Burke & Herbert Financial Services (NASDAQ:BHRB) Posts Quarterly Earnings Results, Beats Estimates 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) released its earnings results on Thursday. The company reported $1.97 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.85 by $0.12, Zacks reports. Burke & Herbert Financial Services had a net margin of 20.93% and a return on equity of 15.59%. The business had revenue of $87.11 million for the quarter, compared to analyst estimates of $86.06 million.

Burke & Herbert Financial Services Stock Performance

NASDAQ:BHRB traded down $1.69 on Wednesday, reaching $58.78. 61,390 shares of the company's stock were exchanged, compared to its average volume of 54,810. The stock has a fifty day simple moving average of $59.87 and a 200-day simple moving average of $58.82. The firm has a market cap of $882.29 million, a price-to-earnings ratio of 8.53 and a beta of 1.21. Burke & Herbert Financial Services has a 52 week low of $47.57 and a 52 week high of $75.32. 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 Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 2nd. Stockholders of record on Friday, August 15th will be paid a dividend of $0.55 per share. The ex-dividend date of this dividend is Friday, August 15th. This represents a $2.20 annualized dividend and a dividend yield of 3.74%. Burke & Herbert Financial Services's payout ratio is 31.93%.

Burke & Herbert Financial Services declared that its Board of Directors has authorized a share repurchase program on Friday, April 25th that allows the company to buyback $50.00 million in shares. This buyback authorization allows the company to buy up to 6.5% of its stock through open market purchases. Stock buyback programs are typically a sign that the company's leadership believes its shares are undervalued.

Insiders Place Their Bets

In other news, Director Jose David Riojas purchased 500 shares of the company's stock in a transaction on Thursday, June 5th. The stock was purchased at an average price of $55.85 per share, with a total value of $27,925.00. Following the completion of the purchase, the director directly 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 Securities & Exchange Commission, which is available through this link. Also, Director Samuel Laing Hinson III bought 4,802 shares of the business's stock in a transaction on Friday, May 23rd. The stock was purchased at an average cost of $55.00 per share, with a total value of $264,110.00. Following the purchase, the director owned 33,602 shares of the company's stock, valued at $1,848,110. This represents a 16.67% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders purchased a total of 6,302 shares of company stock worth $348,535 in the last quarter. 10.92% of the stock is owned by company insiders.

Institutional Investors Weigh In On Burke & Herbert Financial Services

A number of hedge funds and other institutional investors have recently modified their holdings of BHRB. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in shares of Burke & Herbert Financial Services by 4.1% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 8,030 shares of the company's stock valued at $451,000 after acquiring an additional 319 shares during the last quarter. Goldman Sachs Group Inc. lifted 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 purchasing an additional 10,117 shares during the last quarter. Finally, Jane Street Group LLC bought a new stake in Burke & Herbert Financial Services during the 1st quarter valued at $1,287,000.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on the stock. Janney Montgomery Scott began coverage on shares of Burke & Herbert Financial Services in a report on Thursday, July 10th. They set a "buy" rating and a $70.00 price objective on the stock. Wall Street Zen downgraded Burke & Herbert Financial Services from a "buy" rating to a "hold" rating in a research note on Saturday. Keefe, Bruyette & Woods upped their target price on shares of Burke & Herbert Financial Services from $70.00 to $72.00 and gave the stock an "outperform" rating in a research note on Monday. Finally, DA Davidson upped their target price on Burke & Herbert Financial Services from $69.00 to $73.00 and gave the company a "buy" rating in a report on Monday.

About Burke & Herbert Financial Services

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.