Shore Bancshares Inc (NASDAQ:SHBI) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Shore Bancshares received a consensus “Moderate Buy” rating from five analysts, with three buys and two holds. The average 12-month price target is $26.00, above the reported share price of $23.52.
• The bank exceeded quarterly expectations, reporting $0.60 in earnings per share versus the $0.50 consensus estimate and $61.75 million in revenue versus $60.42 million expected.
• Shore Bancshares declared a quarterly dividend of $0.14 per share, representing a 2.4% yield, and authorized a $30 million share-repurchase program covering up to 4.5% of outstanding shares.

Shore Bancshares Inc (NASDAQ:SHBI - Get Free Report) has been assigned a consensus rating of "Moderate Buy" from the five research firms that are currently covering the firm, Marketbeat reports. Two research analysts have rated the stock with a hold recommendation and three have given a buy recommendation to the company. The average 1 year price target among brokerages that have covered the stock in the last year is $26.00.

Several brokerages have weighed in on SHBI. Piper Sandler raised their price objective on Shore Bancshares from $24.00 to $26.50 and gave the company an "overweight" rating in a research note on Monday, July 27th. Zacks Research downgraded Shore Bancshares from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, June 30th. Keefe, Bruyette & Woods boosted their target price on shares of Shore Bancshares from $22.00 to $25.00 and gave the company a "market perform" rating in a report on Tuesday, July 28th. Hovde Group raised their price objective on shares of Shore Bancshares from $23.50 to $26.50 and gave the company an "outperform" rating in a research report on Monday, July 27th. Finally, Weiss Ratings restated a "buy (b)" rating on shares of Shore Bancshares in a research note on Friday, July 17th.

Hedge Funds Weigh In On Shore Bancshares

A number of large investors have recently added to or reduced their stakes in the business. PNC Financial Services Group Inc. increased its position in shares of Shore Bancshares by 20.1% in the first quarter. PNC Financial Services Group Inc. now owns 4,448 shares of the bank's stock valued at $83,000 after acquiring an additional 743 shares during the period. Allworth Financial LP grew its stake in shares of Shore Bancshares by 82.7% in the second quarter. Allworth Financial LP now owns 1,769 shares of the bank's stock worth $41,000 after purchasing an additional 801 shares during the last quarter. Royal Bank of Canada increased its holdings in Shore Bancshares by 4.2% during the 1st quarter. Royal Bank of Canada now owns 28,101 shares of the bank's stock valued at $525,000 after purchasing an additional 1,139 shares during the period. Integrated Wealth Concepts LLC purchased a new stake in Shore Bancshares in the second quarter worth $34,000. Finally, IFP Advisors Inc increased its position in shares of Shore Bancshares by 51.1% during the second quarter. IFP Advisors Inc now owns 6,116 shares of the bank's stock valued at $140,000 after buying an additional 2,068 shares during the period. Hedge funds and other institutional investors own 59.76% of the company's stock.

Shore Bancshares Stock Up 0.3%

Shore Bancshares stock opened at $23.52 on Tuesday. The firm has a market capitalization of $784.86 million, a price-to-earnings ratio of 11.88 and a beta of 0.80. The firm's fifty day moving average price is $23.43 and its two-hundred day moving average price is $21.15. Shore Bancshares has a 1-year low of $14.93 and a 1-year high of $24.89. The company has a current ratio of 0.95, a quick ratio of 0.94 and a debt-to-equity ratio of 0.14.

Shore Bancshares (NASDAQ:SHBI - Get Free Report) last posted its earnings results on Thursday, July 23rd. The bank reported $0.60 earnings per share for the quarter, topping analysts' consensus estimates of $0.50 by $0.10. The company had revenue of $61.75 million for the quarter, compared to analyst estimates of $60.42 million. Shore Bancshares had a net margin of 19.15% and a return on equity of 12.11%. On average, equities research analysts predict that Shore Bancshares will post 2.26 earnings per share for the current fiscal year.

Shore Bancshares Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Wednesday, September 2nd will be given a dividend of $0.14 per share. The ex-dividend date is Wednesday, September 2nd. This represents a $0.56 annualized dividend and a dividend yield of 2.4%. Shore Bancshares's dividend payout ratio is 28.28%.

Shore Bancshares declared that its Board of Directors has authorized a share buyback plan on Thursday, May 21st that permits the company to buyback $30.00 million in outstanding shares. This buyback authorization permits the bank to repurchase up to 4.5% of its shares through open market purchases. Shares buyback plans are often an indication that the company's management believes its stock is undervalued.

Shore Bancshares Company Profile

Shore Bancshares, Inc is a bank holding company headquartered in Easton, Maryland. Through its principal banking subsidiary, Shore United Bank, the company provides banking and financial services to individuals, businesses, and organizations.

Shore United Bank offers deposit accounts, commercial and residential real estate loans, commercial lending, consumer loans, home equity financing, and other credit products. Its services also include online and mobile banking, treasury management, wealth management, investment services, and insurance-related products.

The company has historically focused on communities across Maryland's Eastern Shore and other parts of Maryland, with a presence extending into the Baltimore and Annapolis areas following its combination with Severn Bancorp.

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