Alerus Financial (NASDAQ:ALRS) Sets New 12-Month High - Still a Buy?

Key Points

• Alerus Financial reached a new 52-week high of $34.40, closing at $34.12 and bringing its market capitalization to approximately $857 million.
• Analyst views remain generally positive, with MarketBeat reporting a consensus “Moderate Buy” rating and an average price target of $35.50, though some firms maintain neutral or hold ratings.
• The company beat quarterly expectations with earnings of $0.80 per share versus $0.77 expected and revenue of $80 million. Alerus also raised its quarterly dividend to $0.22 per share, equivalent to a 2.6% yield.

Alerus Financial (NASDAQ:ALRS - Get Free Report) hit a new 52-week high during mid-day trading on Wednesday . The company traded as high as $34.40 and last traded at $34.12, with a volume of 192967 shares traded. The stock had previously closed at $34.12.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on ALRS. Weiss Ratings upgraded Alerus Financial from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Wednesday, May 6th. Piper Sandler increased their target price on Alerus Financial from $32.00 to $37.00 and gave the stock a "neutral" rating in a research report on Friday. DA Davidson set a $36.00 price target on Alerus Financial in a report on Friday. Wall Street Zen cut shares of Alerus Financial from a "buy" rating to a "hold" rating in a research note on Saturday. Finally, Keefe, Bruyette & Woods upped their target price on Alerus Financial from $29.00 to $32.00 and gave the stock a "market perform" rating in a research report on Friday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, Alerus Financial has a consensus rating of "Moderate Buy" and an average price target of $35.50.

Alerus Financial Stock Performance

The firm has a market capitalization of $857.44 million, a price-to-earnings ratio of 32.19 and a beta of 0.68. The firm's 50 day moving average is $30.87 and its 200 day moving average is $27.12. The company has a quick ratio of 0.90, a current ratio of 0.90 and a debt-to-equity ratio of 0.10.

Alerus Financial (NASDAQ:ALRS - Get Free Report) last issued its earnings results on Wednesday, July 29th. The company reported $0.80 earnings per share for the quarter, topping analysts' consensus estimates of $0.77 by $0.03. The firm had revenue of $80.00 million during the quarter, compared to analysts' expectations of $76.99 million. Alerus Financial had a net margin of 6.87% and a return on equity of 14.53%. Equities analysts forecast that Alerus Financial will post 3.03 earnings per share for the current year.

Alerus Financial Increases Dividend

The business 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. The ex-dividend date of this dividend was Friday, June 26th. This represents a $0.88 annualized dividend and a dividend yield of 2.6%. This is a boost from Alerus Financial's previous quarterly dividend of $0.21. Alerus Financial's dividend payout ratio is 83.02%.

Institutional Investors Weigh In On Alerus Financial

A number of institutional investors and hedge funds have recently modified their holdings of the stock. AQR Capital Management LLC purchased a new stake in shares of Alerus Financial during the first quarter valued at $1,195,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in Alerus Financial by 4.2% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 13,420 shares of the company's stock worth $248,000 after buying an additional 546 shares during the period. Jane Street Group LLC purchased a new stake in Alerus Financial during the first quarter valued at about $441,000. Cetera Investment Advisers boosted its holdings in shares of Alerus Financial by 29.7% in the second quarter. Cetera Investment Advisers now owns 28,720 shares of the company's stock worth $622,000 after buying an additional 6,575 shares during the period. Finally, Rhumbline Advisers boosted its holdings in shares of Alerus Financial by 3.4% in the second quarter. Rhumbline Advisers now owns 32,263 shares of the company's stock worth $698,000 after buying an additional 1,072 shares during the period. 51.25% of the stock is owned by institutional investors and hedge funds.

Alerus Financial Company Profile

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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