Director Buys DCOM Shares in Equity Grant

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On July 2nd, 2025, Paul M. Aguggia, in his role as Director, disclosed the procurement of 2,061 shares of Dime Community Bancshares (DCOM), following a Rule 16b-3(d) grant. This action boosted his direct ownership to a total of 12,893 shares.

Transaction summary

Metric Value
Shares traded 2,061
Transaction value $59,913.27
Post-transaction shares 12,893
Post-transaction value $374,799.51
Price vs. MA50 8.8% above the 50-day moving average
Price vs. MA200 0.25% below the 200-day moving average
One-year performance 47.1%

Key questions

Is the size of this 2,061-share transaction smaller than what Aguggia usually trades, or is it more in line with his infrequent trading pattern? This transaction is less than his median trade size (2,227 shares) and significantly smaller than the amount he trades at the 75th percentile (2,500 shares).

In the context of the market on July 10, I noticed that the stock trade I observed was executed at a price $29.07 per share, which was approximately 8.8% higher than its 50-day moving average. Interestingly, it was almost aligned with its 200-day average. So, the timing of this transaction seems to be somewhat strategic, given the recent stock performance and these key averages.

What percentage of ownership does Aguggia have in Dime Community Bancshares following the transaction? Aguggia now owns approximately 12,893 shares or 0.03% of the total outstanding shares, which is within the usual range for directors at Dime Community Bancshares.

The transaction, as detailed in the Form 4, appears to be a non-cash equity award that falls under Rule 16b-3(d), and not a cash purchase or options exercise in the open market.

Company overview

Metric Value
Market capitalization $1.25 billion
Revenue (TTM) $295.4 million
Net income (TTM) $25.1 million
Dividend yield 3.44%

Company snapshot

  • Offers a comprehensive suite of commercial banking products, including commercial real estate loans, multi-family and residential mortgages, business and consumer lending, deposit accounts, and investment services.
  • Serves small to mid-sized businesses, local municipalities, and individual consumers across Long Island and New York City boroughs.

Community Bancshares serves the New York metropolitan region as a regional bank holding firm. They provide a variety of both business and consumer banking solutions.

Foolish take

Aguggia received 2,061 additional shares last year, which were part of his compensation for being a member on Dime Community Bancshares’ board of directors. Approximately 57% of his total compensation was paid out in cash, while the remaining balance was given as stock awards.

In essence, it’s just standard practice – a director earning remuneration for his provided services. Aguggia, who has been a director since September 2022 and boasts three decades of experience from legal and financial corporations, is no exception. He currently holds positions on Dime Community’s compensation and corporate governance committees. These additional roles contribute to a somewhat more substantial compensation package compared to other independent directors in similar boardrooms.

In essence, there’s no need to delve too deeply into this straightforward transfer of shares. Aguggia didn’t perform a business or financial assessment of the company before accepting these shares, which had a total value of $0. This was essentially an anticipated stock allocation given in return for his services on the board.

In 2025, Dime Community’s shares have been declining, dropping by 6.5%, while the iShares Regional Banks ETF (IAT) rose by 2.8%. Lately, the stock has been unstable, and Aguggia might come to view this price drop as a profitable opportunity for portfolio expansion. Since his compensation is tied to dollar value rather than a specific number of shares, Aguggia stands to gain more Dime Community shares with lower prices, similar to any ordinary investor accumulating more Dime Community stock certificates for their money. Even insiders who receive their stock at no cost can benefit from purchasing during dips.

Glossary

1. As an outside observer, I note Rule 16b-3(d) – a SEC regulation enabling company insiders to acquire equity awards without incurring short-swing profit liability.

2. In this context, a Director is a member of the company’s board who helps guide management and make significant decisions on behalf of shareholders.

3. Insiders utilize Form 4 – an SEC filing – to disclose alterations in their ownership of the company’s securities.

4. Equity grants are non-cash awards, typically given as compensation, representing shares or stock options that are not purchased with cash.

5. The Moving Average (MA50/MA200) is an average stock price calculated over the past 50 or 200 days and used to spot trends.

6. Outstanding shares refer to the total number of a company’s shares currently owned by all shareholders, including insiders and the public.

7. The Median trade size signifies the middle value of all insider trades, helping gauge typical transaction amounts.

8. The 75th percentile is a statistical measure; it indicates larger-than-average trades since 75% of values fall below this number.

9. A Non-cash equity award is compensation offered in the form of shares or options instead of cash payment.

10. The Dividend yield represents the annual dividend distribution divided by the stock price, expressed as a percentage.

11. A Regional bank holding company is a corporation that owns and manages one or more banks operating within a specific geographical area.

12. A Commercial real estate loan is a credit facility secured by property used for business purposes like offices, retail, or industrial buildings.

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2025-07-24 17:37