Alerus Financial (NASDAQ:ALRS) Hits New 12-Month High After Better-Than-Expected Earnings

Key Points

• Alerus Financial shares reached a new 52-week high of $33.50 after the company reported quarterly earnings of $0.80 per share, beating estimates by $0.02, while revenue of $80.0 million exceeded expectations of $76.99 million.
• The company increased its quarterly dividend to $0.22 per share, or $0.88 annually, resulting in a 2.6% yield; its dividend payout ratio is 85.44%.
• Analyst sentiment is generally positive, with a consensus “Moderate Buy” rating and a $30.50 price target, while institutional investors and hedge funds own 51.25% of the stock.

Alerus Financial (NASDAQ:ALRS - Get Free Report) shares hit a new 52-week high on Thursday following a better than expected earnings announcement. The company traded as high as $33.50 and last traded at $33.2250, with a volume of 182484 shares traded. The stock had previously closed at $32.95.

The company reported $0.80 earnings per share for the quarter, topping the consensus estimate of $0.78 by $0.02. The business had revenue of $80.00 million during the quarter, compared to analysts' expectations of $76.99 million. Alerus Financial had a return on equity of 14.39% and a net margin of 6.74%.

Alerus Financial Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, July 10th. Stockholders of record on Friday, June 26th were given a $0.22 dividend. This represents a $0.88 dividend on an annualized basis and a dividend yield of 2.6%. This is a boost from Alerus Financial's previous quarterly dividend of $0.21. The ex-dividend date was Friday, June 26th. Alerus Financial's dividend payout ratio (DPR) is presently 85.44%.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on the stock. Zacks Research raised shares of Alerus Financial from a "hold" rating to a "strong-buy" rating in a research note on Monday, May 4th. Raymond James Financial assumed coverage on Alerus Financial in a research report on Thursday, July 9th. They issued an "outperform" rating and a $34.00 price target for the company. DA Davidson boosted their price objective on Alerus Financial from $26.00 to $29.00 and gave the stock a "neutral" rating in a research note on Friday, May 1st. Wall Street Zen raised Alerus Financial from a "hold" rating to a "buy" rating in a research note on Saturday, May 30th. Finally, Keefe, Bruyette & Woods boosted their price target on shares of Alerus Financial from $25.00 to $27.00 and gave the company a "market perform" rating in a research report on Friday, May 1st. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, Alerus Financial has a consensus rating of "Moderate Buy" and a consensus price target of $30.50.

Institutional Trading of Alerus Financial

Hedge funds have recently made changes to their positions in the business. Empowered Funds LLC acquired a new position in shares of Alerus Financial in the first quarter worth $1,951,000. Quantinno Capital Management LP increased its holdings in Alerus Financial by 60.4% during the 1st quarter. Quantinno Capital Management LP now owns 92,252 shares of the company's stock worth $2,187,000 after purchasing an additional 34,754 shares during the period. First Trust Advisors LP boosted its stake in shares of Alerus Financial by 0.6% in the 1st quarter. First Trust Advisors LP now owns 81,208 shares of the company's stock valued at $1,925,000 after buying an additional 503 shares during the period. Meeder Asset Management Inc. acquired a new position in shares of Alerus Financial during the first quarter worth about $90,000. Finally, Dimensional Fund Advisors LP grew its holdings in Alerus Financial by 6.8% during the 1st quarter. Dimensional Fund Advisors LP now owns 886,815 shares of the company's stock worth $21,027,000 after acquiring an additional 56,763 shares in the last quarter. Institutional investors and hedge funds own 51.25% of the company's stock.

Alerus Financial Stock Up 1.0%

The firm has a fifty day moving average of $30.43 and a 200 day moving average of $26.84. The stock has a market cap of $836.33 million, a PE ratio of 32.23 and a beta of 0.68. The company has a quick ratio of 0.90, a current ratio of 0.90 and a debt-to-equity ratio of 0.10.

About Alerus Financial

Alerus Financial Corporation NASDAQ: ALRS is a diversified financial services company headquartered in Grand Forks, North Dakota. The firm provides a full range of commercial and consumer banking products, including deposit accounts, lending solutions and treasury management services for individuals, small businesses and larger corporate clients. Through its community banking network, Alerus emphasizes local decision-making and personalized service to meet the needs of its varied client base.

In addition to traditional banking offerings, Alerus operates a national mortgage origination and servicing platform that delivers home purchase and refinance loans.

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