Orrstown Financial Services (NASDAQ:ORRF) Reaches New 12-Month High on Analyst Upgrade

Key Points

• Orrstown Financial Services hit a new 52-week high after Keefe, Bruyette & Woods raised its price target to $46 from $44 and kept an outperform rating. The stock traded as high as $43.00 during the session.
• The company’s latest earnings beat expectations, with quarterly EPS of $1.09 versus the $1.03 consensus and revenue of $64.3 million, slightly above estimates. Analysts now expect full-year EPS of 4.29.
• Orrstown also announced a quarterly dividend of $0.30 per share, payable on August 11, which implies an annualized yield of 2.8%. Institutional investors have been increasing positions, and hedge funds now own 44.27% of the stock.

Shares of Orrstown Financial Services Inc (NASDAQ:ORRF - Get Free Report) reached a new 52-week high during trading on Friday after Keefe, Bruyette & Woods raised their price target on the stock from $44.00 to $46.00. Keefe, Bruyette & Woods currently has an outperform rating on the stock. Orrstown Financial Services traded as high as $43.00 and last traded at $42.3240, with a volume of 15677 shares trading hands. The stock had previously closed at $41.96.

Several other brokerages have also recently weighed in on ORRF. DA Davidson reissued a "neutral" rating and set a $41.00 price target on shares of Orrstown Financial Services in a research report on Wednesday. Raymond James Financial initiated coverage on shares of Orrstown Financial Services in a research report on Thursday, July 9th. They set a "market perform" rating for the company. Finally, Weiss Ratings reaffirmed a "buy (b)" rating on shares of Orrstown Financial Services in a research note on Tuesday, July 7th. Three research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $43.00.

Institutional Trading of Orrstown Financial Services

A number of large investors have recently modified their holdings of ORRF. Assenagon Asset Management S.A. acquired a new stake in Orrstown Financial Services in the first quarter valued at approximately $10,743,000. Kennedy Capital Management LLC grew its holdings in Orrstown Financial Services by 569.5% during the 3rd quarter. Kennedy Capital Management LLC now owns 280,723 shares of the bank's stock worth $9,539,000 after acquiring an additional 238,790 shares in the last quarter. Marshall Wace LLP purchased a new stake in shares of Orrstown Financial Services in the 2nd quarter valued at approximately $7,424,000. Millennium Management LLC increased its position in shares of Orrstown Financial Services by 123.8% in the 1st quarter. Millennium Management LLC now owns 330,322 shares of the bank's stock valued at $9,913,000 after purchasing an additional 182,709 shares during the last quarter. Finally, Goldman Sachs Group Inc. raised its holdings in shares of Orrstown Financial Services by 170.6% in the 4th quarter. Goldman Sachs Group Inc. now owns 278,649 shares of the bank's stock valued at $9,870,000 after purchasing an additional 175,682 shares in the last quarter. Hedge funds and other institutional investors own 44.27% of the company's stock.

Orrstown Financial Services Price Performance

The firm has a market capitalization of $831.78 million, a price-to-earnings ratio of 9.51 and a beta of 0.70. The stock's fifty day moving average price is $39.11 and its two-hundred day moving average price is $37.47. The company has a current ratio of 0.87, a quick ratio of 0.87 and a debt-to-equity ratio of 0.06.

Orrstown Financial Services (NASDAQ:ORRF - Get Free Report) last posted its earnings results on Tuesday, July 21st. The bank reported $1.09 EPS for the quarter, beating analysts' consensus estimates of $1.03 by $0.06. Orrstown Financial Services had a net margin of 24.00% and a return on equity of 14.66%. The firm had revenue of $64.30 million for the quarter, compared to the consensus estimate of $64.10 million. Equities research analysts expect that Orrstown Financial Services Inc will post 4.29 EPS for the current year.

Orrstown Financial Services Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, August 11th. Shareholders of record on Tuesday, August 4th will be given a dividend of $0.30 per share. The ex-dividend date is Tuesday, August 4th. This represents a $1.20 dividend on an annualized basis and a yield of 2.8%. Orrstown Financial Services's dividend payout ratio is presently 26.97%.

About Orrstown Financial Services

Orrstown Financial Services, Inc is the bank holding company for Orrstown Bank, a community banking organization headquartered in Shippensburg, Pennsylvania. The roots of Orrstown Bank date back to 1865, and the holding company structure was established to support its growth and diversification. As a regional financial institution, Orrstown Financial Services focuses on delivering personalized banking solutions to individuals, families and businesses across Central Pennsylvania.

The company's core offerings include a full suite of deposit products such as checking and savings accounts, money market accounts and certificates of deposit.

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