Even seasoned traders have been surprised by how baffling the stock market can be at times. Markets sometimes suddenly turn the opposite direction even when results are as projected. Doubt and speculation are often resulted in such events. The historical price performance of a stock may be beneficial at such a time. Knowing the trends of the stock, both short and long-term, also would be valuable. Severn Bancorp, Inc. (NASDAQ: SVBI) stock price is up 21.80% over the past quarter, while it has increased 0.60% over the past week. Further back, the stock is down 39.20% in six months but is still up 17.37% over the year.
Other important aspects of investing include analyzing insider moves among the majority shareholders. Reading the tea leaves of a stock can sometimes provide important information about what the future holds for a stock.
Most Recent Development
March 3, 2021, Shore Bancshares, Inc. (NASDAQ: SHBI) and Severn Bancorp, Inc. (NASDAQ: SVBI), revealed the big announcement of an agreement. Under the deal, Shore will merge with Severn for approximately $146 million in stock and cash. The merger is estimated to be worth $11.30 per share of Severn common stock, based on a $15.64 closing price of Shore’s par stock on March 2, 2021. According to Shore, the transaction should boost EPS by over 30% by 2022, because of projected cost savings of approximately 35%.
Severn has assets of $952.6 million, loans of $679.2 million, and deposits of $806 million as of December 31, 2020. Seven Severn Bank offices are located throughout Anne Arundel County, Maryland. Upon completion of the transaction, Shore’s total assets will total approximately $2.9 billion on a pro forma basis as of December 31, 2020.
Lloyd L. Beatty, CEO of Shore, said, The new relationship with Severn is something to be excited about. The merger brings new products and talent to our organisation as well as filling in a gap in our footprint in Anne Arundel County.
Other important aspects of investing include analyzing insider moves among the majority shareholders. Reading the tea leaves of stock can sometimes provide important information about what the future holds for a stock.32.90% of all company shares are held by insiders at Severn Bancorp Inc. An increase of 1.50% has been observed in insider trades over the last six months. Insiders now hold more than 25.50% of Severn Bancorp Inc. stocks after these transactions.