CB Financial Services (NASDAQ:CBFV) Issues Quarterly Earnings Results, Hits Expectations

Key Points

• EPS met expectations: CB Financial Services reported Q earnings of $0.72 per share, matching the consensus, while revenue of $14.82 million fell short of the $15.50 million estimate.
• Dividend hiked but may be risky: The quarterly dividend was raised to $0.28 ($1.12 annualized) for a 3.2% yield, yet the dividend payout ratio is about 123%, which could raise sustainability concerns.
• Mixed market view and insider activity: Analysts are split (two Buys, one Hold, one Sell) with a consensus target of $41, insiders have sold shares, and the stock trades near $35 with a P/E of ~38.5 and market cap around $177M.

CB Financial Services (NASDAQ:CBFV - Get Free Report) posted its earnings results on Wednesday. The bank reported $0.72 earnings per share for the quarter, hitting the consensus estimate of $0.72, FiscalAI reports. The firm had revenue of $14.82 million during the quarter, compared to analysts' expectations of $15.50 million. CB Financial Services had a return on equity of 9.49% and a net margin of 6.09%.

CB Financial Services Stock Performance

CBFV traded up $0.31 during trading on Wednesday, hitting $35.00. 3,007 shares of the stock were exchanged, compared to its average volume of 4,897. The firm has a market capitalization of $177.45 million, a P/E ratio of 38.46 and a beta of 0.27. CB Financial Services has a 1-year low of $27.11 and a 1-year high of $37.75. The stock has a fifty day moving average price of $34.89 and a two-hundred day moving average price of $34.61. The company has a quick ratio of 0.87, a current ratio of 0.87 and a debt-to-equity ratio of 0.22.

CB Financial Services Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, February 27th. Shareholders of record on Friday, February 13th were given a dividend of $0.28 per share. This represents a $1.12 annualized dividend and a yield of 3.2%. This is a positive change from CB Financial Services's previous quarterly dividend of $0.26. The ex-dividend date of this dividend was Friday, February 13th. CB Financial Services's dividend payout ratio is presently 123.08%.

Insider Activity at CB Financial Services

In other CB Financial Services news, Vice Chairman Charles R. Guthrie sold 1,913 shares of CB Financial Services stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $37.35, for a total transaction of $71,450.55. Following the transaction, the insider owned 16,796 shares of the company's stock, valued at $627,330.60. The trade was a 10.23% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Stephen Cobain sold 1,792 shares of CB Financial Services stock in a transaction that occurred on Thursday, March 5th. The stock was sold at an average price of $34.58, for a total value of $61,967.36. Following the transaction, the insider directly owned 4,313 shares in the company, valued at approximately $149,143.54. This trade represents a 29.35% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 9.40% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its position in CB Financial Services by 158.5% during the third quarter. Vanguard Group Inc. now owns 246,068 shares of the bank's stock worth $8,172,000 after buying an additional 150,873 shares during the period. The Manufacturers Life Insurance Company increased its holdings in shares of CB Financial Services by 1.2% in the second quarter. The Manufacturers Life Insurance Company now owns 166,918 shares of the bank's stock valued at $4,757,000 after purchasing an additional 2,044 shares during the period. Geode Capital Management LLC boosted its stake in shares of CB Financial Services by 112.2% in the second quarter. Geode Capital Management LLC now owns 107,608 shares of the bank's stock valued at $3,067,000 after buying an additional 56,889 shares in the last quarter. Bridgeway Capital Management LLC boosted its stake in shares of CB Financial Services by 3.5% in the third quarter. Bridgeway Capital Management LLC now owns 67,840 shares of the bank's stock valued at $2,253,000 after buying an additional 2,303 shares in the last quarter. Finally, State Street Corp boosted its stake in shares of CB Financial Services by 7.0% in the fourth quarter. State Street Corp now owns 50,678 shares of the bank's stock valued at $1,767,000 after buying an additional 3,331 shares in the last quarter. Institutional investors and hedge funds own 33.06% of the company's stock.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on the company. DA Davidson assumed coverage on CB Financial Services in a research note on Wednesday, February 25th. They set a "buy" rating and a $43.00 target price for the company. Weiss Ratings restated a "hold (c)" rating on shares of CB Financial Services in a research note on Friday, March 27th. Keefe, Bruyette & Woods decreased their target price on CB Financial Services from $40.00 to $39.00 and set an "outperform" rating for the company in a research note on Thursday, January 29th. Finally, Zacks Research cut CB Financial Services from a "hold" rating to a "strong sell" rating in a research note on Monday, April 13th. Two investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $41.00.

CB Financial Services Company Profile

CB Financial Services, Inc is a bank holding company headquartered in the Kansas City metropolitan area. Through its subsidiary, Community Bank & Trust, F.S.B., the company provides a comprehensive suite of retail and commercial banking services. Its primary focus is meeting the financial needs of individuals, small businesses and agricultural clients within its regional footprint.

The company's deposit product lineup includes checking accounts, savings accounts, money market accounts and certificates of deposit.

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