OceanFirst Financial (NASDAQ:OCFC) Stock Jumps 5% Following Earnings Beat

Key Points

• OceanFirst Financial beat quarterly expectations: EPS came in at $0.48 versus the $0.40 consensus, while revenue reached $185.1 million compared with estimates of $177.8 million. Shares rose about 5% following the report.
• Core banking metrics improved: Loans and deposits grew sequentially, and net interest margin expanded to 3.18% from 3.05% in the prior quarter and 2.91% a year earlier.
• Profitability remains pressured by acquisition costs: GAAP net income available to common shareholders declined year over year, partly because of $37.1 million in merger-related expenses. The company maintained its $0.20 quarterly dividend, equivalent to $0.80 annually.

OceanFirst Financial Corp. (NASDAQ:OCFC - Get Free Report)'s stock price traded up 5% during mid-day trading on Wednesday following a stronger than expected earnings report. The company traded as high as $17.48 and last traded at $17.5050. 203,920 shares were traded during mid-day trading, a decline of 77% from the average daily volume of 898,631 shares. The stock had previously closed at $16.67.

The savings and loans company reported $0.48 EPS for the quarter, topping analysts' consensus estimates of $0.40 by $0.08. The company had revenue of $185.13 million during the quarter, compared to the consensus estimate of $177.79 million.

OceanFirst Financial Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, November 20th. Stockholders of record on Monday, November 9th will be given a dividend of $0.20 per share. The ex-dividend date is Monday, November 9th. This represents a $0.80 annualized dividend and a dividend yield of 4.6%. OceanFirst Financial's dividend payout ratio (DPR) is presently 94.12%.

More OceanFirst Financial News

Here are the key news stories impacting OceanFirst Financial this week:

• Positive Sentiment: Quarterly results exceeded expectations. OceanFirst reported adjusted earnings of $0.48 per share, above the $0.40 consensus estimate, while revenue reached approximately $185.1 million versus expectations of $177.8 million. Adjusted EPS also increased from $0.36 a year earlier. OceanFirst Financial Q3 Earnings and Revenues Top Estimates
• Positive Sentiment: Loan and deposit growth improved. Total loans increased $215.7 million sequentially, including $325 million of commercial-loan growth, while deposits rose $319.3 million to $18.1 billion. Net interest margin expanded to 3.18% from 3.05% in the prior quarter and 2.91% a year earlier. OceanFirst Financial Reports Improved Core Earnings and Loan Growth
• Positive Sentiment: The quarterly dividend was maintained. The company declared a $0.20-per-share dividend payable November 20 to shareholders of record November 9. The annualized payout is $0.80 per share, representing an indicated yield of about 4.8% based on the provided stock information. OceanFirst Financial Announces Third Quarter Financial Results
• Neutral Sentiment: Merger integration is progressing but remains costly. OceanFirst completed the Flushing acquisition’s core-system conversion and integration in September, but the quarter included $37.1 million in merger-related expenses.
• Negative Sentiment: GAAP profitability declined year over year. Net income available to common stockholders fell to $16.5 million, or $0.17 per diluted share, from $17.3 million, or $0.30, a year earlier. Nine-month net income dropped to $33.9 million from $54.0 million, partly reflecting acquisition-related costs. OceanFirst Financial Reports Third-Quarter and Nine-Month Results

Analyst Ratings Changes

A number of equities research analysts have issued reports on the company. Piper Sandler decreased their price objective on OceanFirst Financial from $21.00 to $18.00 and set a "neutral" rating on the stock in a research report on Tuesday, October 6th. Weiss Ratings downgraded OceanFirst Financial from a "hold (c+)" rating to a "hold (c)" rating in a research report on Friday, September 25th. Four research analysts have rated the stock with a Hold rating. According to MarketBeat, OceanFirst Financial has a consensus rating of "Hold" and an average price target of $19.00.

Insiders Place Their Bets

In other OceanFirst Financial news, EVP Brian Schaeffer sold 5,500 shares of the stock in a transaction on Monday, August 31st. The stock was sold at an average price of $18.91, for a total transaction of $104,005.00. Following the sale, the executive vice president owned 83,068 shares of the company's stock, valued at approximately $1,570,815.88. This trade represents a 6.21% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director John R. Buran sold 113,463 shares of the firm's stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $19.40, for a total value of $2,201,182.20. The disclosure for this sale is available in the SEC filing. Insiders own 5.40% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Public Employees Retirement System of Ohio acquired a new stake in shares of OceanFirst Financial during the second quarter worth $25,000. Northwestern Mutual Wealth Management Co. purchased a new stake in shares of OceanFirst Financial during the second quarter valued at $27,000. Nykredit A S purchased a new stake in shares of OceanFirst Financial during the second quarter valued at $30,000. GAMMA Investing LLC increased its position in shares of OceanFirst Financial by 174.8% in the 2nd quarter. GAMMA Investing LLC now owns 1,918 shares of the savings and loans company's stock valued at $37,000 after acquiring an additional 1,220 shares during the period. Finally, State of Alaska Department of Revenue increased its position in shares of OceanFirst Financial by 62.7% in the 3rd quarter. State of Alaska Department of Revenue now owns 3,784 shares of the savings and loans company's stock valued at $62,000 after acquiring an additional 1,458 shares during the period. 70.98% of the stock is owned by institutional investors and hedge funds.

OceanFirst Financial Trading Up 5.2%

The firm has a 50-day moving average of $17.58 and a 200-day moving average of $18.47. The stock has a market capitalization of $1.69 billion, a price-to-earnings ratio of 20.61 and a beta of 1.02.

About OceanFirst Financial

OceanFirst Financial Corp. NASDAQ: OCFC is the bank holding company for OceanFirst Bank, a full-service community bank headquartered in Toms River, New Jersey. The company provides banking and financial services to individuals, families, businesses, and nonprofit organizations.

OceanFirst Bank offers deposit products, residential and commercial real estate lending, business loans, consumer loans, mortgage services, online and mobile banking, and cash-management solutions. Through its wealth-management operations, the company also provides investment management, trust, and financial-planning services.

Founded in 1902, OceanFirst has grown from a savings institution serving the Jersey Shore into a regional banking organization.

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