Eagle Bancorp (NASDAQ:EGBN) Shares Gap Down Following Weak Earnings

Key Points

• Eagle Bancorp shares gapped down after the company reported weaker-than-expected quarterly earnings, opening at $24.10 versus the prior close of $26.94.
• The bank posted earnings of $0.23 per share, missing analyst estimates of $0.34, while revenue of $73.11 million also came in slightly below expectations.
• The company recently declared a quarterly dividend of $0.01 per share, though its annualized yield is just 0.2% and the payout ratio remains negative.

Eagle Bancorp, Inc. (NASDAQ:EGBN - Get Free Report) gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $26.94, but opened at $24.10. Eagle Bancorp shares last traded at $25.9390, with a volume of 92,843 shares traded.

The financial services provider reported $0.23 earnings per share for the quarter, missing the consensus estimate of $0.34 by ($0.11). Eagle Bancorp had a negative return on equity of 10.03% and a negative net margin of 18.65%.The company had revenue of $73.11 million during the quarter, compared to analysts' expectations of $74.41 million.

Eagle Bancorp Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, August 17th. Stockholders of record on Thursday, August 6th will be paid a $0.01 dividend. This represents a $0.04 dividend on an annualized basis and a dividend yield of 0.2%. The ex-dividend date of this dividend is Thursday, August 6th. Eagle Bancorp's dividend payout ratio is currently -1.06%.

Wall Street Analyst Weigh In

EGBN has been the topic of a number of analyst reports. Piper Sandler upped their price target on shares of Eagle Bancorp from $29.00 to $30.00 and gave the stock a "neutral" rating in a research note on Friday, June 26th. Raymond James Financial assumed coverage on shares of Eagle Bancorp in a report on Tuesday, April 14th. They issued a "strong-buy" rating and a $32.00 target price for the company. Weiss Ratings reiterated a "sell (d-)" rating on shares of Eagle Bancorp in a research note on Friday, June 5th. Finally, Zacks Research cut shares of Eagle Bancorp from a "strong-buy" rating to a "hold" rating in a report on Tuesday, May 5th. One research analyst has rated the stock with a Strong Buy rating, two have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $29.00.

Institutional Investors Weigh In On Eagle Bancorp

Several large investors have recently bought and sold shares of EGBN. Farther Finance Advisors LLC lifted its stake in Eagle Bancorp by 128.6% during the 4th quarter. Farther Finance Advisors LLC now owns 1,390 shares of the financial services provider's stock valued at $30,000 after acquiring an additional 782 shares during the period. Cassaday & Co Wealth Management LLC bought a new stake in shares of Eagle Bancorp in the first quarter worth approximately $37,000. Tower Research Capital LLC TRC raised its holdings in shares of Eagle Bancorp by 113.1% during the second quarter. Tower Research Capital LLC TRC now owns 4,092 shares of the financial services provider's stock valued at $80,000 after purchasing an additional 2,172 shares during the last quarter. Raymond James Financial Inc. purchased a new position in shares of Eagle Bancorp during the second quarter valued at approximately $99,000. Finally, Versant Capital Management Inc raised its holdings in shares of Eagle Bancorp by 16.2% during the second quarter. Versant Capital Management Inc now owns 3,545 shares of the financial services provider's stock valued at $101,000 after purchasing an additional 493 shares during the last quarter. 78.03% of the stock is currently owned by institutional investors.

Eagle Bancorp Trading Down 3.0%

The company has a market cap of $796.78 million, a P/E ratio of -6.91 and a beta of 0.96. The stock's 50-day moving average is $27.15 and its two-hundred day moving average is $26.01. The company has a debt-to-equity ratio of 0.07, a current ratio of 0.86 and a quick ratio of 0.86.

About Eagle Bancorp

Eagle Bancorp, Inc is the bank holding company for EagleBank, a commercial bank headquartered in Bethesda, Maryland. Since its founding in 1998, the company has focused on serving businesses and consumers in the Washington, DC metropolitan area. EagleBank operates a network of full-service branches and commercial banking centers, providing personalized financial solutions to corporate, nonprofit, real estate and individual clients.

The company's product portfolio includes commercial real estate lending, construction and land development financing, small business administration (SBA) loans, commercial and industrial credit facilities, and residential mortgage loans.

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