Orrstown Financial Services Inc (NASDAQ:ORRF) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Analyst sentiment is moderately positive: Orrstown Financial Services received three buy ratings and three hold ratings, with an average 12-month price target of $44.33 versus a reported share price of $42.00.
• Quarterly earnings exceeded expectations: The bank reported $1.09 in EPS, beating the $1.03 consensus estimate, although revenue of $62.67 million fell short of the $64.10 million forecast.
• Institutional ownership and shareholder returns remain notable: Institutional investors and hedge funds own 44.27% of the stock, while the company maintains a quarterly dividend of $0.30, equivalent to a 2.9% annualized yield.

Shares of Orrstown Financial Services Inc (NASDAQ:ORRF - Get Free Report) have been assigned a consensus recommendation of "Moderate Buy" from the six research firms that are currently covering the company, MarketBeat reports. Three investment analysts have rated the stock with a hold rating and three have given a buy rating to the company. The average 1 year price objective among brokers that have issued a report on the stock in the last year is $44.3333.

A number of research firms recently issued reports on ORRF. Hovde Group lifted their target price on Orrstown Financial Services from $42.00 to $46.00 and gave the stock an "outperform" rating in a report on Monday, July 27th. Weiss Ratings reissued a "buy (b)" rating on shares of Orrstown Financial Services in a report on Tuesday, July 7th. Keefe, Bruyette & Woods raised their price objective on shares of Orrstown Financial Services from $44.00 to $46.00 and gave the company an "outperform" rating in a research report on Thursday, July 23rd. Raymond James Financial began coverage on shares of Orrstown Financial Services in a research note on Thursday, July 9th. They issued a "market perform" rating on the stock. Finally, DA Davidson reiterated a "neutral" rating and issued a $41.00 target price on shares of Orrstown Financial Services in a report on Wednesday, July 22nd.

Insider Activity

In other Orrstown Financial Services news, EVP Amy Doll sold 3,002 shares of the company's stock in a transaction on Monday, July 27th. The stock was sold at an average price of $41.61, for a total value of $124,913.22. Following the transaction, the executive vice president owned 25,669 shares of the company's stock, valued at approximately $1,068,087.09. This represents a 10.47% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 4.30% of the company's stock.

Hedge Funds Weigh In On Orrstown Financial Services

A number of hedge funds have recently modified their holdings of the stock. Sequoia Financial Advisors LLC acquired a new stake in shares of Orrstown Financial Services during the second quarter worth $396,000. Squarepoint Ops LLC acquired a new position in shares of Orrstown Financial Services in the 2nd quarter valued at $276,000. Arizona State Retirement System purchased a new position in Orrstown Financial Services in the 2nd quarter worth about $210,000. Empowered Funds LLC purchased a new position in Orrstown Financial Services in the 2nd quarter worth about $1,810,000. Finally, Bank of America Corp DE acquired a new stake in Orrstown Financial Services during the 2nd quarter worth about $4,735,000. 44.27% of the stock is currently owned by institutional investors and hedge funds.

Orrstown Financial Services Stock Performance

Shares of NASDAQ ORRF opened at $42.00 on Thursday. Orrstown Financial Services has a 1 year low of $31.87 and a 1 year high of $43.81. The firm has a market cap of $826.14 million, a P/E ratio of 9.44 and a beta of 0.69. The stock has a fifty day moving average price of $42.25 and a two-hundred day moving average price of $39.03. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.87 and a current ratio of 0.87.

Orrstown Financial Services (NASDAQ:ORRF - Get Free Report) last posted its quarterly earnings data on Wednesday, July 22nd. The bank reported $1.09 EPS for the quarter, topping analysts' consensus estimates of $1.03 by $0.06. The company had revenue of $62.67 million for the quarter, compared to the consensus estimate of $64.10 million. Orrstown Financial Services had a return on equity of 14.46% and a net margin of 24.00%. Research analysts forecast that Orrstown Financial Services will post 4.41 EPS for the current fiscal year.

Orrstown Financial Services Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, August 11th. Shareholders of record on Tuesday, August 4th were given a $0.30 dividend. The ex-dividend date was Tuesday, August 4th. This represents a $1.20 annualized dividend and a yield of 2.9%. Orrstown Financial Services's payout ratio is 26.97%.

About Orrstown Financial Services

Orrstown Financial Services Corporation NASDAQ: ORRF is a bank holding company headquartered in Shippensburg, Pennsylvania. Through its principal subsidiary, Orrstown Bank, the company provides banking and financial services to individuals, families, businesses, agricultural customers and nonprofit organizations.

Orrstown Bank offers deposit accounts, consumer and commercial loans, residential mortgage lending, agricultural financing, treasury management and other business banking services.

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