Alerus Financial (NASDAQ:ALRS) Plans Quarterly Dividend of $0.22

Key Points

• Alerus Financial declared a quarterly dividend of $0.22 per share, payable October 9 to shareholders of record on September 25. The dividend implies an annualized payout of $0.88 and a 2.6% yield.
• The company has increased its dividend for 25 consecutive years, with a current payout ratio of 37.3%; analysts expect future earnings to comfortably cover the dividend.
• Alerus recently beat quarterly earnings and revenue estimates, but analyst sentiment remains cautious: six analysts rate the stock “Hold” and one rates it “Buy,” with a consensus price target of $35.50.

Alerus Financial (NASDAQ:ALRS - Get Free Report) announced a quarterly dividend on Thursday, August 27th. Investors of record on Friday, September 25th will be given a dividend of 0.22 per share on Friday, October 9th. This represents a c) annualized dividend and a dividend yield of 2.6%. The ex-dividend date is Friday, September 25th.

Alerus Financial has raised its dividend by an average of 0.1%per year over the last three years and has increased its dividend annually for the last 25 consecutive years. Alerus Financial has a dividend payout ratio of 37.3% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Alerus Financial to earn $2.82 per share next year, which means the company should continue to be able to cover its $0.88 annual dividend with an expected future payout ratio of 31.2%.

Alerus Financial Stock Performance

NASDAQ ALRS opened at $33.24 on Friday. The firm's 50 day simple moving average is $32.26 and its 200 day simple moving average is $28.17. The firm has a market capitalization of $827.68 million, a price-to-earnings ratio of 31.36 and a beta of 0.68. The company has a current ratio of 0.90, a quick ratio of 0.89 and a debt-to-equity ratio of 0.10. Alerus Financial has a 1 year low of $20.31 and a 1 year high of $34.40.

Alerus Financial (NASDAQ:ALRS - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The company reported $0.80 EPS for the quarter, beating the consensus estimate of $0.77 by $0.03. The business had revenue of $80.00 million during the quarter, compared to the consensus estimate of $76.99 million. Alerus Financial had a net margin of 6.87% and a return on equity of 14.41%. As a group, research analysts expect that Alerus Financial will post 3.03 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

A number of research firms have recently commented on ALRS. Weiss Ratings cut Alerus Financial from a "buy (b-)" rating to a "hold (c+)" rating in a report on Monday, August 17th. Piper Sandler raised their price objective on Alerus Financial from $32.00 to $37.00 and gave the company a "neutral" rating in a research note on Friday, July 31st. Raymond James Financial reiterated an "outperform" rating and issued a $37.00 target price on shares of Alerus Financial in a research report on Monday, August 3rd. Keefe, Bruyette & Woods boosted their target price on Alerus Financial from $29.00 to $32.00 and gave the stock a "market perform" rating in a research note on Friday, July 31st. Finally, Zacks Research cut shares of Alerus Financial from a "strong-buy" rating to a "hold" rating in a report on Thursday, August 20th. One investment analyst has rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $35.50.

About Alerus Financial

Alerus Financial Corporation NASDAQ: ALRS is a diversified financial services company headquartered in Grand Forks, North Dakota. The firm provides a full range of commercial and consumer banking products, including deposit accounts, lending solutions and treasury management services for individuals, small businesses and larger corporate clients. Through its community banking network, Alerus emphasizes local decision-making and personalized service to meet the needs of its varied client base.

In addition to traditional banking offerings, Alerus operates a national mortgage origination and servicing platform that delivers home purchase and refinance loans.

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