Orrstown Financial Services (NASDAQ:ORRF) Releases Quarterly Earnings Results, Beats Expectations By $0.08 EPS

Key Points

• Q4 earnings beat: Orrstown reported EPS of $1.12 versus the $1.04 consensus (a $0.08 beat), with a net margin of 22.71% and a return on equity of 14.77%.
• Dividend raised: The company increased its quarterly dividend to $0.30 ($1.20 annualized), implying a 3.2% yield and a dividend payout ratio of 28.71%.
• Valuation and market reaction: Shares fell to $37.74 on lighter volume; the stock has a market cap of about $740.5M and a P/E of 9.03, while analysts have a consensus "Moderate Buy" with an average target of $42.00.

Orrstown Financial Services (NASDAQ:ORRF - Get Free Report) announced its quarterly earnings results on Tuesday. The bank reported $1.12 earnings per share for the quarter, topping the consensus estimate of $1.04 by $0.08, Zacks reports. Orrstown Financial Services had a net margin of 22.71% and a return on equity of 14.77%.

Orrstown Financial Services Stock Performance

Shares of NASDAQ:ORRF traded down $0.95 during trading on Tuesday, hitting $37.74. The stock had a trading volume of 101,007 shares, compared to its average volume of 217,297. Orrstown Financial Services has a 12-month low of $26.80 and a 12-month high of $40.72. The stock has a market capitalization of $740.46 million, a price-to-earnings ratio of 9.03 and a beta of 0.77. The company has a quick ratio of 0.86, a current ratio of 0.87 and a debt-to-equity ratio of 0.06. The stock has a 50-day simple moving average of $36.50 and a two-hundred day simple moving average of $35.84.

Orrstown Financial Services Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, February 17th. Stockholders of record on Tuesday, February 10th were paid a $0.30 dividend. The ex-dividend date was Tuesday, February 10th. This is a positive change from Orrstown Financial Services's previous quarterly dividend of $0.27. This represents a $1.20 annualized dividend and a dividend yield of 3.2%. Orrstown Financial Services's dividend payout ratio (DPR) is 28.71%.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on the stock. Hovde Group upped their price target on shares of Orrstown Financial Services from $40.00 to $42.00 and gave the stock an "outperform" rating in a research report on Monday, February 2nd. Weiss Ratings raised shares of Orrstown Financial Services from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Monday, February 23rd. Three analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat, Orrstown Financial Services has a consensus rating of "Moderate Buy" and an average target price of $42.00.

Insider Activity

In other news, Director Brian D. Brunner acquired 1,000 shares of Orrstown Financial Services stock in a transaction dated Wednesday, March 18th. The stock was purchased at an average cost of $34.02 per share, for a total transaction of $34,020.00. Following the completion of the purchase, the director directly owned 50,529 shares in the company, valued at $1,718,996.58. This trade represents a 2.02% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 4.30% of the stock is currently owned by insiders.

Institutional Trading of Orrstown Financial Services

Hedge funds and other institutional investors have recently made changes to their positions in the business. Quarry LP acquired a new stake in shares of Orrstown Financial Services in the third quarter worth $42,000. Raymond James Financial Inc. acquired a new stake in shares of Orrstown Financial Services in the second quarter worth $45,000. Tower Research Capital LLC TRC increased its stake in shares of Orrstown Financial Services by 86.4% in the second quarter. Tower Research Capital LLC TRC now owns 1,748 shares of the bank's stock worth $56,000 after acquiring an additional 810 shares during the period. Russell Investments Group Ltd. increased its stake in shares of Orrstown Financial Services by 220.4% in the third quarter. Russell Investments Group Ltd. now owns 2,070 shares of the bank's stock worth $70,000 after acquiring an additional 1,424 shares during the period. Finally, BNP Paribas Financial Markets increased its stake in shares of Orrstown Financial Services by 120.7% in the third quarter. BNP Paribas Financial Markets now owns 4,061 shares of the bank's stock worth $138,000 after acquiring an additional 2,221 shares during the period. Institutional investors and hedge funds own 44.27% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.