Orrstown Financial Services (NASDAQ:ORRF) Reaches New 52-Week High - Should You Buy?

Key Points

• Orrstown Financial Services hit a new 52-week high, trading as high as $42.54 after closing at $40.97, as shares continued to draw investor interest.
• Analysts are mixed but generally constructive: the stock carries a Moderate Buy consensus with an average price target of $41.67, while recent coverage included both neutral and buy ratings.
• The bank reported solid fundamentals, including better-than-expected quarterly EPS of $1.12, a 2.8% dividend yield, and relatively low debt, while institutional investors own 44.27% of the shares.

Orrstown Financial Services Inc (NASDAQ:ORRF - Get Free Report) reached a new 52-week high during mid-day trading on Thursday . The company traded as high as $42.54 and last traded at $42.3460, with a volume of 73941 shares changing hands. The stock had previously closed at $40.97.

Analysts Set New Price Targets

Several brokerages recently commented on ORRF. Raymond James Financial initiated coverage on shares of Orrstown Financial Services in a report on Thursday, July 9th. They set a "market perform" rating for the company. DA Davidson initiated coverage on shares of Orrstown Financial Services in a research note on Friday, May 15th. They set a "neutral" rating and a $41.00 price objective for the company. Finally, Weiss Ratings reaffirmed a "buy (b)" rating on shares of Orrstown Financial Services in a research report on Tuesday, July 7th. Three analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $41.67.

Orrstown Financial Services Stock Performance

The company has a debt-to-equity ratio of 0.06, a quick ratio of 0.87 and a current ratio of 0.87. The stock's fifty day moving average price is $38.48 and its 200-day moving average price is $37.22. The company has a market capitalization of $828.19 million, a P/E ratio of 9.64 and a beta of 0.70.

Orrstown Financial Services (NASDAQ:ORRF - Get Free Report) last posted its quarterly earnings results on Wednesday, April 22nd. The bank reported $1.12 EPS for the quarter, topping analysts' consensus estimates of $1.04 by $0.08. The business had revenue of $64.58 million during the quarter, compared to analysts' expectations of $63.20 million. Orrstown Financial Services had a return on equity of 14.75% and a net margin of 23.58%. As a group, research analysts anticipate that Orrstown Financial Services Inc will post 4.29 EPS for the current fiscal year.

Orrstown Financial Services Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, May 12th. Stockholders of record on Tuesday, May 5th were paid a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a dividend yield of 2.8%. The ex-dividend date was Tuesday, May 5th. Orrstown Financial Services's payout ratio is currently 27.46%.

Institutional Investors Weigh In On Orrstown Financial Services

Large investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. increased its holdings in shares of Orrstown Financial Services by 2.5% in the third quarter. Vanguard Group Inc. now owns 1,115,128 shares of the bank's stock valued at $37,892,000 after purchasing an additional 27,125 shares during the last quarter. Dimensional Fund Advisors LP boosted its holdings in shares of Orrstown Financial Services by 8.3% during the 1st quarter. Dimensional Fund Advisors LP now owns 900,674 shares of the bank's stock worth $32,496,000 after buying an additional 68,935 shares during the period. Wellington Management Group LLP boosted its holdings in shares of Orrstown Financial Services by 9.2% during the 3rd quarter. Wellington Management Group LLP now owns 608,402 shares of the bank's stock worth $20,674,000 after buying an additional 51,140 shares during the period. Millennium Management LLC grew its stake in 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 buying an additional 182,709 shares during the last quarter. Finally, Assenagon Asset Management S.A. acquired a new position in Orrstown Financial Services in the 1st quarter valued at about $10,743,000. Institutional investors own 44.27% of the company's stock.

Orrstown Financial Services Company Profile

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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