Arrow Financial (NASDAQ:AROW) Share Price Passes Above 200-Day Moving Average - Time to Sell?

Key Points

• Technical breakout: Arrow Financial shares crossed above their 200-day moving average of $32.04, trading as high as $37.29 and last at $36.31 on the reported session.
• Solid quarter and bigger payout: The company beat Q4 EPS estimates ($0.85 vs. $0.81) and raised its quarterly dividend to $0.30 (annualized $1.20, ~3.3% yield) with a 45.3% payout ratio.
• Mixed analyst view despite recent upgrades: Analysts are split (one Buy, two Hold) with a MarketBeat consensus target of $31.25—well below the current price—while institutions own about 46.7% of the stock and recently added positions.

Arrow Financial Corporation (NASDAQ:AROW - Get Free Report) shares crossed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $32.04 and traded as high as $37.29. Arrow Financial shares last traded at $36.31, with a volume of 108,988 shares.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on AROW shares. Hovde Group increased their target price on shares of Arrow Financial from $33.50 to $34.50 and gave the company a "market perform" rating in a research report on Monday, February 2nd. Weiss Ratings upgraded shares of Arrow Financial from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Monday, March 9th. Finally, Wall Street Zen raised shares of Arrow Financial from a "hold" rating to a "buy" rating in a research note on Saturday, March 7th. One research analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $31.25.

Arrow Financial Stock Performance

The company has a debt-to-equity ratio of 0.06, a quick ratio of 0.92 and a current ratio of 0.92. The firm's 50-day moving average price is $34.21 and its two-hundred day moving average price is $32.04. The stock has a market cap of $599.55 million, a price-to-earnings ratio of 13.70 and a beta of 0.78.

Arrow Financial (NASDAQ:AROW - Get Free Report) last released its quarterly earnings data on Thursday, January 29th. The financial services provider reported $0.85 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.81 by $0.04. The firm had revenue of $43.65 million during the quarter, compared to analysts' expectations of $43.40 million. Arrow Financial had a net margin of 18.12% and a return on equity of 10.77%.

Arrow Financial Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, February 25th. Stockholders of record on Wednesday, February 11th were issued a dividend of $0.30 per share. The ex-dividend date was Wednesday, February 11th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 3.3%. This is an increase from Arrow Financial's previous quarterly dividend of $0.29. Arrow Financial's payout ratio is 45.28%.

Institutional Investors Weigh In On Arrow Financial

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Segall Bryant & Hamill LLC acquired a new stake in shares of Arrow Financial during the 4th quarter worth about $2,175,000. SummerHaven Investment Management LLC acquired a new position in Arrow Financial in the third quarter valued at about $871,000. Millennium Management LLC purchased a new position in Arrow Financial during the third quarter worth about $834,000. Rhino Investment Partners Inc boosted its stake in Arrow Financial by 13.9% during the third quarter. Rhino Investment Partners Inc now owns 227,804 shares of the financial services provider's stock worth $6,447,000 after buying an additional 27,856 shares during the period. Finally, Martingale Asset Management L P increased its position in shares of Arrow Financial by 114.3% during the fourth quarter. Martingale Asset Management L P now owns 48,909 shares of the financial services provider's stock valued at $1,536,000 after acquiring an additional 26,082 shares during the last quarter. Hedge funds and other institutional investors own 46.71% of the company's stock.

About Arrow Financial

Arrow Financial Corporation is a bank holding company headquartered in Glens Falls, New York, that conducts its primary operations through its subsidiary, Glens Falls National Bank & Trust Company. The company provides a comprehensive suite of retail and commercial banking services, including checking and savings accounts, consumer and commercial lending, mortgage financing, and cash management solutions. Through its branch network, Arrow Financial serves individuals, small- and medium-sized businesses, and nonprofit organizations across the Adirondack region, Upper Hudson Valley, Mohawk Valley and parts of Central New York.

In addition to traditional banking, Arrow Financial has developed a robust wealth management and trust services division.

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