Community Trust Bancorp (NASDAQ:CTBI) Shares Gap Down Following Weak Earnings

Key Points

• Community Trust Bancorp's stock price fell sharply from $56.14 to $53.93 after the company reported weaker than expected quarterly earnings with an EPS of $1.32, missing forecasts by $0.06.
• The company has increased its quarterly dividend to $0.53 per share, up from $0.47, reflecting a positive change despite the earnings miss.
• Analysts maintain a generally positive outlook on the stock, with three firms rating it a "Buy" and target prices averaging $64.50.

Community Trust Bancorp, Inc. (NASDAQ:CTBI - Get Free Report)'s stock price gapped down before the market opened on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $56.14, but opened at $53.93. Community Trust Bancorp shares last traded at $54.88, with a volume of 4,358 shares.

The financial services provider reported $1.32 EPS for the quarter, missing the consensus estimate of $1.38 by ($0.06). Community Trust Bancorp had a net margin of 23.33% and a return on equity of 11.77%. The firm had revenue of $71.50 million during the quarter, compared to analyst estimates of $71.85 million.

Community Trust Bancorp Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, October 1st. Stockholders of record on Monday, September 15th were issued a dividend of $0.53 per share. The ex-dividend date of this dividend was Monday, September 15th. This is a positive change from Community Trust Bancorp's previous quarterly dividend of $0.47. This represents a $2.12 annualized dividend and a dividend yield of 4.0%. Community Trust Bancorp's dividend payout ratio (DPR) is 41.73%.

Analysts Set New Price Targets

A number of research firms recently commented on CTBI. Weiss Ratings restated a "buy (b)" rating on shares of Community Trust Bancorp in a research report on Wednesday, October 8th. Piper Sandler began coverage on Community Trust Bancorp in a research note on Monday, August 18th. They issued an "overweight" rating and a $66.00 price objective on the stock. Finally, Raymond James Financial reaffirmed an "outperform" rating and issued a $63.00 price target (up from $58.00) on shares of Community Trust Bancorp in a report on Thursday, July 17th. Three analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the stock has an average rating of "Buy" and an average target price of $64.50.

Insiders Place Their Bets

In other Community Trust Bancorp news, EVP Andy D. Waters sold 918 shares of the company's stock in a transaction on Monday, August 18th. The shares were sold at an average price of $56.18, for a total transaction of $51,573.24. Following the completion of the sale, the executive vice president owned 632 shares in the company, valued at approximately $35,505.76. The trade was a 59.23% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 2.30% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Community Trust Bancorp

A number of institutional investors have recently made changes to their positions in the stock. PNC Financial Services Group Inc. boosted its holdings in Community Trust Bancorp by 39.8% during the first quarter. PNC Financial Services Group Inc. now owns 801 shares of the financial services provider's stock worth $40,000 after buying an additional 228 shares during the last quarter. Farther Finance Advisors LLC acquired a new stake in shares of Community Trust Bancorp in the 2nd quarter valued at approximately $40,000. US Bancorp DE raised its position in shares of Community Trust Bancorp by 90.2% in the 1st quarter. US Bancorp DE now owns 1,065 shares of the financial services provider's stock valued at $54,000 after acquiring an additional 505 shares during the period. Strs Ohio bought a new stake in Community Trust Bancorp in the first quarter valued at approximately $86,000. Finally, GAMMA Investing LLC increased its stake in Community Trust Bancorp by 3,898.5% in the first quarter. GAMMA Investing LLC now owns 2,719 shares of the financial services provider's stock valued at $137,000 after purchasing an additional 2,651 shares in the last quarter. 60.20% of the stock is owned by institutional investors and hedge funds.

Community Trust Bancorp Price Performance

The company has a debt-to-equity ratio of 0.08, a current ratio of 0.93 and a quick ratio of 0.93. The stock has a market cap of $972.02 million, a P/E ratio of 10.56 and a beta of 0.57. The company's 50 day simple moving average is $56.37 and its 200 day simple moving average is $53.26.

About Community Trust Bancorp

Community Trust Bancorp, Inc operates as the bank holding company for Community Trust Bank, Inc that engages in the provision of commercial and personal banking, and trust and wealth management services to small and mid-sized communities in eastern, northeastern, central, and south-central Kentucky, as well as southern West Virginia, and northeastern Tennessee.

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