Arrow Financial (NASDAQ:AROW) Posts Earnings Results, Beats Expectations By $0.08 EPS

Key Points

• Arrow Financial reported quarterly earnings of $0.70 EPS, exceeding expectations by $0.08, alongside revenue of $51.57 million which surpassed analyst predictions.
• The company announced an increase in its quarterly dividend to $0.29 per share, reflecting a positive change from the previous $0.28, with a yield of 4.32%.
• Arrow Financial's stock saw a minor decline to $26.85 following the earnings report, while analysts set new price targets ranging from $28.00 to $28.50.

Arrow Financial (NASDAQ:AROW - Get Free Report) posted its quarterly earnings results on Thursday. The financial services provider reported $0.70 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.62 by $0.08, Zacks reports. Arrow Financial had a net margin of 13.28% and a return on equity of 8.69%. The firm had revenue of $51.57 million for the quarter, compared to analysts' expectations of $39.83 million.

Arrow Financial Stock Performance

Shares of Arrow Financial stock traded down $0.20 during trading hours on Friday, reaching $26.85. The company's stock had a trading volume of 27,664 shares, compared to its average volume of 35,559. Arrow Financial has a one year low of $22.72 and a one year high of $34.63. The company's 50 day simple moving average is $26.37 and its 200 day simple moving average is $26.18. The company has a debt-to-equity ratio of 0.06, a quick ratio of 0.93 and a current ratio of 0.93. The stock has a market cap of $447.59 million, a P/E ratio of 14.67 and a beta of 0.78.

Arrow Financial Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, August 25th. Shareholders of record on Monday, August 11th will be paid a dividend of $0.29 per share. This is a positive change from Arrow Financial's previous quarterly dividend of $0.28. The ex-dividend date is Monday, August 11th. This represents a $1.16 annualized dividend and a yield of 4.32%. Arrow Financial's payout ratio is presently 65.88%.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on AROW shares. Piper Sandler dropped their target price on shares of Arrow Financial from $30.00 to $28.00 and set a "neutral" rating for the company in a research report on Monday, May 5th. Wall Street Zen raised Arrow Financial from a "sell" rating to a "hold" rating in a report on Saturday, July 12th. Finally, Hovde Group upped their price objective on Arrow Financial from $27.50 to $28.50 and gave the company a "market perform" rating in a research note on Friday.

Insider Activity at Arrow Financial

In related news, Director Raymond F. O'conor sold 2,000 shares of the stock in a transaction dated Thursday, May 1st. The shares were sold at an average price of $23.78, for a total transaction of $47,560.00. Following the sale, the director owned 29,293 shares in the company, valued at $696,587.54. This represents a 6.39% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Company insiders own 3.55% of the company's stock.

Hedge Funds Weigh In On Arrow Financial

Several institutional investors have recently made changes to their positions in the stock. Jane Street Group LLC lifted its holdings in shares of Arrow Financial by 131.3% in the 1st quarter. Jane Street Group LLC now owns 27,272 shares of the financial services provider's stock worth $717,000 after purchasing an additional 15,482 shares during the last quarter. AQR Capital Management LLC increased its position in Arrow Financial by 31.0% in the first quarter. AQR Capital Management LLC now owns 12,470 shares of the financial services provider's stock worth $328,000 after buying an additional 2,949 shares during the period. Acadian Asset Management LLC acquired a new stake in Arrow Financial in the first quarter worth $311,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in Arrow Financial by 4.1% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 9,796 shares of the financial services provider's stock valued at $258,000 after buying an additional 390 shares during the last quarter. 46.71% of the stock is owned by institutional investors.

About Arrow Financial

Arrow Financial Corporation, a bank holding company, provides commercial and consumer banking, and financial products and services. The company's deposit products include demand deposits, interest-bearing checking accounts, savings deposits, time deposits, and other time deposits. Its lending activities comprise commercial loans, such as term loans, time notes, and lines of credit; and commercial real estate loans to finance real estate purchases, refinancing, expansions, and enhancement to commercial properties, as well as commercial construction and land development loans to finance projects.

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