Alerus Financial (NASDAQ:ALRS) Sets New 12-Month High After Strong Earnings

Key Points

• Alerus Financial's shares hit a new 52-week high after an earnings beat, reporting EPS of $0.89 versus $0.58 expected and revenue of $75.78M versus $73.83M, with the stock trading around $26.83.
• The company declared a quarterly dividend of $0.21 (annualized $0.84) for a ~3.1% yield, but the dividend payout ratio is elevated at 127.27%.
• Analyst views are mixed: MarketBeat shows a consensus "Hold" rating with a $26.00 price target, while the stock trades at a P/E of 40.64 and a market cap of about $685.7M.

Alerus Financial (NASDAQ:ALRS - Get Free Report)'s share price hit a new 52-week high on Thursday following a stronger than expected earnings report. The company traded as high as $26.95 and last traded at $26.8260, with a volume of 44490 shares trading hands. The stock had previously closed at $25.75.

The company reported $0.89 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.58 by $0.31. The business had revenue of $75.78 million during the quarter, compared to analysts' expectations of $73.83 million. Alerus Financial had a net margin of 4.36% and a return on equity of 13.18%.

Alerus Financial Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, April 10th. Investors of record on Friday, March 27th were issued a $0.21 dividend. This represents a $0.84 dividend on an annualized basis and a yield of 3.1%. The ex-dividend date of this dividend was Friday, March 27th. Alerus Financial's dividend payout ratio is 127.27%.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on the company. Hovde Group downgraded Alerus Financial from an "outperform" rating to a "market perform" rating in a report on Wednesday, January 7th. Keefe, Bruyette & Woods boosted their price objective on Alerus Financial from $24.00 to $25.00 and gave the company a "market perform" rating in a research note on Friday, January 30th. Raymond James Financial set a $29.00 price objective on Alerus Financial and gave the company a "strong-buy" rating in a research note on Friday, January 30th. Zacks Research cut Alerus Financial from a "strong-buy" rating to a "hold" rating in a research note on Thursday, April 2nd. Finally, DA Davidson boosted their price objective on Alerus Financial from $25.00 to $26.00 and gave the company a "neutral" rating in a research note on Friday, January 30th. One analyst has rated the stock with a Strong Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $26.00.

Institutional Investors Weigh In On Alerus Financial

Several large investors have recently modified their holdings of ALRS. NewEdge Advisors LLC raised its stake in shares of Alerus Financial by 90.1% during the second quarter. NewEdge Advisors LLC now owns 1,544 shares of the company's stock worth $33,000 after purchasing an additional 732 shares during the last quarter. Larson Financial Group LLC raised its position in Alerus Financial by 50.0% in the fourth quarter. Larson Financial Group LLC now owns 1,500 shares of the company's stock worth $34,000 after acquiring an additional 500 shares in the last quarter. CANADA LIFE ASSURANCE Co raised its position in Alerus Financial by 25.7% in the fourth quarter. CANADA LIFE ASSURANCE Co now owns 2,222 shares of the company's stock worth $50,000 after acquiring an additional 455 shares in the last quarter. CIBC Private Wealth Group LLC acquired a new stake in shares of Alerus Financial in the 3rd quarter worth approximately $52,000. Finally, AlphaQuest LLC acquired a new stake in shares of Alerus Financial in the 3rd quarter worth approximately $59,000. Hedge funds and other institutional investors own 51.25% of the company's stock.

Alerus Financial Trading Up 4.2%

The firm has a market cap of $685.65 million, a price-to-earnings ratio of 40.64 and a beta of 0.59. The business has a fifty day moving average of $24.48 and a two-hundred day moving average of $23.38. The company has a debt-to-equity ratio of 0.10, a quick ratio of 0.89 and a current ratio of 0.90.

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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