Bank of New York Mellon Corp Makes New $19.43 Million Investment in Towne Bank $TOWN

Key Points

• Bank of New York Mellon Corp acquired 536,108 shares of Towne Bank valued at approximately $19.43 million, representing a 0.68% stake. Institutional investors collectively own 55.99% of the company.
• Towne Bank reported quarterly earnings of $0.78 per share, slightly below the $0.79 analyst consensus, while revenue of $245.72 million narrowly exceeded estimates.
• The bank declared a quarterly dividend of $0.28, equating to $1.12 annually and a 3.0% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $39.50.

Bank of New York Mellon Corp bought a new stake in Towne Bank (NASDAQ:TOWN - Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund bought 536,108 shares of the bank's stock, valued at approximately $19,429,000. Bank of New York Mellon Corp owned 0.68% of Towne Bank at the end of the most recent reporting period.

Other institutional investors have also recently made changes to their positions in the company. Dimensional Fund Advisors LP increased its stake in shares of Towne Bank by 1.4% in the first quarter. Dimensional Fund Advisors LP now owns 4,399,012 shares of the bank's stock worth $148,114,000 after purchasing an additional 59,267 shares in the last quarter. Patriot Financial Partners GP II L.P. purchased a new stake in shares of Towne Bank during the 1st quarter valued at approximately $51,116,000. Vanguard Group Inc. lifted its stake in shares of Towne Bank by 5.8% during the 4th quarter. Vanguard Group Inc. now owns 8,082,514 shares of the bank's stock valued at $269,713,000 after buying an additional 443,345 shares in the last quarter. Seizert Capital Partners LLC purchased a new stake in shares of Towne Bank during the 4th quarter valued at approximately $2,011,000. Finally, Quantinno Capital Management LP boosted its holdings in Towne Bank by 462.9% in the 1st quarter. Quantinno Capital Management LP now owns 51,368 shares of the bank's stock worth $1,730,000 after buying an additional 42,242 shares during the period. Hedge funds and other institutional investors own 55.99% of the company's stock.

Towne Bank Price Performance

Shares of NASDAQ:TOWN opened at $37.43 on Monday. The company has a 50 day moving average of $36.97 and a 200 day moving average of $35.40. The stock has a market cap of $2.96 billion, a P/E ratio of 10.51 and a beta of 0.69. Towne Bank has a 12 month low of $31.91 and a 12 month high of $39.03. The company has a current ratio of 0.90, a quick ratio of 0.88 and a debt-to-equity ratio of 0.04.

Towne Bank (NASDAQ:TOWN - Get Free Report) last posted its earnings results on Thursday, July 23rd. The bank reported $0.78 earnings per share for the quarter, missing analysts' consensus estimates of $0.79 by ($0.01). Towne Bank had a return on equity of 9.60% and a net margin of 25.64%.The firm had revenue of $245.72 million for the quarter, compared to the consensus estimate of $245.33 million. As a group, sell-side analysts forecast that Towne Bank will post 3.09 EPS for the current fiscal year.

Towne Bank Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 9th. Investors of record on Friday, September 25th will be given a $0.28 dividend. This represents a $1.12 dividend on an annualized basis and a dividend yield of 3.0%. The ex-dividend date is Friday, September 25th. Towne Bank's dividend payout ratio (DPR) is 31.46%.

Analyst Upgrades and Downgrades

TOWN has been the topic of a number of analyst reports. Keefe, Bruyette & Woods reissued a "market perform" rating and set a $38.00 target price (down from $42.00) on shares of Towne Bank in a report on Wednesday, May 6th. Zacks Research raised Towne Bank from a "strong sell" rating to a "hold" rating in a report on Monday, June 29th. Finally, Weiss Ratings upgraded Towne Bank from a "buy (b+)" rating to a "buy (a-)" rating in a research report on Wednesday. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $39.50.

Towne Bank Company Profile

TowneBank is a Virginia‐based financial services company organized as a bank holding company. Its primary subsidiary, TowneBank, operates a network of community banking offices and mortgage production facilities. The company offers a comprehensive range of commercial and consumer banking solutions, including deposit accounts, lending products, treasury management, and private banking services tailored to individuals, small businesses, and middle‐market corporations.

In addition to traditional banking, TowneBank provides specialty services through affiliated subsidiaries.

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