Dime Community Bancshares (NASDAQ:DCOM) Sets New 52-Week High - Still a Buy?

Key Points

• Dime Community Bancshares reached a new 52-week high, trading as high as $44.23 and last at $43.13, up from its prior close of $42.22.
• The bank beat quarterly estimates, reporting EPS of $0.91 versus $0.86 expected and revenue of $135.35 million versus $131.16 million. Analysts’ consensus rating is “Moderate Buy,” with an average price target of $45.50.
• The company’s quarterly dividend equates to an annualized $1.00 per share, or a 2.3% yield. Insiders sold 193,709 shares worth about $8.1 million over the past three months.

Dime Community Bancshares, Inc. (NASDAQ:DCOM - Get Free Report) shares hit a new 52-week high during mid-day trading on Wednesday. The company traded as high as $44.23 and last traded at $43.13, with a volume of 15,348 shares. The stock had previously closed at $42.22.

Analysts Set New Price Targets

DCOM has been the subject of a number of recent analyst reports. Keefe, Bruyette & Woods lifted their target price on Dime Community Bancshares from $47.00 to $49.00 and gave the company an "outperform" rating in a report on Wednesday, October 21st. Piper Sandler reiterated an "overweight" rating and set a $47.00 price target (up from $45.00) on shares of Dime Community Bancshares in a research report on Wednesday, October 21st. Finally, DA Davidson set a $50.00 price target on shares of Dime Community Bancshares in a report on Thursday, October 22nd. Four equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $45.50.

Dime Community Bancshares Stock Up 2.7%

The stock's fifty day moving average price is $40.39 and its 200 day moving average price is $37.61. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 0.57. The stock has a market cap of $1.91 billion, a P/E ratio of 18.34 and a beta of 1.01.

Dime Community Bancshares (NASDAQ:DCOM - Get Free Report) last posted its quarterly earnings data on Tuesday, October 20th. The savings and loans company reported $0.91 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.86 by $0.05. The company had revenue of $135.35 million during the quarter, compared to the consensus estimate of $131.16 million. Dime Community Bancshares had a net margin of 15.15% and a return on equity of 9.12%. During the same period in the previous year, the firm posted $0.59 EPS. As a group, research analysts forecast that Dime Community Bancshares, Inc. will post 3.06 earnings per share for the current fiscal year.

Dime Community Bancshares Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, October 23rd. Shareholders of record on Friday, October 16th were paid a dividend of $0.25 per share. The ex-dividend date of this dividend was Friday, October 16th. This represents a $1.00 annualized dividend and a yield of 2.3%. Dime Community Bancshares's payout ratio is 32.47%.

Insider Transactions at Dime Community Bancshares

In other news, CTO Michael Fegan sold 2,355 shares of the company's stock in a transaction dated Thursday, October 22nd. The stock was sold at an average price of $41.81, for a total value of $98,462.55. Following the completion of the transaction, the chief technology officer directly owned 25,618 shares in the company, valued at approximately $1,071,088.58. This represents a 8.42% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Basswood Capital Management, L sold 90,000 shares of the firm's stock in a transaction dated Friday, October 23rd. The shares were sold at an average price of $42.68, for a total value of $3,841,200.00. Following the transaction, the director directly owned 5,411 shares in the company, valued at approximately $230,941.48. This represents a 94.33% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 193,709 shares of company stock worth $8,100,891. 7.40% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in DCOM. BlackRock Inc. bought a new stake in Dime Community Bancshares in the second quarter worth $251,937,000. Basswood Capital Management L.L.C. bought a new position in shares of Dime Community Bancshares during the second quarter valued at about $79,106,000. The Manufacturers Life Insurance Company bought a new position in shares of Dime Community Bancshares during the second quarter valued at about $18,911,000. Bank of New York Mellon Corp purchased a new position in shares of Dime Community Bancshares in the second quarter worth about $14,342,000. Finally, Bank of America Corp DE purchased a new position in shares of Dime Community Bancshares in the second quarter worth about $9,631,000. 75.27% of the stock is owned by hedge funds and other institutional investors.

Dime Community Bancshares Company Profile

Dime Community Bancshares, Inc is the bank holding company for Dime Community Bank, a full-service commercial bank serving businesses, individuals and local communities in the New York metropolitan area. The company's primary markets include Long Island and New York City, with banking offices across Brooklyn, Queens, Manhattan, Nassau County and Suffolk County.

Dime Community Bank provides commercial and residential real estate lending, commercial and industrial loans, construction financing, residential mortgages and consumer loans.

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