Old Second Bancorp, Inc. (NASDAQ:OSBC) Plans Quarterly Dividend of $0.07

Key Points

• Old Second Bancorp declared a quarterly dividend of $0.07 per share (record date May 1, payable May 11), implying an annualized payout of $0.28 and a yield of about 1.3%, with a low payout ratio (~13.7%) indicating the dividend is well covered by earnings.
• The company beat expectations in its last quarter (reported $0.58 EPS vs. $0.53 est. and $95.2M revenue) and analysts forecast roughly $2.2–$2.28 in EPS over the next year, supporting continued dividend coverage.
• Shares recently traded at $21.21 (down ~0.7%), with a market cap of about $1.1B, a P/E of 13.0, and a consensus analyst rating of "Moderate Buy" with an average target around $23.38.

Old Second Bancorp, Inc. (NASDAQ:OSBC - Get Free Report) declared a quarterly dividend on Tuesday, April 21st. Stockholders of record on Friday, May 1st will be paid a dividend of 0.07 per share by the financial services provider on Monday, May 11th. This represents a c) dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date of this dividend is Friday, May 1st.

Old Second Bancorp has raised its dividend by an average of 0.4%annually over the last three years and has raised its dividend annually for the last 1 consecutive years. Old Second Bancorp has a payout ratio of 13.7% indicating that its dividend is sufficiently covered by earnings. Analysts expect Old Second Bancorp to earn $2.28 per share next year, which means the company should continue to be able to cover its $0.28 annual dividend with an expected future payout ratio of 12.3%.

Old Second Bancorp Stock Down 0.7%

OSBC traded down $0.16 on Wednesday, reaching $21.21. The company's stock had a trading volume of 105,876 shares, compared to its average volume of 378,139. The stock has a 50 day moving average of $20.31 and a two-hundred day moving average of $19.63. The company has a quick ratio of 0.91, a current ratio of 0.91 and a debt-to-equity ratio of 0.11. The company has a market capitalization of $1.10 billion, a price-to-earnings ratio of 13.00 and a beta of 0.74. Old Second Bancorp has a fifty-two week low of $15.01 and a fifty-two week high of $22.43.

Old Second Bancorp (NASDAQ:OSBC - Get Free Report) last announced its quarterly earnings results on Wednesday, January 21st. The financial services provider reported $0.58 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.53 by $0.05. The firm had revenue of $95.20 million during the quarter, compared to the consensus estimate of $82.49 million. Old Second Bancorp had a return on equity of 12.79% and a net margin of 20.00%. As a group, analysts forecast that Old Second Bancorp will post 2.2 EPS for the current fiscal year.

Analyst Ratings Changes

A number of research firms recently issued reports on OSBC. Weiss Ratings restated a "buy (b-)" rating on shares of Old Second Bancorp in a research note on Thursday, January 22nd. Stephens assumed coverage on Old Second Bancorp in a research note on Friday, March 27th. They issued an "overweight" rating and a $23.00 target price on the stock. Finally, DA Davidson lifted their target price on Old Second Bancorp from $22.00 to $23.00 and gave the company a "neutral" rating in a research note on Friday, January 23rd. Four analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat.com, Old Second Bancorp has a consensus rating of "Moderate Buy" and an average target price of $23.38.

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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