Amalgamated Financial (NASDAQ: AMAL) holder Workers United trims its stake by 1.4%

What happened

Workers United, a 10% owner of Amalgamated Financial Corp. (NASDAQ: AMAL), sold 92,809 shares of common stock on Nov. 4 for about $4.72 million.

The shares sold at a weighted average of $50.86 across multiple transactions, in a range of $50.57 to $51.40. Workers United held 6,747,407 shares directly afterward, according to the Form 4 signed Nov. 6.

The report is filed jointly for a group of related Workers United entities, including regional joint boards and a Canadian council. The shares sold appear on the line for Workers United itself, while the other entities report their own direct holdings on separate lines.

Each reporting person disclaims beneficial ownership beyond its pecuniary interest. The filing says it is the first of two identical reports on the same transaction, because the SEC's electronic system accepts at most 10 joint filers per report.

Key numbers

Metric Latest Change Source
Shares sold 92,809 shares SEC Form 4
Weighted average sale price $50.86 SEC Form 4
Total value of the sale $4.72 million SEC Form 4
Workers United holding after the sale 6,747,407 shares SEC Form 4
Sale as share of holding before the trade 1.4% Calculated from SEC Form 4

Read more: Amalgamated Financial (AMAL) company research

Why it matters

The sale was small against the position. By OptimistFi's calculation, it equaled 1.4% of the 6,840,216 shares Workers United held before the trade. The trades were executed on a single day, Nov. 4, and the Form 4 was signed two days later, on Nov. 6.

OptimistFi has argued that Amalgamated Financial builds a defensible banking franchise by turning impact credentials and a large trust and custody platform into sticky deposits, fee-bearing assets and disciplined lending. A holder trimming its stake does not test any of those operating claims directly, so the view stays mixed rather than shifting.

This is a single sale by a holder that still owns most of its position, so it says little about the franchise on its own.

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What's next

Amalgamated Financial's next quarterly report is the next scheduled test of the case. Deposit costs, trust and custody fee income and loan quality are the lines in that report that map to OptimistFi's view.

Growth in relationship deposits and fee income would support that view, while further sales by Workers United would add weight to the mixed reading.

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Sources

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Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.