Momentum Stock Watch: Porter Bancorp Inc.(PBIB)

Company Profile:

Porter Bancorp, Inc. operates as the holding company for PBI Bank that provides commercial and personal banking products and services, and financial services in Central Kentucky and Louisville. The company offers deposit products, including checking, savings, and term certificate accounts, as well as NOW accounts, money market accounts, and fixed rate certificates. It provides commercial loans for equipment purchases, working capital, and other financing needs of business enterprises; and commercial real estate loans that include loans on properties occupied by the borrowers and on properties for commercial purposes, as well as construction and development loans secured by land under development, or homes and commercial buildings under construction. The company operates 17 banking offices in 12 counties in Kentucky. Porter Bancorp, Inc. was founded in 1902 and is headquartered in Louisville, Kentucky.

Recent News:

The Company reported net loss attributable to common shareholders for the second quarter of 2015 of $2.0 million, or ($0.08) per basic and diluted common share, compared with net loss attributable to common shareholders of $6.3 million, or ($0.53) per basic and diluted share, for the second quarter of 2014.

The Company is serving as sponsor for a unique Kentucky Habitat for Humanity (KyHFH) exhibit at this year’s Kentucky State Fair, which takes place in Louisville, Ky. from Thursday, Aug. 20, to Sunday, Aug. 30.

Bradford T Ray , director of Porter Bancorp, Inc. purchased 20,000 shares on Aug 18, 2015. The Insider buying transaction was disclosed on Aug 19, 2015 to the Securities and Exchange Commission. The shares were purchased at $1.69 per share for a total value of $33,792.00.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

PBIB’s strengths can be seen in its strong growth. Technical indicators signal the bullish signs, as there is a bullish cross in Stochastic Oscillator. RSI is increasing to the bull territory, which stands at 48.63. The current P/BV ratio indicates it is undervalued compared to the average P/BV ratio of the industry and the sector. We rate Porter Bancorp Inc.(PBIB) a BUY.