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Cardinal Financial Reports Insider Cluster Buy and Quarterly Dividend Increase

April 25, 2013 | About:
Monica Wolfe

Monica Wolfe

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Cardinal Financial Corporation (CFNL) reported three insider buys as the company’s price took a sharp drop.

On April 23, COO Alice Frazier bought 2,000 shares at $14.65 each. This transaction cost her $29,300. She now owns at least 3,500 shares of company stock.

On April 24, both Director William Buck and Chairman and CEO Bernard Clineburg added to their stake in the company. Buck added 2,500 shares at $15.14 per share for a total transaction amount of $37,850. Clineburg bought 1,025 shares for $15.04 per share. This buy cost him a much smaller $15,416.



These transactions mark the first insider cluster buy for Cardinal Financial. These three buys came as the price of the company dropped from over $18 per share to under $15 per share.

Cardinal Financial is a financial services holding company headquartered in Virginia. Cardinal Financial operates via their subsidiaries Cardinal Bank, George Mason Mortgage, Cardinal Trust and Investments, Cardinal Wealth Services, and Wilson/Bennett Capital Management.

On April 18 the company announced that it had increased its quarterly cash dividend from $0.01 to $0.06 per share. Also on April 18, Cardinal Financial reported its first quarter results. The company announced quarterly earnings of $7.2 million, or $0.23 per diluted share, compared to $7.7 million, or $0.26 per diluted share, for the corresponding quarter in 2012.

CFNL data by GuruFocus.com

Chairman and CEO Bernard Clineburg said, “The announcement of an increase to our dividend is a testament to the board of director’s and management’s belief in the fundamentals of our earnings and growth prospects for the Company. We are proud to announce our inclusion in the Keefe, Bruyette & Woods ‘Bank Honor Roll’, a distinction for banks achieving positive earnings per share growth trends over the last decade, with no annual losses, regardless of the economic environment.”

The GuruFocus analysis reports that the company has added $2.457 million of debt in the past three years. It also reports that dividend yield is close to a 10-year high and that the P/E Ratio is close to a 10-year low.

The financials of Cardinal, the company has seen a 35.8% revenue growth within the past year, and in the past ten years it has seen a 9.8% increase. The company’s net income and earnings have increased since 2008. Cardinal Financial has had a negative cash flow for the past two years.

Market Cap: 454.11 M P/E: 9.5 Shiller P/E: 23.9
P/B: 1.5 P/S: 2.98 EV/EBITDA: 12.16
52 Week Low: 10.98 52 Week High: 18.40 Average Volume: 258,318


Steven Cohen owns 14,819 shares and Jim Simons holds 228,703 shares of Cardinal Financial.

With its shares up 0.33%, Cardinal Financial currently trades at $15.40.
  • CEO Buys, CFO Buys: Stocks that are bought by their CEO/CFOs.
  • Insider Cluster Buys: Stocks that multiple company officers and directors have bought.
  • Double Buys:: Companies that both Gurus and Insiders are buying
  • Triple Buys: Companies that both Gurus and Insiders are buying, and Company is buying back.

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Rating: 2.7/5 (3 votes)

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