Dime Community Bancshares, Inc. (NASDAQ:DCOM) Stock Has Consensus Target Price of $42.25 According to Brokerages

Key Points

• Analyst sentiment is moderately bullish: Six brokerages rate Dime Community Bancshares a consensus “Moderate Buy,” with four buys and two holds. The average 12-month price target is $42.25, while Piper Sandler set a $47 target.
• Third-quarter results exceeded expectations: DCOM reported $0.91 in EPS and $135.35 million in revenue, surpassing analyst estimates, with year-over-year EPS growth and a 15.15% net margin. The company also agreed to acquire ES Bancshares to expand its Staten Island presence.
• The stock and shareholder activity remain in focus: Shares recently traded at $40.53, near their 52-week high, while the company declared a quarterly dividend of $0.25, equivalent to a 2.5% annual yield. Insiders sold $5.5 million of stock over the past 90 days, and institutional investors own 75.27% of shares.

Dime Community Bancshares, Inc. (NASDAQ:DCOM - Get Free Report) has been given an average recommendation of "Moderate Buy" by the six brokerages that are presently covering the stock, MarketBeat reports. Two analysts have rated the stock with a hold recommendation and four have assigned a buy recommendation to the company. The average 12 month price objective among brokerages that have issued ratings on the stock in the last year is $42.25.

Separately, Piper Sandler reiterated an "overweight" rating and set a $47.00 target price on shares of Dime Community Bancshares in a report on Wednesday.

Insider Activity at Dime Community Bancshares

In other news, Director Raymond A. Nielsen sold 1,800 shares of Dime Community Bancshares stock in a transaction that occurred on Thursday, August 6th. The shares were sold at an average price of $41.73, for a total transaction of $75,114.00. Following the sale, the director owned 32,400 shares in the company, valued at $1,352,052. This trade represents a 5.26% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Basswood Capital Management, L sold 7,170 shares of the business's stock in a transaction on Thursday, August 13th. The stock was sold at an average price of $41.40, for a total transaction of $296,838.00. Following the transaction, the director directly owned 6,099 shares in the company, valued at approximately $252,498.60. The trade was a 54.04% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 134,595 shares of company stock valued at $5,506,229 in the last ninety days. 7.40% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Dime Community Bancshares

A number of institutional investors have recently added to or reduced their stakes in DCOM. Bank of America Corp DE acquired a new position in shares of Dime Community Bancshares in the 2nd quarter valued at approximately $9,631,000. BlackRock Inc. acquired a new stake in shares of Dime Community Bancshares during the second quarter worth approximately $251,937,000. Legal & General Group Plc acquired a new stake in shares of Dime Community Bancshares during the second quarter worth approximately $3,904,000. Deutsche Bank AG acquired a new stake in shares of Dime Community Bancshares during the second quarter worth approximately $1,782,000. Finally, Empowered Funds LLC bought a new stake in shares of Dime Community Bancshares in the second quarter worth $8,149,000. Institutional investors and hedge funds own 75.27% of the company's stock.

Trending Headlines about Dime Community Bancshares

Here are the key news stories impacting Dime Community Bancshares this week:

• Positive Sentiment: Q3 earnings exceeded expectations: DCOM reported earnings of $0.91 per share, above analyst estimates of approximately $0.86-$0.87 and up from $0.59-$0.61 a year earlier. Revenue reached $135.35 million, also topping the $131.16 million consensus estimate. Dime Community Bancshares Q3 earnings report
• Positive Sentiment: Management highlighted profitable growth: The Q3 earnings call reinforced the bank’s improving earnings trajectory, supported by year-over-year EPS growth and a 15.15% net margin. Return on equity was 9.12%, providing additional evidence of solid profitability. Dime Community Bancshares earnings call summary
• Positive Sentiment: Expansion in Staten Island: Dime Commercial Bancshares agreed to acquire ES Bancshares, Inc., a deal intended to strengthen DCOM’s Staten Island presence and enhance its franchise value. The transaction could expand the company’s local deposit and lending platform. Dime Community Bancshares acquisition announcement
• Neutral Sentiment: Investors will monitor execution: While the acquisition offers growth potential, its eventual effect on earnings will depend on transaction completion, integration costs and the ability to realize expected franchise and operating benefits.

Dime Community Bancshares Stock Down 1.2%

NASDAQ DCOM traded down $0.47 during trading hours on Wednesday, hitting $40.53. The company had a trading volume of 33,613 shares, compared to its average volume of 311,533. The firm's 50 day moving average is $40.08 and its 200 day moving average is $38.89. The company has a debt-to-equity ratio of 0.57, a current ratio of 1.02 and a quick ratio of 1.02. Dime Community Bancshares has a fifty-two week low of $25.63 and a fifty-two week high of $41.97. The company has a market capitalization of $1.79 billion, a price-to-earnings ratio of 17.18 and a beta of 1.01.

Dime Community Bancshares (NASDAQ:DCOM - Get Free Report) last issued its quarterly earnings data on Tuesday, October 20th. The savings and loans company reported $0.91 EPS for the quarter, topping analysts' consensus estimates of $0.86 by $0.05. Dime Community Bancshares had a return on equity of 9.12% and a net margin of 15.15%. The company had revenue of $135.35 million for the quarter, compared to analysts' expectations of $131.16 million. During the same quarter in the previous year, the firm posted $0.59 earnings per share. Sell-side analysts anticipate that Dime Community Bancshares will post 3.06 earnings per share for the current fiscal year.

Dime Community Bancshares Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, October 23rd. Shareholders of record on Friday, October 16th will be issued a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date is Friday, October 16th. Dime Community Bancshares's dividend payout ratio is currently 36.10%.

About Dime Community Bancshares

Dime Community Bancshares, Inc is the bank holding company for Dime Community Bank, a full-service commercial bank serving businesses, individuals and local communities in the New York metropolitan area. The company's primary markets include Long Island and New York City, with banking offices across Brooklyn, Queens, Manhattan, Nassau County and Suffolk County.

Dime Community Bank provides commercial and residential real estate lending, commercial and industrial loans, construction financing, residential mortgages and consumer loans.

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