Eagle Bancorp (NASDAQ:EGBN) Shares Gap Down on Disappointing Earnings

Key Points

• Eagle Bancorp shares gapped down significantly after reporting disappointing earnings, opening at $17.50 compared to a previous close of $19.38.
• The company announced a quarterly dividend of $0.01, reflecting a payout ratio of -64.71%, indicating financial strain.
• The stock has experienced a 12.4% decline, with an average analyst rating of "Hold" and a target price of $21.00.

Eagle Bancorp, Inc. (NASDAQ:EGBN - Get Free Report) shares gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $19.38, but opened at $17.50. Eagle Bancorp shares last traded at $17.11, with a volume of 166,364 shares changing hands.

The financial services provider reported $1.20 EPS for the quarter. The company had revenue of $88.48 million during the quarter. Eagle Bancorp had a negative net margin of 4.60% and a negative return on equity of 2.54%.

Eagle Bancorp Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, November 14th. Investors of record on Monday, November 3rd will be given a $0.01 dividend. The ex-dividend date is Monday, November 3rd. This represents a $0.04 dividend on an annualized basis and a dividend yield of 0.2%. Eagle Bancorp's dividend payout ratio is currently -64.71%.

Wall Street Analyst Weigh In

A number of analysts recently commented on the stock. Zacks Research upgraded shares of Eagle Bancorp from a "strong sell" rating to a "hold" rating in a research report on Monday, October 6th. Wall Street Zen cut Eagle Bancorp from a "hold" rating to a "strong sell" rating in a report on Saturday, July 26th. Piper Sandler lowered their target price on Eagle Bancorp from $21.00 to $18.00 and set a "neutral" rating for the company in a report on Wednesday, August 6th. Finally, Weiss Ratings restated a "sell (d)" rating on shares of Eagle Bancorp in a report on Wednesday, October 8th. One investment analyst has rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $21.00.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Financial Consulate Inc. acquired a new position in shares of Eagle Bancorp during the third quarter worth $34,000. MAI Capital Management boosted its position in Eagle Bancorp by 24.2% during the second quarter. MAI Capital Management now owns 3,448 shares of the financial services provider's stock valued at $67,000 after acquiring an additional 671 shares during the last quarter. Atlantic Union Bankshares Corp bought a new stake in Eagle Bancorp during the second quarter valued at $70,000. Tower Research Capital LLC TRC boosted its position in shares of Eagle Bancorp by 113.1% during the 2nd quarter. Tower Research Capital LLC TRC now owns 4,092 shares of the financial services provider's stock worth $80,000 after purchasing an additional 2,172 shares in the last quarter. Finally, Raymond James Financial Inc. bought a new position in shares of Eagle Bancorp during the 2nd quarter worth about $99,000. 78.03% of the stock is currently owned by institutional investors and hedge funds.

Eagle Bancorp Stock Down 12.4%

The company has a market cap of $515.83 million, a P/E ratio of -16.65 and a beta of 1.13. The company has a current ratio of 0.85, a quick ratio of 0.85 and a debt-to-equity ratio of 0.06. The stock's 50-day moving average price is $19.95 and its 200-day moving average price is $19.09.

About Eagle Bancorp

Eagle Bancorp, Inc operates as the bank holding company for EagleBank that provides commercial and consumer banking services primarily in the United States. The company also offers various commercial and consumer lending products comprising commercial loans for working capital, equipment purchases, real estate lines of credit, and government contract financing; asset based lending and accounts receivable financing; construction and commercial real estate loans; business equipment financing; consumer home equity lines of credit, personal lines of credit, and term loans; consumer installment loans, such as auto and personal loans; personal credit cards; and residential mortgage loans.

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