Davis Asset Management L.P. Takes $41.98 Million Position in Old Second Bancorp, Inc. $OSBC

Key Points

• Davis Asset Management acquired 1.8 million Old Second Bancorp shares worth approximately $41.98 million, giving it a 3.54% stake and making the bank one of its 30 largest holdings. Institutional investors collectively own 67.76% of OSBC.
• Old Second Bancorp reported quarterly EPS of $0.55, matching analyst estimates, with a 20.22% net margin and 12.79% return on equity. The company also pays a quarterly dividend of $0.07, equivalent to a 1.1% yield.
• Analyst sentiment remains positive, with a consensus “Buy” rating and a $25.40 price target; Piper Sandler raised its target to $30.00. Shares recently traded at $25.33, near the company’s 52-week high of $26.06.

Davis Asset Management L.P. purchased a new position in shares of Old Second Bancorp, Inc. (NASDAQ:OSBC - Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor purchased 1,800,000 shares of the financial services provider's stock, valued at approximately $41,976,000. Old Second Bancorp accounts for 1.1% of Davis Asset Management L.P.'s investment portfolio, making the stock its 29th biggest holding. Davis Asset Management L.P. owned about 3.54% of Old Second Bancorp as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Harbour Investments Inc. acquired a new position in Old Second Bancorp in the fourth quarter valued at about $26,000. EverSource Wealth Advisors LLC increased its position in shares of Old Second Bancorp by 458.5% during the second quarter. EverSource Wealth Advisors LLC now owns 1,480 shares of the financial services provider's stock valued at $26,000 after acquiring an additional 1,215 shares during the last quarter. Rockefeller Capital Management L.P. acquired a new stake in shares of Old Second Bancorp during the fourth quarter valued at about $27,000. Parkside Financial Bank & Trust purchased a new stake in shares of Old Second Bancorp in the 4th quarter valued at approximately $45,000. Finally, Clearstead Advisors LLC raised its stake in shares of Old Second Bancorp by 793.8% in the 4th quarter. Clearstead Advisors LLC now owns 2,431 shares of the financial services provider's stock valued at $47,000 after acquiring an additional 2,159 shares during the period. 67.76% of the stock is owned by institutional investors and hedge funds.

Old Second Bancorp Trading Up 0.5%

NASDAQ OSBC opened at $25.33 on Friday. The company has a debt-to-equity ratio of 0.08, a quick ratio of 0.91 and a current ratio of 0.91. The firm has a market cap of $1.29 billion, a price-to-earnings ratio of 14.56 and a beta of 0.70. The firm has a 50 day simple moving average of $23.99 and a 200-day simple moving average of $21.81. Old Second Bancorp, Inc. has a one year low of $16.65 and a one year high of $26.06.

Old Second Bancorp (NASDAQ:OSBC - Get Free Report) last released its earnings results on Wednesday, July 22nd. The financial services provider reported $0.55 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $0.55. Old Second Bancorp had a net margin of 20.22% and a return on equity of 12.79%. Equities research analysts anticipate that Old Second Bancorp, Inc. will post 2.2 EPS for the current fiscal year.

Old Second Bancorp Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, August 10th. Stockholders of record on Friday, July 31st were paid a $0.07 dividend. This represents a $0.28 annualized dividend and a dividend yield of 1.1%. The ex-dividend date was Friday, July 31st. Old Second Bancorp's dividend payout ratio (DPR) is presently 16.09%.

Analyst Ratings Changes

A number of equities analysts recently weighed in on OSBC shares. Piper Sandler reaffirmed an "overweight" rating and set a $30.00 price objective (up from $26.00) on shares of Old Second Bancorp in a research report on Monday, July 27th. Weiss Ratings reissued a "buy (b)" rating on shares of Old Second Bancorp in a research report on Friday, May 29th. DA Davidson upped their price target on Old Second Bancorp from $24.00 to $25.00 and gave the stock a "neutral" rating in a research note on Friday, July 24th. Raymond James Financial started coverage on Old Second Bancorp in a research report on Tuesday, July 7th. They set an "outperform" rating and a $26.00 price target for the company. Finally, Zacks Research raised Old Second Bancorp from a "hold" rating to a "strong-buy" rating in a research note on Thursday, July 30th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, Old Second Bancorp has a consensus rating of "Buy" and a consensus price target of $25.40.

Insider Activity

In related news, CEO James Eccher sold 19,313 shares of the business's stock in a transaction on Wednesday, August 12th. The stock was sold at an average price of $25.61, for a total transaction of $494,605.93. Following the completion of the transaction, the chief executive officer directly owned 303,399 shares of the company's stock, valued at $7,770,048.39. The trade was a 5.98% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 3.60% of the company's stock.

Old Second Bancorp Company Profile

Old Second Bancorp, Inc is a bank holding company based in Aurora, Illinois, serving businesses and consumers through its primary subsidiary, Old Second National Bank. The company provides a broad range of commercial and retail banking services across the suburban Chicago marketplace, supported by a branch network and online platforms designed to meet the financial needs of local communities.

In its commercial banking division, Old Second offers lending solutions that include lines of credit, term loans, equipment financing and commercial real estate financing.

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