19.01, Pathfinder Bancorp Inc has a price-to-GF-Value ratio of 0.55. This indicates that the stock is significantly undervalued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
In conclusion, the insider's recent purchase of Pathfinder Bancorp Inc shares, along with the company's low price-earnings ratio and price-to-GF-Value ratio, suggest that the stock may be a good investment opportunity. However, as always, potential investors should conduct their own research and consider their financial situation before making investment decisions.
This article first appeared on GuruFocus.