Columbia Banking System (NASDAQ:COLB) Trading 5.1% Higher on Better-Than-Expected Earnings

Key Points

• Columbia Banking System's share price rose by 5.1% following the announcement of better-than-expected quarterly earnings, reporting an EPS of $0.76 compared to the estimated $0.66.
• The company had a quarterly revenue of $511.55 million, surpassing analyst expectations of $492.00 million, and reported a net margin of 16.85%.
• Columbia Banking System declared a quarterly dividend of $0.36 per share, yielding 5.90% with a payout ratio of 61.02%.
• Multiple analysts have adjusted their target prices for the stock, with most rating it as a hold, reflecting ongoing cautious sentiment in the market.

Columbia Banking System, Inc. (NASDAQ:COLB - Get Free Report)'s stock price rose 5.1% during mid-day trading on Friday after the company announced better than expected quarterly earnings. The company traded as high as $24.33 and last traded at $24.55. Approximately 1,823,792 shares traded hands during trading, a decline of 4% from the average daily volume of 1,898,391 shares. The stock had previously closed at $23.35.

The financial services provider reported $0.76 EPS for the quarter, beating analysts' consensus estimates of $0.66 by $0.10. The firm had revenue of $511.55 million for the quarter, compared to analyst estimates of $492.00 million. Columbia Banking System had a return on equity of 11.31% and a net margin of 17.98%. Columbia Banking System's revenue for the quarter was up 8.2% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.67 earnings per share.

Columbia Banking System Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, June 16th. Stockholders of record on Friday, May 30th were paid a dividend of $0.36 per share. This represents a $1.44 annualized dividend and a dividend yield of 5.92%. The ex-dividend date of this dividend was Friday, May 30th. Columbia Banking System's payout ratio is 57.14%.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on COLB. Piper Sandler upped their target price on Columbia Banking System from $30.00 to $32.00 and gave the stock an "overweight" rating in a research note on Monday. Royal Bank Of Canada reduced their target price on Columbia Banking System from $32.00 to $27.00 and set a "sector perform" rating for the company in a research note on Thursday, April 24th. Wells Fargo & Company increased their price objective on Columbia Banking System from $27.00 to $28.00 and gave the company an "equal weight" rating in a research note on Tuesday. Wall Street Zen started coverage on Columbia Banking System in a research note on Thursday, May 22nd. They issued a "hold" rating for the company. Finally, Citigroup reissued a "neutral" rating and issued a $26.00 price objective (up from $22.00) on shares of Columbia Banking System in a research note on Monday. Twelve investment analysts have rated the stock with a hold rating and three have issued a buy rating to the company's stock. Based on data from MarketBeat.com, Columbia Banking System has an average rating of "Hold" and an average price target of $28.93.

Hedge Funds Weigh In On Columbia Banking System

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Aster Capital Management DIFC Ltd purchased a new stake in Columbia Banking System during the fourth quarter worth approximately $29,000. Geneos Wealth Management Inc. grew its holdings in Columbia Banking System by 194.6% during the first quarter. Geneos Wealth Management Inc. now owns 1,202 shares of the financial services provider's stock worth $30,000 after acquiring an additional 794 shares during the period. BI Asset Management Fondsmaeglerselskab A S acquired a new stake in Columbia Banking System in the first quarter valued at $37,000. UMB Bank n.a. boosted its stake in shares of Columbia Banking System by 141.3% during the first quarter. UMB Bank n.a. now owns 1,636 shares of the financial services provider's stock valued at $41,000 after acquiring an additional 958 shares during the last quarter. Finally, Meeder Asset Management Inc. acquired a new stake in shares of Columbia Banking System during the fourth quarter valued at $42,000. 92.53% of the stock is owned by institutional investors and hedge funds.

Columbia Banking System Stock Down 0.9%

The business has a 50 day moving average of $23.84 and a 200 day moving average of $24.71. The firm has a market cap of $5.12 billion, a price-to-earnings ratio of 9.65 and a beta of 0.62.

About Columbia Banking System

Columbia Banking System, Inc operates as the holding company of Umpqua Bank that provides banking, private banking, mortgage, and other financial services in the United States. The company offers deposit products, including business, non-interest bearing checking, interest-bearing checking and savings, money market, and certificate of deposit accounts; and insured cash sweep and other investment sweep solutions.