Old Second Bancorp, Inc. (NASDAQ:OSBC) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• Analysts give Old Second a consensus "Moderate Buy" rating (four buys, one hold) with an average 12‑month price target of about $23.38.
• Q1 showed an EPS miss ($0.49 vs. $0.52) and revenue slightly below expectations ($93.77M vs. ~$94.8M); despite healthy ROE (~12.8%) and net margin (~20%), higher credit costs and mixed guidance pushed the stock down roughly 6.4% on heavy volume.
• Insiders sold about 37,091 shares (~$776,744) in the last 90 days while owning 3.8% of the stock, and the board declared a quarterly $0.07 dividend (annualized $0.28, ~1.3–1.4% yield, payout ratio ~17%).

Old Second Bancorp, Inc. (NASDAQ:OSBC - Get Free Report) has received an average rating of "Moderate Buy" from the five ratings firms that are currently covering the company, MarketBeat Ratings reports. One research analyst has rated the stock with a hold recommendation and four have given a buy recommendation to the company. The average 12 month price target among brokers that have issued ratings on the stock in the last year is $23.3750.

OSBC has been the topic of a number of research reports. Weiss Ratings reissued a "buy (b-)" rating on shares of Old Second Bancorp in a report on Thursday, January 22nd. Stephens initiated coverage on shares of Old Second Bancorp in a report on Friday, March 27th. They set an "overweight" rating and a $23.00 target price on the stock. Finally, DA Davidson boosted their target price on shares of Old Second Bancorp from $22.00 to $23.00 and gave the stock a "neutral" rating in a report on Friday, January 23rd.

More Old Second Bancorp News

Here are the key news stories impacting Old Second Bancorp this week:

• Positive Sentiment: Board declared a quarterly cash dividend of $0.07 per share (annualized yield ~1.3%), providing a modest income cue for shareholders.
• Positive Sentiment: Profitability metrics remain healthy — reported return on equity ~12.79% and a net margin of 20%, indicating underlying earning power. Press Release — Q1 Results
• Neutral Sentiment: Company reported net income of $25.6 million, or $0.48 per diluted share, in the press release — a clear numeric readout but down from the prior quarter’s figure. AccessNewswire — Q1 Net Income
• Neutral Sentiment: Revenue came in at $93.77M, roughly in line with expectations but slightly below the consensus ~$94.8M, so top-line performance was effectively flat/tepid. MSN — Revenue In Line
• Negative Sentiment: Earnings per share missed Street estimates: $0.49 reported vs. ~$0.52 consensus — the miss is the primary catalyst for downward pressure on the stock. Zacks — EPS Miss
• Negative Sentiment: Analyst write-ups and the earnings call highlight higher credit costs that offset margin strength, creating a mixed operational picture and raising near-term earnings uncertainty. MSN — Deep Dive on Credit Costs Fool — Earnings Call Transcript
• Negative Sentiment: Trading volume spiked well above average as investors reacted to the mixed print and guidance commentary, amplifying the share-price decline.

Insiders Place Their Bets

In other news, insider Darin Patrick Campbell sold 35,000 shares of the company's stock in a transaction on Wednesday, February 18th. The shares were sold at an average price of $20.94, for a total value of $732,900.00. Following the sale, the insider directly owned 274,589 shares of the company's stock, valued at approximately $5,749,893.66. This represents a 11.31% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP Richard A. Gartelmann, Jr. sold 2,000 shares of the company's stock in a transaction on Thursday, February 5th. The shares were sold at an average price of $20.98, for a total transaction of $41,960.00. Following the completion of the sale, the executive vice president directly owned 24,874 shares in the company, valued at approximately $521,856.52. This represents a 7.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 37,091 shares of company stock worth $776,744. Insiders own 3.80% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the stock. Los Angeles Capital Management LLC lifted its position in shares of Old Second Bancorp by 1.8% during the 4th quarter. Los Angeles Capital Management LLC now owns 28,606 shares of the financial services provider's stock valued at $519,000 after acquiring an additional 493 shares during the period. Nisa Investment Advisors LLC raised its holdings in Old Second Bancorp by 12.7% during the fourth quarter. Nisa Investment Advisors LLC now owns 4,776 shares of the financial services provider's stock worth $93,000 after buying an additional 540 shares during the last quarter. Quadrant Capital Group LLC raised its holdings in Old Second Bancorp by 32.7% during the fourth quarter. Quadrant Capital Group LLC now owns 2,523 shares of the financial services provider's stock worth $49,000 after buying an additional 622 shares during the last quarter. Russell Investments Group Ltd. raised its holdings in Old Second Bancorp by 0.8% during the fourth quarter. Russell Investments Group Ltd. now owns 112,121 shares of the financial services provider's stock worth $2,186,000 after buying an additional 908 shares during the last quarter. Finally, Hudson Edge Investment Partners Inc. raised its holdings in Old Second Bancorp by 1.6% during the third quarter. Hudson Edge Investment Partners Inc. now owns 61,653 shares of the financial services provider's stock worth $1,066,000 after buying an additional 979 shares during the last quarter. Institutional investors and hedge funds own 67.76% of the company's stock.

Old Second Bancorp Trading Down 6.4%

OSBC opened at $19.85 on Friday. Old Second Bancorp has a fifty-two week low of $15.01 and a fifty-two week high of $22.43. The company has a debt-to-equity ratio of 0.11, a current ratio of 0.91 and a quick ratio of 0.91. The firm has a market capitalization of $1.03 billion, a price-to-earnings ratio of 11.82 and a beta of 0.74. The company's 50 day moving average price is $20.32 and its two-hundred day moving average price is $19.64.

Old Second Bancorp (NASDAQ:OSBC - Get Free Report) last posted its earnings results on Wednesday, April 22nd. The financial services provider reported $0.49 earnings per share for the quarter, missing analysts' consensus estimates of $0.52 by ($0.03). Old Second Bancorp had a return on equity of 12.92% and a net margin of 20.07%.The business had revenue of $93.77 million for the quarter, compared to the consensus estimate of $94.80 million. As a group, research analysts predict that Old Second Bancorp will post 2.2 earnings per share for the current year.

Old Second Bancorp Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, May 11th. Stockholders of record on Friday, May 1st will be paid a $0.07 dividend. This represents a $0.28 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date of this dividend is Friday, May 1st. Old Second Bancorp's dividend payout ratio is currently 17.18%.

About Old Second Bancorp

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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