Alerus Financial (NASDAQ:ALRS) Reaches New 1-Year High - Should You Buy?

Key Points

• Alerus Financial shares hit a new 52-week high, trading as high as $31.86 and ending around $31.80, up about 2% on the day. The move came as the stock continued to trade above both its 50-day and 200-day moving averages.
• Analyst sentiment has improved, with multiple recent upgrades and higher price targets. MarketBeat data shows an average rating of “Moderate Buy” and an average target price of $30.50, slightly below the current share price.
• The company delivered solid fundamentals and raised its dividend, reporting quarterly EPS of $0.89 versus expectations of $0.58 and revenue above estimates. Alerus also increased its quarterly dividend to $0.22 per share, implying a 2.8% yield.

Alerus Financial (NASDAQ:ALRS - Get Free Report)'s share price hit a new 52-week high on Wednesday . The stock traded as high as $31.86 and last traded at $31.8040, with a volume of 110817 shares. The stock had previously closed at $31.24.

Analysts Set New Price Targets

Several research analysts recently issued reports on the company. Weiss Ratings raised Alerus Financial from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Wednesday, May 6th. Wall Street Zen raised shares of Alerus Financial from a "hold" rating to a "buy" rating in a research report on Saturday, May 30th. Piper Sandler lifted their price objective on shares of Alerus Financial from $28.50 to $32.00 and gave the company a "neutral" rating in a research note on Friday, June 26th. DA Davidson boosted their target price on Alerus Financial from $26.00 to $29.00 and gave the company a "neutral" rating in a research report on Friday, May 1st. Finally, Zacks Research upgraded shares of Alerus Financial from a "hold" rating to a "strong-buy" rating in a report on Monday, May 4th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, Alerus Financial has an average rating of "Moderate Buy" and an average target price of $30.50.

Alerus Financial Stock Up 2.0%

The stock has a fifty day moving average price of $29.24 and a 200 day moving average price of $26.08. The company has a debt-to-equity ratio of 0.10, a current ratio of 0.90 and a quick ratio of 0.90. The stock has a market capitalization of $800.77 million, a P/E ratio of 30.92 and a beta of 0.68.

Alerus Financial (NASDAQ:ALRS - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The company reported $0.89 earnings per share for the quarter, topping the consensus estimate of $0.58 by $0.31. The firm had revenue of $75.78 million for the quarter, compared to analysts' expectations of $73.78 million. Alerus Financial had a net margin of 6.74% and a return on equity of 14.39%. On average, research analysts forecast that Alerus Financial will post 3.03 earnings per share for the current year.

Alerus Financial Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, July 10th. Stockholders of record on Friday, June 26th were paid a dividend of $0.22 per share. This represents a $0.88 annualized dividend and a dividend yield of 2.8%. This is a positive change from Alerus Financial's previous quarterly dividend of $0.21. The ex-dividend date of this dividend was Friday, June 26th. Alerus Financial's payout ratio is currently 85.44%.

Institutional Trading of Alerus Financial

Institutional investors and hedge funds have recently bought and sold shares of the stock. AQR Capital Management LLC lifted its stake in Alerus Financial by 265.7% during the 2nd quarter. AQR Capital Management LLC now owns 236,720 shares of the company's stock valued at $5,123,000 after acquiring an additional 171,984 shares during the period. Phocas Financial Corp. grew its stake in shares of Alerus Financial by 102.2% in the fourth quarter. Phocas Financial Corp. now owns 334,357 shares of the company's stock worth $7,530,000 after acquiring an additional 168,987 shares during the period. Empowered Funds LLC bought a new stake in shares of Alerus Financial in the first quarter worth approximately $1,951,000. Goldman Sachs Group Inc. raised its holdings in shares of Alerus Financial by 37.1% during the fourth quarter. Goldman Sachs Group Inc. now owns 298,060 shares of the company's stock valued at $6,712,000 after purchasing an additional 80,599 shares during the last quarter. Finally, First Trust Advisors LP purchased a new position in shares of Alerus Financial during the third quarter valued at approximately $1,742,000. 51.25% of the stock is currently owned by hedge funds and other institutional investors.

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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