Jefferies Financial Group Inc. Invests $756,000 in Towne Bank (NASDAQ:TOWN)

Key Points

• Jefferies Financial Group Inc. has acquired a new stake in Towne Bank, purchasing 22,100 shares valued at approximately $756,000 during the first quarter.
• Towne Bank recently announced an increase in its quarterly dividend from $0.25 to $0.27, indicating a positive growth outlook for investors.
• Following a strong earnings report with an EPS of $0.81, Towne Bank received upgrades in analyst ratings, with Hovde Group increasing its price target from $39 to $41.

Jefferies Financial Group Inc. acquired a new position in Towne Bank (NASDAQ:TOWN - Free Report) during the first quarter, according to the company in its most recent disclosure with the SEC. The firm acquired 22,100 shares of the bank's stock, valued at approximately $756,000.

A number of other large investors have also modified their holdings of the company. US Bancorp DE increased its holdings in shares of Towne Bank by 28.1% in the 1st quarter. US Bancorp DE now owns 27,249 shares of the bank's stock worth $932,000 after acquiring an additional 5,983 shares during the period. Mackenzie Financial Corp increased its stake in Towne Bank by 4.4% during the 1st quarter. Mackenzie Financial Corp now owns 19,656 shares of the bank's stock valued at $672,000 after buying an additional 820 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank increased its stake in Towne Bank by 14.9% during the 1st quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 14,383 shares of the bank's stock valued at $492,000 after buying an additional 1,861 shares during the period. Royce & Associates LP increased its stake in Towne Bank by 7.1% during the 1st quarter. Royce & Associates LP now owns 576,042 shares of the bank's stock valued at $19,695,000 after buying an additional 37,989 shares during the period. Finally, Universal Beteiligungs und Servicegesellschaft mbH acquired a new position in Towne Bank during the 1st quarter valued at about $388,000. Institutional investors and hedge funds own 55.99% of the company's stock.

Wall Street Analyst Weigh In

TOWN has been the topic of several research analyst reports. Wall Street Zen raised shares of Towne Bank from a "sell" rating to a "hold" rating in a research note on Sunday, August 3rd. Hovde Group raised their target price on shares of Towne Bank from $39.00 to $41.00 and gave the company an "outperform" rating in a research note on Thursday, July 24th.

Towne Bank Stock Performance

Shares of NASDAQ:TOWN traded up $0.37 during trading hours on Friday, hitting $35.30. 148,149 shares of the company's stock traded hands, compared to its average volume of 257,073. Towne Bank has a 52 week low of $29.43 and a 52 week high of $38.28. The company's fifty day simple moving average is $34.78 and its two-hundred day simple moving average is $34.53. The company has a market cap of $2.65 billion, a price-to-earnings ratio of 15.35 and a beta of 0.84.

Towne Bank (NASDAQ:TOWN - Get Free Report) last posted its quarterly earnings data on Wednesday, July 23rd. The bank reported $0.81 earnings per share for the quarter, beating the consensus estimate of $0.69 by $0.12. Towne Bank had a net margin of 16.49% and a return on equity of 9.05%. The company had revenue of $207.44 million during the quarter, compared to analyst estimates of $202.18 million. During the same quarter last year, the firm posted $0.57 EPS. The business's revenue for the quarter was up 18.6% on a year-over-year basis. On average, analysts anticipate that Towne Bank will post 2.6 EPS for the current fiscal year.

Towne Bank Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, July 11th. Shareholders of record on Friday, June 27th were issued a $0.27 dividend. The ex-dividend date was Friday, June 27th. This is a positive change from Towne Bank's previous quarterly dividend of $0.25. This represents a $1.08 annualized dividend and a dividend yield of 3.1%. Towne Bank's dividend payout ratio is 46.96%.

About Towne Bank

TowneBank provides retail and commercial banking services for individuals, commercial enterprises, and professionals. The company operates through three segments: Banking, Realty, and Insurance. It accepts various deposits, including demand deposits, savings accounts, money rate savings, certificates of deposit, and individual retirement accounts.