Brean Capital Initiates Coverage on OptimumBank (NASDAQ:OPHC)

Key Points

• Brean Capital initiated coverage on OptimumBank with a "Buy" rating and a $7.00 price target (implying ~29% upside), and Alliance Global Partners also started coverage with a "Buy" and $6.50 target, leaving a consensus target of $6.75.
• OptimumBank shares opened around $5.41, with a market cap of about $65.8 million and a low P/E of 4.1, suggesting the stock is trading at a relatively low valuation.
• Insider Timothy Terry sold 39,304 shares (disclosed) and insiders own roughly 18.7% of the stock, while institutional investors including Renaissance, Susquehanna, AllianceBernstein and Vanguard have recently increased positions.

Brean Capital assumed coverage on shares of OptimumBank (NASDAQ:OPHC - Get Free Report) in a research report issued to clients and investors on Monday. The firm set a "buy" rating and a $7.00 price target on the bank's stock. Brean Capital's price objective points to a potential upside of 29.39% from the company's previous close.

Separately, Alliance Global Partners assumed coverage on shares of OptimumBank in a report on Tuesday, April 7th. They set a "buy" rating and a $6.50 price target for the company. Two analysts have rated the stock with a Buy rating, Based on data from MarketBeat, OptimumBank currently has an average rating of "Buy" and a consensus target price of $6.75.

OptimumBank Stock Performance

OPHC opened at $5.41 on Monday. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.12 and a quick ratio of 1.12. The stock has a market cap of $65.82 million, a P/E ratio of 4.10 and a beta of 0.28. OptimumBank has a 1-year low of $3.90 and a 1-year high of $5.59. The stock's 50 day simple moving average is $5.26 and its 200 day simple moving average is $4.62.

Insider Transactions at OptimumBank

In other news, insider Timothy Terry sold 39,304 shares of the company's stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $4.73, for a total value of $185,907.92. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 18.66% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Renaissance Technologies LLC raised its holdings in OptimumBank by 16.4% in the fourth quarter. Renaissance Technologies LLC now owns 110,200 shares of the bank's stock valued at $468,000 after acquiring an additional 15,500 shares in the last quarter. Susquehanna International Group LLP grew its holdings in OptimumBank by 112.2% during the 3rd quarter. Susquehanna International Group LLP now owns 46,460 shares of the bank's stock worth $190,000 after acquiring an additional 24,569 shares in the last quarter. Alliancebernstein L.P. increased its position in shares of OptimumBank by 22.0% in the 3rd quarter. Alliancebernstein L.P. now owns 652,860 shares of the bank's stock worth $2,677,000 after purchasing an additional 117,841 shares during the last quarter. Vanguard Group Inc. increased its position in shares of OptimumBank by 22.0% in the 3rd quarter. Vanguard Group Inc. now owns 385,823 shares of the bank's stock worth $1,582,000 after purchasing an additional 69,532 shares during the last quarter. Finally, Arcus Capital Partners LLC acquired a new stake in shares of OptimumBank in the 3rd quarter valued at about $47,000. 7.43% of the stock is currently owned by hedge funds and other institutional investors.

About OptimumBank

OptimumBank, Inc NASDAQ: OPHC is a Texas-chartered commercial bank holding company headquartered in Dallas, Texas, with community banking operations primarily in Texas and South Florida. Founded in 2005, OptimumBank delivers a full suite of deposit and lending products designed to meet the needs of small-to-medium sized businesses, real estate developers, and individual consumers. Through its network of full-service branches and digital platforms, the bank focuses on relationship-driven banking and personalized service.

On the lending side, OptimumBank offers commercial real estate financing, including construction loans, permanent mortgage loans, and land acquisition facilities.

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