Wall Street Zen Downgrades Alerus Financial (NASDAQ:ALRS) to Hold

Key Points

• Alerus Financial's rating was downgraded from "buy" to "hold" by Wall Street Zen in a recent research report.
• Several analysts have increased their price targets for Alerus Financial, with a consensus target price of $25.63 and an average rating of "hold."
• The company reported better-than-expected quarterly earnings, with an EPS of $0.72, surpassing analysts' estimates of $0.56.

Wall Street Zen lowered shares of Alerus Financial (NASDAQ:ALRS - Free Report) from a buy rating to a hold rating in a research note published on Sunday.

ALRS has been the topic of a number of other reports. Keefe, Bruyette & Woods raised their price target on Alerus Financial from $22.00 to $25.00 and gave the company a "market perform" rating in a report on Tuesday, July 29th. Raymond James Financial reissued an "outperform" rating and set a $27.00 price target (up from $24.00) on shares of Alerus Financial in a report on Tuesday, July 29th. Piper Sandler raised their price target on Alerus Financial from $24.00 to $25.50 and gave the company a "neutral" rating in a report on Wednesday, July 30th. Finally, DA Davidson raised their price target on Alerus Financial from $20.00 to $25.00 and gave the company a "neutral" rating in a report on Tuesday, July 29th. One analyst has rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $25.63.

Alerus Financial Stock Performance

ALRS traded down $0.06 during trading hours on Friday, hitting $21.50. 50,229 shares of the stock were exchanged, compared to its average volume of 77,808. The stock has a 50-day simple moving average of $21.76 and a 200-day simple moving average of $20.40. Alerus Financial has a 12 month low of $15.78 and a 12 month high of $24.41. The stock has a market cap of $546.10 million, a price-to-earnings ratio of 12.72 and a beta of 0.71. The company has a debt-to-equity ratio of 0.11, a current ratio of 0.88 and a quick ratio of 0.87.

Alerus Financial (NASDAQ:ALRS - Get Free Report) last posted its earnings results on Monday, July 28th. The company reported $0.72 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.56 by $0.16. The company had revenue of $74.80 million for the quarter, compared to analysts' expectations of $69.96 million. Alerus Financial had a return on equity of 10.21% and a net margin of 11.06%. Analysts anticipate that Alerus Financial will post 2.14 earnings per share for the current year.

Alerus Financial Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, July 11th. Investors of record on Friday, June 27th were paid a $0.21 dividend. The ex-dividend date of this dividend was Friday, June 27th. This represents a $0.84 dividend on an annualized basis and a yield of 3.9%. This is an increase from Alerus Financial's previous quarterly dividend of $0.20. Alerus Financial's dividend payout ratio (DPR) is 49.70%.

Hedge Funds Weigh In On Alerus Financial

Institutional investors have recently bought and sold shares of the stock. Tower Research Capital LLC TRC increased its stake in Alerus Financial by 457.6% in the 4th quarter. Tower Research Capital LLC TRC now owns 1,277 shares of the company's stock worth $25,000 after purchasing an additional 1,048 shares in the last quarter. Thompson Investment Management Inc. purchased a new position in Alerus Financial in the 2nd quarter worth about $32,000. NewEdge Advisors LLC increased its stake in Alerus Financial by 90.1% in the 2nd quarter. NewEdge Advisors LLC now owns 1,544 shares of the company's stock worth $33,000 after purchasing an additional 732 shares in the last quarter. Legal & General Group Plc boosted its position in Alerus Financial by 32.7% during the 4th quarter. Legal & General Group Plc now owns 2,025 shares of the company's stock worth $39,000 after acquiring an additional 499 shares during the period. Finally, Summit Investment Advisors Inc. lifted its holdings in Alerus Financial by 31.9% in the 4th quarter. Summit Investment Advisors Inc. now owns 2,349 shares of the company's stock worth $45,000 after purchasing an additional 568 shares during the last quarter. Hedge funds and other institutional investors own 51.25% of the company's stock.

About Alerus Financial

Alerus Financial Corporation operates as the bank holding company for Alerus Financial, National Association that engages in the provision of various financial services to businesses and consumers. The company operates in four segments: Banking, Mortgage, Retirement and Benefit Services, and Wealth Management.