Amalgamated Financial (NASDAQ:AMAL) Shares Gap Down Following Weak Earnings

Key Points

• EPS miss: Amalgamated Financial reported quarterly EPS of $0.80 vs. $0.98 expected, prompting the stock to gap down from $42.31 to an open of $38.25 and trade down roughly 5.1%.
• The firm declared a quarterly dividend of $0.17 per share (annualized $0.68, ~1.7% yield), with an ex-dividend date of May 5 and payment on May 21.
• Insiders sold 8,482 shares in the past 90 days (insider ownership 1.63%) while institutional ownership is about 75.9%; analysts hold a consensus "Moderate Buy" rating with a $40 price target.

Shares of Amalgamated Financial Corp. (NASDAQ:AMAL - Get Free Report) gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $42.31, but opened at $38.25. Amalgamated Financial shares last traded at $39.7920, with a volume of 27,152 shares changing hands.

The company reported $0.80 EPS for the quarter, missing analysts' consensus estimates of $0.98 by ($0.18). The firm had revenue of $91.36 million during the quarter, compared to analyst estimates of $91.16 million. Amalgamated Financial had a return on equity of 14.60% and a net margin of 23.05%.

Amalgamated Financial Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, May 21st. Investors of record on Tuesday, May 5th will be given a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a yield of 1.7%. The ex-dividend date of this dividend is Tuesday, May 5th. Amalgamated Financial's payout ratio is presently 19.94%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on the company. Piper Sandler started coverage on Amalgamated Financial in a research report on Monday, March 16th. They set a "neutral" rating and a $41.00 price objective for the company. Weiss Ratings raised shares of Amalgamated Financial from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, February 26th. Two analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $40.00.

Insider Buying and Selling at Amalgamated Financial

In other Amalgamated Financial news, EVP Sean Searby sold 4,948 shares of the company's stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $39.42, for a total transaction of $195,050.16. Following the completion of the sale, the executive vice president directly owned 23,055 shares in the company, valued at $908,828.10. This represents a 17.67% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Tyrone Graham sold 2,285 shares of the business's stock in a transaction dated Friday, February 20th. The stock was sold at an average price of $39.91, for a total value of $91,194.35. Following the transaction, the executive vice president directly owned 13,443 shares of the company's stock, valued at $536,510.13. This represents a 14.53% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 8,482 shares of company stock worth $335,658. 1.63% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in AMAL. Hsbc Holdings PLC grew its stake in shares of Amalgamated Financial by 123.8% in the fourth quarter. Hsbc Holdings PLC now owns 52,596 shares of the company's stock worth $1,685,000 after acquiring an additional 29,090 shares during the last quarter. Invesco Ltd. lifted its holdings in shares of Amalgamated Financial by 3.1% during the 4th quarter. Invesco Ltd. now owns 41,687 shares of the company's stock worth $1,335,000 after acquiring an additional 1,256 shares during the period. Empowered Funds LLC increased its stake in Amalgamated Financial by 9.3% in the fourth quarter. Empowered Funds LLC now owns 126,644 shares of the company's stock valued at $4,056,000 after acquiring an additional 10,759 shares during the period. Janus Henderson Group PLC acquired a new position in Amalgamated Financial in the fourth quarter worth about $209,000. Finally, First Manhattan CO. LLC. lifted its stake in Amalgamated Financial by 2.3% during the fourth quarter. First Manhattan CO. LLC. now owns 407,025 shares of the company's stock worth $13,037,000 after purchasing an additional 9,340 shares during the period. 75.93% of the stock is owned by institutional investors.

Amalgamated Financial Stock Down 5.1%

The business has a fifty day simple moving average of $39.68 and a two-hundred day simple moving average of $34.47. The company has a quick ratio of 0.67, a current ratio of 0.67 and a debt-to-equity ratio of 0.09. The company has a market capitalization of $1.20 billion, a price-to-earnings ratio of 11.76 and a beta of 0.82.

Amalgamated Financial Company Profile

Amalgamated Financial Corp. NASDAQ: AMAL is the bank holding company for Amalgamated Bank, a fully insured commercial bank with a historic mission of serving labor unions, progressive non-profits and mission-driven organizations. Founded in 1923 by the Amalgamated Clothing Workers of America, Amalgamated Bank has grown into a national institution offering a broad suite of banking services, including deposit accounts, commercial and consumer lending, cash management, and treasury solutions tailored to organizations with social responsibility or union affiliations.

In addition to core banking, Amalgamated Financial provides wealth management and trust services, retirement plan consulting and impact investing strategies.

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