Norwood Financial (NASDAQ:NWFL) Releases Earnings Results, Misses Expectations By $0.09 EPS

Key Points

• Missed expectations: Norwood Financial reported $0.72 EPS for the quarter, missing the consensus by $0.09, while posting a 20.39% net margin and 12.40% return on equity.
• Quarterly dividend announced: The company declared a $0.32 per share quarterly dividend (annualized $1.28) for a ~4.1% yield, with an ex-dividend date of April 15 and payment on May 1.
• Insider buying and mixed outlook: Insiders purchased 9,700 shares over the last three months (insider ownership 8.1%), the stock trades at a $336M market cap with a P/E of 10.32, and analysts hold a consensus "Hold" with an average $33 target despite a few recent upgrades to "Buy."

Norwood Financial (NASDAQ:NWFL - Get Free Report) issued its earnings results on Monday. The financial services provider reported $0.72 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.81 by ($0.09), FiscalAI reports. Norwood Financial had a net margin of 20.39% and a return on equity of 12.40%.

Norwood Financial Price Performance

NWFL stock opened at $30.86 on Monday. The company's 50-day moving average price is $29.91 and its two-hundred day moving average price is $28.75. The firm has a market cap of $336.07 million, a P/E ratio of 10.32 and a beta of 0.58. The company has a quick ratio of 0.90, a current ratio of 0.90 and a debt-to-equity ratio of 0.25. Norwood Financial has a 12 month low of $23.64 and a 12 month high of $32.23.

Norwood Financial Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, May 1st. Stockholders of record on Wednesday, April 15th will be issued a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a dividend yield of 4.1%. The ex-dividend date of this dividend is Wednesday, April 15th. Norwood Financial's dividend payout ratio is 42.81%.

Analyst Ratings Changes

A number of research firms have recently issued reports on NWFL. Weiss Ratings raised Norwood Financial from a "hold (c)" rating to a "buy (b-)" rating in a research report on Monday, March 16th. Stephens set a $33.00 price target on Norwood Financial and gave the company an "equal weight" rating in a research note on Wednesday, February 11th. Finally, Wall Street Zen raised Norwood Financial from a "hold" rating to a "buy" rating in a report on Saturday, January 31st. One analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat, Norwood Financial presently has a consensus rating of "Hold" and an average target price of $33.00.

Insider Buying and Selling

In related news, Director Joseph W. Carroll purchased 4,000 shares of the stock in a transaction dated Wednesday, January 28th. The stock was bought at an average cost of $28.13 per share, for a total transaction of $112,520.00. Following the completion of the acquisition, the director owned 41,503 shares of the company's stock, valued at approximately $1,167,479.39. This represents a 10.67% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director James Shook purchased 3,500 shares of the company's stock in a transaction dated Wednesday, January 28th. The stock was purchased at an average price of $28.80 per share, with a total value of $100,800.00. Following the completion of the purchase, the director directly owned 8,330 shares in the company, valued at $239,904. The trade was a 72.46% increase in their position. The SEC filing for this purchase provides additional information. Insiders purchased 9,700 shares of company stock worth $274,770 over the last three months. 8.10% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Norwood Financial

A number of institutional investors and hedge funds have recently bought and sold shares of NWFL. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in shares of Norwood Financial by 18.5% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 4,909 shares of the financial services provider's stock worth $119,000 after purchasing an additional 765 shares during the last quarter. Geode Capital Management LLC boosted its position in Norwood Financial by 3.2% during the 2nd quarter. Geode Capital Management LLC now owns 201,858 shares of the financial services provider's stock worth $5,205,000 after buying an additional 6,238 shares during the period. Marshall Wace LLP acquired a new stake in Norwood Financial during the 2nd quarter worth approximately $648,000. Raymond James Financial Inc. grew its holdings in Norwood Financial by 20.8% during the 2nd quarter. Raymond James Financial Inc. now owns 89,419 shares of the financial services provider's stock worth $2,305,000 after acquiring an additional 15,408 shares during the last quarter. Finally, Tower Research Capital LLC TRC grew its holdings in Norwood Financial by 293.6% during the 2nd quarter. Tower Research Capital LLC TRC now owns 1,771 shares of the financial services provider's stock worth $46,000 after acquiring an additional 1,321 shares during the last quarter. Institutional investors and hedge funds own 28.08% of the company's stock.

About Norwood Financial

Norwood Financial Corp. operates as the bank holding company for Wayne Bank that provides various banking products and services. The company accepts a range of deposit products, including interest-bearing and non-interest-bearing transaction accounts, and statement savings and money market accounts, as well as certificate of deposits. It also provides commercial loans comprising lines of credit, revolving credit, term loans, mortgages, secured lending products, and letter of credit facilities; municipal finance lending; construction loans for commercial construction projects and single-family residences; land loans; construction financing; consumer loans; mortgage lending to finance principal residences and second home dwellings; and indirect dealer financing of new and used automobiles, boats, and recreational vehicles.

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