ChoiceOne Financial Services (NASDAQ:COFS) Reaches New 12-Month High on Better-Than-Expected Earnings

Key Points

• ChoiceOne Financial Services shares reached a new 52-week high of $35.61 after the company reported quarterly EPS of $1.05, exceeding analyst expectations of $0.93. Revenue was $45.19 million, also above the $44.50 million consensus estimate.
• The company declared a quarterly dividend of $0.29, equivalent to $1.16 annually and a 3.2% yield; its payout ratio is 31.96%.
• Analyst sentiment is positive, with a consensus rating of “Moderate Buy” and an average price target of $36.50, while institutional investors own 19.9% of the company.

Shares of ChoiceOne Financial Services, Inc. (NASDAQ:COFS - Get Free Report) hit a new 52-week high during mid-day trading on Friday after the company announced better than expected quarterly earnings. The stock traded as high as $35.61 and last traded at $35.5790, with a volume of 1,571 shares. The stock had previously closed at $35.00.

The company reported $1.05 earnings per share for the quarter, beating analysts' consensus estimates of $0.93 by $0.12. ChoiceOne Financial Services had a return on equity of 12.04% and a net margin of 22.77%. The company had revenue of $45.19 million for the quarter, compared to analyst estimates of $44.50 million.

ChoiceOne Financial Services Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th were given a $0.29 dividend. The ex-dividend date was Tuesday, September 15th. This represents a $1.16 dividend on an annualized basis and a dividend yield of 3.2%. ChoiceOne Financial Services's dividend payout ratio (DPR) is currently 31.96%.

Analysts Set New Price Targets

COFS has been the topic of several analyst reports. Weiss Ratings reissued a "buy (b)" rating on shares of ChoiceOne Financial Services in a research report on Friday, September 25th. Hovde Group raised their target price on ChoiceOne Financial Services from $32.00 to $35.00 and gave the stock a "market perform" rating in a research report on Monday, July 27th. Finally, DA Davidson upped their target price on ChoiceOne Financial Services from $36.00 to $38.00 and gave the company a "buy" rating in a report on Tuesday, July 28th. Two research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, ChoiceOne Financial Services presently has a consensus rating of "Moderate Buy" and an average price target of $36.50.

Institutional Investors Weigh In On ChoiceOne Financial Services

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new position in shares of ChoiceOne Financial Services during the 2nd quarter valued at approximately $36,957,000. The Manufacturers Life Insurance Company purchased a new position in ChoiceOne Financial Services in the second quarter worth approximately $7,466,000. Dimensional Fund Advisors LP raised its stake in ChoiceOne Financial Services by 18.5% in the first quarter. Dimensional Fund Advisors LP now owns 240,425 shares of the company's stock valued at $6,760,000 after buying an additional 37,514 shares in the last quarter. Jacobs Asset Management LLC grew its position in shares of ChoiceOne Financial Services by 19.7% in the 1st quarter. Jacobs Asset Management LLC now owns 196,227 shares of the company's stock valued at $5,518,000 after buying an additional 32,330 shares during the last quarter. Finally, Bank of New York Mellon Corp acquired a new position in ChoiceOne Financial Services in the 2nd quarter valued at about $2,216,000. Institutional investors own 19.90% of the company's stock.

ChoiceOne Financial Services Stock Up 4.7%

The company has a market capitalization of $548.30 million, a PE ratio of 10.10 and a beta of 0.61. The firm's 50-day simple moving average is $33.35 and its 200 day simple moving average is $31.47. The company has a debt-to-equity ratio of 0.71, a quick ratio of 0.87 and a current ratio of 0.87.

About ChoiceOne Financial Services

ChoiceOne Financial Services, Inc NASDAQ: COFS is the bank holding company for ChoiceOne Bank, a community banking organization headquartered in Sparta, Michigan. The company serves individuals, families, farmers and businesses through a network of branches and digital banking channels primarily across western and central Michigan.

ChoiceOne Bank provides a range of traditional banking products and services, including checking and savings accounts, certificates of deposit, residential mortgages, home equity financing, consumer loans and commercial lending.

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