Burke & Herbert Financial Services (NASDAQ:BHRB) Issues Quarterly Earnings Results, Beats Expectations By $0.12 EPS

Key Points

• Burke & Herbert Financial Services reported earnings of $1.97 per share, beating estimates by $0.12 and achieving a net margin of 20.93%.
• The company declared a quarterly dividend of $0.55 per share, representing an annualized dividend yield of 3.50%, with a dividend payout ratio of 31.93%.
• Insider transactions saw significant buying activity, with directors acquiring over 5,000 shares in recent months, indicating confidence in the company's future performance.

Burke & Herbert Financial Services (NASDAQ:BHRB - Get Free Report) posted its earnings results on Thursday. The company reported $1.97 earnings per share for the quarter, topping the consensus estimate of $1.85 by $0.12, Zacks reports. Burke & Herbert Financial Services had a return on equity of 15.59% and a net margin of 20.93%. The firm had revenue of $87.11 million during the quarter, compared to analyst estimates of $86.06 million.

Burke & Herbert Financial Services Stock Performance

Shares of BHRB traded down $0.57 on Friday, reaching $62.85. 51,118 shares of the stock traded hands, compared to its average volume of 77,943. The firm has a market cap of $943.38 million, a price-to-earnings ratio of 9.12 and a beta of 1.21. The company has a debt-to-equity ratio of 0.15, a current ratio of 0.83 and a quick ratio of 0.83. Burke & Herbert Financial Services has a 12 month low of $47.57 and a 12 month high of $75.32. The stock's 50-day moving average price is $59.73 and its 200-day moving average price is $58.75.

Burke & Herbert Financial Services Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 2nd. Stockholders of record on Friday, August 15th will be issued a dividend of $0.55 per share. The ex-dividend date is Friday, August 15th. This represents a $2.20 dividend on an annualized basis and a dividend yield of 3.50%. Burke & Herbert Financial Services's dividend payout ratio (DPR) is presently 31.93%.

Analysts Set New Price Targets

BHRB has been the subject of several analyst reports. Wall Street Zen lowered Burke & Herbert Financial Services from a "buy" rating to a "hold" rating in a report on Saturday. Keefe, Bruyette & Woods cut their price target on Burke & Herbert Financial Services from $73.00 to $70.00 and set an "outperform" rating for the company in a report on Tuesday, April 29th. Finally, Janney Montgomery Scott initiated coverage on Burke & Herbert Financial Services in a report on Thursday, July 10th. They set a "buy" rating and a $70.00 price target for the company.

Burke & Herbert Financial Services announced that its board has initiated a share repurchase plan on Friday, April 25th that permits the company to buyback $50.00 million in outstanding shares. This buyback authorization permits the company to purchase up to 6.5% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's management believes its stock is undervalued.

Insider Activity

In other news, Director Jose David Riojas acquired 500 shares of the stock in a transaction dated Thursday, June 5th. The shares were acquired at an average cost of $55.85 per share, for a total transaction of $27,925.00. Following the completion of the transaction, the director owned 19,000 shares in the company, valued at approximately $1,061,150. This trade represents a 2.70% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, Director Samuel Laing Hinson III acquired 4,802 shares of the stock in a transaction dated Friday, May 23rd. The shares were purchased at an average price of $55.00 per share, for a total transaction of $264,110.00. Following the completion of the transaction, the director owned 33,602 shares of the company's stock, valued at $1,848,110. This trade represents a 16.67% increase in their position. The disclosure for this purchase can be found here. Over the last ninety days, insiders have bought 10,302 shares of company stock worth $560,535. Company insiders own 10.92% of the company's stock.

Institutional Trading of Burke & Herbert Financial Services

Institutional investors and hedge funds have recently modified their holdings of the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of Burke & Herbert Financial Services by 4.1% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 8,030 shares of the company's stock valued at $451,000 after purchasing an additional 319 shares during the period. Jane Street Group LLC bought a new stake in Burke & Herbert Financial Services in the first quarter valued at $1,287,000. Finally, Goldman Sachs Group Inc. grew its position in Burke & Herbert Financial Services by 16.4% in the first quarter. Goldman Sachs Group Inc. now owns 71,849 shares of the company's stock valued at $4,031,000 after acquiring an additional 10,117 shares during the period.

Burke & Herbert Financial Services Company Profile

Burke Herbert Financial Services Corp. is a bank holding company, which engages in the provision of banking products and financial services to small to medium-sized businesses, their owners and employees, professional corporations, non-profits, and individuals. It operates through the following loan portfolio segments: Commercial Real Estate, Owner-Occupied Commercial Real Estate, Acquisition, Construction, and Development, Commercial and Industrial, Single Family Residential (1-4 Units), and Consumer Non-Real Estate and Other.

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