Shore Bancshares (NASDAQ:SHBI) Shares Gap Down - What's Next?

Key Points

• Shore Bancshares shares fell sharply at the open, dropping from a prior close of $23.38 to $21.61 before recovering to about $22.78.
• Analysts remain generally positive, with a consensus “Moderate Buy” rating and an average price target of $25.75; individual targets range from $25.00 to $26.50.
• The bank’s latest quarterly results met expectations with $0.54 EPS and exceeded revenue estimates, while it continues to pay a $0.14 quarterly dividend, yielding approximately 2.4%.

Shore Bancshares Inc (NASDAQ:SHBI - Get Free Report) shares gapped down prior to trading on Friday. The stock had previously closed at $23.38, but opened at $21.61. Shore Bancshares shares last traded at $22.7810, with a volume of 37,683 shares changing hands.

Analyst Ratings Changes

Several analysts recently issued reports on SHBI shares. Hovde Group upped their price target on shares of Shore Bancshares from $23.50 to $26.50 and gave the company an "outperform" rating in a report on Monday, July 27th. DA Davidson began coverage on Shore Bancshares in a research note on Monday, September 28th. They set a "neutral" rating and a $25.00 price objective on the stock. Piper Sandler boosted their target price on shares of Shore Bancshares from $24.00 to $26.50 and gave the company an "overweight" rating in a research note on Monday, July 27th. Keefe, Bruyette & Woods raised their price target on shares of Shore Bancshares from $22.00 to $25.00 and gave the stock a "market perform" rating in a research report on Tuesday, July 28th. Finally, Weiss Ratings reaffirmed a "buy (b)" rating on shares of Shore Bancshares in a research report on Thursday, October 15th. Three equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, Shore Bancshares has a consensus rating of "Moderate Buy" and a consensus price target of $25.75.

Shore Bancshares Stock Down 1.7%

The company has a debt-to-equity ratio of 0.14, a quick ratio of 0.94 and a current ratio of 0.95. The firm has a 50 day simple moving average of $23.01 and a two-hundred day simple moving average of $22.04. The stock has a market cap of $766.88 million, a P/E ratio of 11.64 and a beta of 0.82.

Shore Bancshares (NASDAQ:SHBI - Get Free Report) last issued its quarterly earnings results on Thursday, October 22nd. The bank reported $0.54 EPS for the quarter, meeting analysts' consensus estimates of $0.54. Shore Bancshares had a return on equity of 12.11% and a net margin of 19.15%. The company had revenue of $62.80 million for the quarter, compared to analyst estimates of $61.31 million. Equities research analysts predict that Shore Bancshares Inc will post 2.25 earnings per share for the current year.

Shore Bancshares Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 16th. Stockholders of record on Wednesday, September 2nd were paid a $0.14 dividend. This represents a $0.56 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date of this dividend was Wednesday, September 2nd. Shore Bancshares's payout ratio is currently 28.28%.

Hedge Funds Weigh In On Shore Bancshares

Hedge funds have recently made changes to their positions in the business. IFP Advisors Inc raised its holdings in shares of Shore Bancshares by 59.8% in the 3rd quarter. IFP Advisors Inc now owns 9,775 shares of the bank's stock worth $219,000 after purchasing an additional 3,659 shares in the last quarter. Sequoia Financial Advisors LLC acquired a new stake in Shore Bancshares during the second quarter valued at approximately $418,000. Integrated Wealth Concepts LLC bought a new stake in Shore Bancshares during the second quarter worth approximately $34,000. Squarepoint Ops LLC bought a new stake in Shore Bancshares during the second quarter worth approximately $633,000. Finally, Allworth Financial LP grew its position in Shore Bancshares by 82.7% in the second quarter. Allworth Financial LP now owns 1,769 shares of the bank's stock worth $41,000 after buying an additional 801 shares during the last quarter. Institutional investors and hedge funds own 59.76% of the company's stock.

Shore Bancshares Company Profile

Shore Bancshares, Inc is a bank holding company headquartered in Easton, Maryland. Through its principal banking subsidiary, Shore United Bank, the company provides a range of financial services to individuals, businesses, nonprofit organizations and local governments.

Shore United Bank offers deposit accounts, consumer and commercial loans, mortgages, home equity financing, cash management and other business banking services. Its offerings also include wealth management, trust and investment services, helping customers manage borrowing, saving, investing and other financial needs.

The company serves communities primarily across Maryland and Delaware, with a network concentrated in the Eastern Shore and expanding into other Maryland markets.

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