OP Bancorp (NASDAQ:OPBK) Raises Dividend to $0.14 Per Share

Key Points

• OP Bancorp raised its quarterly dividend to $0.14 (a 16.7% increase from $0.12), implying a 4.0% yield; the ex-dividend date is May 7 and the payment date is May 21.
• The dividend appears sustainable—management reports a payout ratio around 26.5%, and analysts forecast about $2.06 in EPS next year—while the company also beat Q earnings with $0.48 EPS versus $0.41 expected.
• Shares trade near $14 with a market cap of about $210 million and a P/E of 8.25, and institutional ownership is ~53.6% after several funds materially increased or initiated positions.

OP Bancorp (NASDAQ:OPBK - Get Free Report) announced a quarterly dividend on Thursday, April 23rd. Stockholders of record on Thursday, May 7th will be paid a dividend of 0.14 per share on Thursday, May 21st. This represents a c) dividend on an annualized basis and a dividend yield of 4.0%. The ex-dividend date is Thursday, May 7th. This is a 16.7% increase from OP Bancorp's previous quarterly dividend of $0.12.

OP Bancorp has increased its dividend payment by an average of 0.1%annually over the last three years. OP Bancorp has a dividend payout ratio of 26.5% indicating that its dividend is sufficiently covered by earnings. Analysts expect OP Bancorp to earn $2.06 per share next year, which means the company should continue to be able to cover its $0.48 annual dividend with an expected future payout ratio of 23.3%.

OP Bancorp Price Performance

Shares of NASDAQ OPBK opened at $14.11 on Friday. The stock has a market capitalization of $210.10 million, a price-to-earnings ratio of 8.25 and a beta of 0.62. OP Bancorp has a 12 month low of $11.52 and a 12 month high of $15.27. The firm's 50 day simple moving average is $13.56 and its 200-day simple moving average is $13.76. The company has a debt-to-equity ratio of 0.44, a current ratio of 1.03 and a quick ratio of 1.02.

OP Bancorp (NASDAQ:OPBK - Get Free Report) last issued its quarterly earnings data on Thursday, April 23rd. The company reported $0.48 EPS for the quarter, topping analysts' consensus estimates of $0.41 by $0.07. The business had revenue of $24.56 million for the quarter, compared to analysts' expectations of $25.37 million. OP Bancorp had a net margin of 15.39% and a return on equity of 11.75%. Analysts expect that OP Bancorp will post 1.84 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in OPBK. Diversify Advisory Services LLC lifted its position in shares of OP Bancorp by 145.4% during the 3rd quarter. Diversify Advisory Services LLC now owns 1,840,941 shares of the company's stock valued at $24,595,000 after buying an additional 1,090,687 shares in the last quarter. Geode Capital Management LLC lifted its position in shares of OP Bancorp by 118.3% during the 2nd quarter. Geode Capital Management LLC now owns 273,701 shares of the company's stock valued at $3,556,000 after buying an additional 148,299 shares in the last quarter. Segall Bryant & Hamill LLC purchased a new position in OP Bancorp in the 3rd quarter valued at $1,864,000. Marshall Wace LLP lifted its holdings in OP Bancorp by 960.2% in the 2nd quarter. Marshall Wace LLP now owns 140,591 shares of the company's stock valued at $1,826,000 after purchasing an additional 127,330 shares in the last quarter. Finally, Two Sigma Investments LP purchased a new position in OP Bancorp in the 3rd quarter valued at $715,000. Hedge funds and other institutional investors own 53.63% of the company's stock.

About OP Bancorp

OP Bancorp is the bank holding company for Old Point National Bank, a community-focused financial institution headquartered in Suffolk, Virginia. Through its subsidiary, the company offers a broad range of commercial and consumer banking services designed to meet the needs of businesses, professionals and individuals across the Hampton Roads and Virginia Peninsula regions. Core services include business lending, real estate financing, deposit accounts, cash management solutions and treasury services.

The company's lending portfolio spans commercial real estate loans, construction and land development financing, equipment loans and lines of credit tailored for small and medium-sized enterprises.

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