I performed stock analysis for earnings growth and Lakeland Bancorp (NASDAQ: LBAI) did it with ease
Some have more money than common sense, they say, so even businesses with no income, no profit, and a record of failure can easily find investors. Unfortunately, high-risk investments are often unlikely to pay off, and many investors pay a price to learn their lesson.
Contrary to all this, I prefer to spend time on companies like Lakeland Bancorp (NASDAQ: LBAI), which not only has income, but also profits. While profit isn’t necessarily social good, it’s easy to admire a business that can consistently produce it. While a well-funded business can suffer losses for years, unless its owners have an endless appetite to subsidize the customer, it will eventually have to generate a profit, or else take its last breath.
Check out our latest review for Lakeland Bancorp
How fast is Lakeland Bancorp increasing its earnings per share?
As one of my mentors once told me, the stock price tracks earnings per share (EPS). So it’s no surprise that I like to invest in companies with growing EPS. Over the past three years, Lakeland Bancorp has increased its EPS by 11% per year. It’s a great rate, if the company can keep it up.
I like to see revenue growth as an indication that growth is sustainable, and I look for a high profit margin before interest and taxes (EBIT) to indicate a competitive gap (although some low-margin companies also have ditches). Not all of Lakeland Bancorp’s income this year is income operationsSo keep in mind that the revenue and margin numbers I used might not be the best representation of the underlying business. Lakeland Bancorp has maintained stable EBIT margins over the past year, while increasing revenues by 20% to US $ 248 million. It’s really positive.
The graph below shows how the company’s bottom line has progressed over time. To see the actual numbers, click on the graph.
You don’t drive with your eyes on the rearview mirror, so this may be of more interest to you free report showing analyst forecasts for Lakeland Bancorp’s future profits.
Are Lakeland Bancorp Insiders Aligned With All Shareholders?
Like standing on the prowl, surveying the horizon at sunrise, insider buying, for some investors, sparks joy. This is because insider buying often indicates that those closest to the company are confident that the stock price will perform well. Small purchases aren’t always indicative of conviction, however, and insiders don’t always make the right choices.
Despite sales of $ 29,000, Lakeland Bancorp insiders bought the shares massively, spending $ 303,000 on purchases over the past twelve months. One could argue that the level of purchase implies genuine confidence in the company. It should also be noted that it was Executive Vice President and Chief Information Officer Sing Loy Ho who made the largest purchase, worth US $ 50,000, paying US $ 16.53. per share.
The good news alongside insider buying for Lakeland Bancorp bulls is that insiders (collectively) have a significant investment in the stock. Indeed, they hold 36 million US dollars of its shares. That’s a lot of money, and that’s no small incentive to work hard. Even though that’s only about 3.9% of the business, that’s enough money to indicate the alignment between the company’s executives and common shareholders.
Does Lakeland Bancorp deserve a spot on your watchlist?
One positive point for Lakeland Bancorp is that it increases his BPA. It’s nice to see. Better yet, insiders are large shareholders and have bought more shares. This makes the company a prime candidate for my watchlist – and arguably a research priority. Now you can try to make up your mind on Lakeland Bancorp just focusing on these factors, Where you could too examine how its price-to-earnings ratio compares to other companies in its industry.
There are many other companies that have insiders who buy stocks. So if you love the sound of Lakeland Bancorp, you are probably going to love this free list of growing companies that insiders buy.
Please note that the insider trading discussed in this article refers to reportable trades in the relevant jurisdiction.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St does not have any position in the mentioned stocks.
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