First United (NASDAQ:FUNC) Share Price Crosses Above 200 Day Moving Average - Here's Why

Key Points

• First United shares broke above their 200-day moving average, reaching $44.80 and last trading at $44.24, compared with the $41.80 long-term average.
• Analyst sentiment remains generally positive: the stock carries a consensus “Buy” rating and a $49.50 price target, while Raymond James raised its target to $50.00.
• The bank exceeded quarterly earnings expectations with EPS of $1.13 versus $1.05 expected and increased its quarterly dividend to $0.28 per share, implying a 2.5% yield.

Shares of First United Corporation (NASDAQ:FUNC - Get Free Report) passed above its 200-day moving average during trading on Friday. The stock has a 200-day moving average of $41.80 and traded as high as $44.80. First United shares last traded at $44.24, with a volume of 12,730 shares.

Analysts Set New Price Targets

A number of brokerages recently issued reports on FUNC. Raymond James Financial increased their target price on shares of First United from $44.00 to $50.00 and gave the company an "outperform" rating in a research report on Wednesday, July 1st. Weiss Ratings restated a "buy (b)" rating on shares of First United in a research report on Tuesday, October 6th. Wall Street Zen cut shares of First United from a "buy" rating to a "hold" rating in a report on Saturday, August 15th. Finally, Hovde Group reiterated an "outperform" rating and issued a $49.00 price objective on shares of First United in a report on Thursday, July 23rd. Three investment analysts have rated the stock with a Buy rating. Based on data from MarketBeat, First United has an average rating of "Buy" and a consensus price target of $49.50.

First United Stock Performance

The company has a fifty day moving average price of $43.83 and a two-hundred day moving average price of $41.80. The firm has a market cap of $285.35 million, a price-to-earnings ratio of 11.46 and a beta of 0.52. The company has a debt-to-equity ratio of 0.15, a current ratio of 0.91 and a quick ratio of 0.91.

First United (NASDAQ:FUNC - Get Free Report) last released its earnings results on Monday, July 20th. The bank reported $1.13 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.05 by $0.08. First United had a return on equity of 13.69% and a net margin of 20.05%. The firm had revenue of $65.27 million for the quarter, compared to analyst estimates of $23.55 million. As a group, equities research analysts expect that First United Corporation will post 4.50 EPS for the current year.

First United Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, November 2nd. Stockholders of record on Monday, October 19th will be given a dividend of $0.28 per share. This is a positive change from First United's previous quarterly dividend of $0.26. The ex-dividend date is Monday, October 19th. This represents a $1.12 annualized dividend and a dividend yield of 2.5%. First United's payout ratio is 26.94%.

Insider Activity

In other news, EVP Robert L. Fisher II sold 5,250 shares of First United stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $45.29, for a total value of $237,772.50. Following the transaction, the executive vice president owned 9,105 shares of the company's stock, valued at $412,365.45. The trade was a 36.57% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, EVP Keith Sanders sold 5,000 shares of First United stock in a transaction that occurred on Thursday, July 23rd. The stock was sold at an average price of $43.68, for a total transaction of $218,400.00. Following the completion of the transaction, the executive vice president directly owned 10,342 shares in the company, valued at $451,738.56. This represents a 32.59% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders acquired 280 shares of company stock worth $12,816 and sold 11,250 shares worth $500,752. Insiders own 8.10% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in FUNC. AdvisorNet Financial Inc increased its holdings in shares of First United by 126.8% in the first quarter. AdvisorNet Financial Inc now owns 896 shares of the bank's stock valued at $33,000 after buying an additional 501 shares in the last quarter. Empowered Funds LLC boosted its stake in shares of First United by 6.3% during the 1st quarter. Empowered Funds LLC now owns 38,112 shares of the bank's stock worth $1,396,000 after acquiring an additional 2,243 shares in the last quarter. Trail Ridge Investment Advisors LLC boosted its stake in shares of First United by 62.1% during the 3rd quarter. Trail Ridge Investment Advisors LLC now owns 8,021 shares of the bank's stock worth $343,000 after acquiring an additional 3,073 shares in the last quarter. Hsbc Holdings PLC boosted its stake in shares of First United by 44.2% during the 1st quarter. Hsbc Holdings PLC now owns 11,508 shares of the bank's stock worth $427,000 after acquiring an additional 3,528 shares in the last quarter. Finally, Bank of America Corp DE acquired a new stake in shares of First United during the second quarter worth $201,000. Institutional investors and hedge funds own 33.27% of the company's stock.

About First United

First United Corporation NASDAQ: FUNC is a bank holding company headquartered in Oakland, Maryland. Through its subsidiary, First United Bank & Trust, the company provides community banking services to individuals, families, businesses and organizations.

First United Bank & Trust offers a range of financial products, including checking and savings accounts, certificates of deposit, consumer and commercial loans, mortgage lending, online and mobile banking, and related treasury management services.

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