Insiders Active in Silicon Valley Bank (SIVB)
SVB Financial (SIVB) with a pair of notable insider buys recently from director Garen Staglin of 1,000 shares between 6/24 and 7/1, a more than $555,000 investment combined. The last notable open market buy was in February when a director bought $260K in stock at $523.30. Shares have traded well in 2021 up around 45% and flagging now under $600 and new highs. A breakout has room to $700+. The $30.5B company trades 22X earnings, 3.35X book and 21.5X FCF with high-single digit growth. SIVB has four main components including a commercial bank, private bank, and capital research arm after their merger with Leerink. The company is closely tied to Silicon Valley with significant lending to start-ups, VC, and private equity and benefitting from the surge in deals this year as well as return to focus on growth. Analysts have an average target for shares of $568 with a Street High $725. Maxim with a $700 PT and cites the company’s blowout Q1 earnings beat that included a 22% deposit growth, 5.5% loan growth, and stable credit quality. Truist positive in late April driven by the outperformance in innovation economy and the management’s outstanding execution that are still resulting in strong revenue growth. JP Morgan positive noting that with SVB now having nearly $300B of client funds, it has now become the large bank itself in the innovation economy. Short interest is 1.55%. Hedge fund ownership rose 15% in Q1.