Kearny Financial (NASDAQ:KRNY) Shares Gap Down After Earnings Miss

Key Points

• Kearny Financial shares gapped down after the company reported weaker-than-expected quarterly earnings. The stock opened at $8.92 versus a prior close of $9.48 and was last down about 4.7%.
• The bank posted EPS of $0.15, missing analyst estimates of $0.17, while revenue came in slightly ahead of expectations at $45.69 million.
• Analyst sentiment remains cautious, with the stock carrying an average “Hold” rating and a consensus price target of $10.50, even as some insiders and institutions have recently added to their positions.

Kearny Financial (NASDAQ:KRNY - Get Free Report)'s share price gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $9.48, but opened at $8.92. Kearny Financial shares last traded at $9.0180, with a volume of 190,049 shares.

The savings and loans company reported $0.15 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.17 by ($0.02). The firm had revenue of $45.69 million for the quarter, compared to the consensus estimate of $45.61 million. Kearny Financial had a net margin of 10.39% and a return on equity of 4.61%.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on KRNY shares. Weiss Ratings downgraded Kearny Financial from a "buy (b-)" rating to a "hold (c+)" rating in a report on Tuesday, July 14th. Piper Sandler raised their price target on Kearny Financial from $9.50 to $10.50 and gave the company an "overweight" rating in a report on Thursday, June 25th. Finally, Zacks Research upgraded Kearny Financial to a "hold" rating in a research report on Monday, April 27th. One research analyst has rated the stock with a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat, Kearny Financial has an average rating of "Hold" and an average price target of $10.50.

Insider Activity

In related news, Director Curtland E. Fields purchased 4,950 shares of the stock in a transaction dated Wednesday, June 17th. The stock was bought at an average cost of $8.34 per share, with a total value of $41,283.00. Following the purchase, the director directly owned 39,600 shares in the company, valued at $330,264. The trade was a 14.29% increase in their position. The purchase was disclosed in a document filed with the SEC, which is available at this link. Also, Director Melvina Wong-Zaza acquired 3,500 shares of the firm's stock in a transaction that occurred on Thursday, June 11th. The stock was acquired at an average price of $8.57 per share, with a total value of $29,995.00. Following the completion of the transaction, the director directly owned 33,910 shares in the company, valued at $290,608.70. This trade represents a 11.51% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders acquired 24,800 shares of company stock worth $211,196 in the last three months. Insiders own 7.44% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. Goldman Sachs Group Inc. lifted its position in shares of Kearny Financial by 8.1% in the first quarter. Goldman Sachs Group Inc. now owns 729,773 shares of the savings and loans company's stock valued at $4,568,000 after buying an additional 54,606 shares during the last quarter. Caxton Associates LLP acquired a new position in shares of Kearny Financial during the 1st quarter worth approximately $146,000. Empowered Funds LLC increased its holdings in shares of Kearny Financial by 8.7% during the 1st quarter. Empowered Funds LLC now owns 181,165 shares of the savings and loans company's stock worth $1,134,000 after acquiring an additional 14,427 shares during the last quarter. Jane Street Group LLC raised its stake in Kearny Financial by 95.0% in the 1st quarter. Jane Street Group LLC now owns 152,595 shares of the savings and loans company's stock valued at $955,000 after acquiring an additional 74,349 shares during the period. Finally, Rhumbline Advisers raised its stake in Kearny Financial by 5.1% in the 2nd quarter. Rhumbline Advisers now owns 89,669 shares of the savings and loans company's stock valued at $579,000 after acquiring an additional 4,340 shares during the period. Institutional investors and hedge funds own 71.01% of the company's stock.

Kearny Financial Stock Down 4.7%

The firm has a fifty day simple moving average of $8.76 and a 200-day simple moving average of $8.14. The firm has a market cap of $584.93 million, a price-to-earnings ratio of 15.85 and a beta of 0.64. The company has a debt-to-equity ratio of 1.39, a quick ratio of 1.03 and a current ratio of 1.03.

Kearny Financial Company Profile

Kearny Financial, Inc was the bank holding company for Kearny Bank, a New Jersey–based community bank offering a full suite of commercial and consumer banking services. Through its subsidiary, the company provided deposit products, lending facilities and electronic banking solutions to individuals, small businesses and middle-market corporations.

The company's core products included checking and savings accounts, certificates of deposit, residential and commercial real estate loans, construction financing, equipment financing, home equity lines of credit and consumer installment loans.

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