First United (NASDAQ:FUNC) Announces Earnings Results

Key Points

• First United beat quarterly expectations, reporting EPS of $1.13 versus the $1.05 consensus and revenue of $23.94 million versus estimates of $23.55 million.
• The bank announced a quarterly dividend of $0.26 per share, payable August 3, for an annualized yield of 2.3% and a payout ratio of 26.6%.
• Analyst sentiment remains generally positive, with an average Buy rating and an average price target of $47.25, though one firm recently downgraded the stock to Hold.

First United (NASDAQ:FUNC - Get Free Report) issued its quarterly earnings results on Monday. The bank reported $1.13 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.05 by $0.08, FiscalAI reports. The business had revenue of $23.94 million for the quarter, compared to analyst estimates of $23.55 million. First United had a net margin of 20.55% and a return on equity of 13.39%.

First United Stock Performance

Shares of First United stock traded down $0.71 during trading on Monday, hitting $44.64. 18,946 shares of the company's stock were exchanged, compared to its average volume of 17,140. The company has a debt-to-equity ratio of 0.15, a quick ratio of 0.91 and a current ratio of 0.91. The business has a 50-day simple moving average of $41.25 and a 200-day simple moving average of $38.73. First United has a 52-week low of $31.71 and a 52-week high of $46.30. The stock has a market capitalization of $287.79 million, a price-to-earnings ratio of 11.42 and a beta of 0.52.

First United Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, August 3rd. Investors of record on Monday, July 20th will be issued a dividend of $0.26 per share. This represents a $1.04 annualized dividend and a dividend yield of 2.3%. The ex-dividend date of this dividend is Monday, July 20th. First United's dividend payout ratio (DPR) is 26.60%.

Institutional Investors Weigh In On First United

Several hedge funds have recently added to or reduced their stakes in the business. Millennium Management LLC lifted its holdings in shares of First United by 349.9% in the 1st quarter. Millennium Management LLC now owns 140,586 shares of the bank's stock valued at $4,220,000 after buying an additional 109,340 shares during the period. Geode Capital Management LLC grew its holdings in First United by 112.3% during the second quarter. Geode Capital Management LLC now owns 139,939 shares of the bank's stock worth $4,340,000 after acquiring an additional 74,032 shares during the period. Marshall Wace LLP grew its holdings in First United by 118.1% during the fourth quarter. Marshall Wace LLP now owns 44,047 shares of the bank's stock worth $1,649,000 after acquiring an additional 23,850 shares during the period. Goldman Sachs Group Inc. raised its position in First United by 53.2% during the first quarter. Goldman Sachs Group Inc. now owns 58,718 shares of the bank's stock valued at $1,763,000 after acquiring an additional 20,387 shares in the last quarter. Finally, Los Angeles Capital Management LLC purchased a new position in First United during the fourth quarter valued at approximately $695,000. 33.27% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several equities research analysts have recently commented on FUNC shares. Wall Street Zen downgraded shares of First United from a "buy" rating to a "hold" rating in a research note on Monday, June 15th. Weiss Ratings reissued a "buy (b)" rating on shares of First United in a research report on Friday, July 10th. Raymond James Financial raised their target price on First United from $44.00 to $50.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 1st. Finally, Hovde Group started coverage on First United in a research report on Friday, May 29th. They set an "outperform" rating and a $44.50 price target for the company. Three investment analysts have rated the stock with a Buy rating, According to MarketBeat, First United has an average rating of "Buy" and an average target price of $47.25.

First United Company Profile

First United Corporation is a bank holding company that, through its subsidiary First United Bank & Trust, provides a full suite of commercial and consumer banking services to individuals, businesses, and agricultural customers across central Oklahoma. The company offers deposit accounts such as checking, savings, money market and time deposits, alongside a variety of lending solutions covering commercial real estate, construction, agricultural and consumer loans.

In addition to traditional banking products, First United delivers treasury management and cash management solutions designed to streamline client operations, as well as online and mobile banking platforms for account access and payments.

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