Towne Bank (NASDAQ:TOWN) Share Price Breaks Below 200-Day Moving Average - Should You Sell?

Key Points

• Towne Bank shares briefly fell below their 200-day moving average, reaching $35.69 before trading at $36.74, with 631,590 shares changing hands.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and a target price of $39.50, roughly above the reported trading price.
• The bank reported quarterly EPS of $0.78, narrowly missing estimates, while revenue slightly exceeded expectations. Towne Bank also pays a quarterly dividend of $0.28 per share, representing a 3.0% annualized yield.

Towne Bank (NASDAQ:TOWN - Get Free Report) passed below its two hundred day moving average during trading on Thursday. The stock has a two hundred day moving average of $35.97 and traded as low as $35.69. Towne Bank shares last traded at $36.74, with a volume of 631,590 shares changing hands.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on TOWN shares. Weiss Ratings lowered Towne Bank from a "buy (a-)" rating to a "buy (b+)" rating in a research note on Friday, October 2nd. Zacks Research raised shares of Towne Bank from a "strong sell" rating to a "hold" rating in a report on Monday, June 29th. Two investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $39.50.

Towne Bank Trading Up 2.6%

The company has a current ratio of 0.90, a quick ratio of 0.88 and a debt-to-equity ratio of 0.04. The business has a 50 day moving average of $36.56 and a 200-day moving average of $35.97. The firm has a market capitalization of $2.90 billion, a P/E ratio of 10.32 and a beta of 0.71.

Towne Bank (NASDAQ:TOWN - Get Free Report) last released its quarterly earnings data on Thursday, July 23rd. The bank reported $0.78 EPS for the quarter, missing the consensus estimate of $0.79 by ($0.01). The company had revenue of $245.72 million during the quarter, compared to analyst estimates of $245.33 million. Towne Bank had a net margin of 25.64% and a return on equity of 9.60%. Analysts anticipate that Towne Bank will post 3.13 EPS for the current fiscal year.

Towne Bank Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, October 9th. Investors of record on Friday, September 25th were given a dividend of $0.28 per share. The ex-dividend date of this dividend was Friday, September 25th. This represents a $1.12 dividend on an annualized basis and a yield of 3.0%. Towne Bank's dividend payout ratio is currently 31.46%.

Institutional Investors Weigh In On Towne Bank

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Allworth Financial LP raised its position in Towne Bank by 1.9% in the second quarter. Allworth Financial LP now owns 18,032 shares of the bank's stock valued at $653,000 after purchasing an additional 342 shares during the last quarter. Farther Finance Advisors LLC grew its holdings in shares of Towne Bank by 75.2% during the third quarter. Farther Finance Advisors LLC now owns 990 shares of the bank's stock worth $35,000 after purchasing an additional 425 shares during the last quarter. Nisa Investment Advisors LLC increased its stake in shares of Towne Bank by 15.2% in the third quarter. Nisa Investment Advisors LLC now owns 3,290 shares of the bank's stock valued at $118,000 after buying an additional 435 shares during the period. State of Alaska Department of Revenue raised its holdings in Towne Bank by 17.2% in the 3rd quarter. State of Alaska Department of Revenue now owns 3,651 shares of the bank's stock valued at $130,000 after buying an additional 535 shares during the last quarter. Finally, Public Employees Retirement System of Ohio bought a new position in Towne Bank in the 2nd quarter valued at approximately $33,000. 55.99% of the stock is currently owned by institutional investors.

Towne Bank Company Profile

TowneBank is a financial services company headquartered in coastal Virginia. Founded in 1999, the company operates as a community-focused banking organization serving individuals, families and businesses in southeastern Virginia and northeastern North Carolina.

Through its banking operations, TowneBank offers deposit accounts, consumer and commercial lending, mortgages, cash-management services, online and mobile banking, and other traditional financial products. Its business banking services support companies with commercial real estate financing, business loans, treasury management and related banking needs.

Beyond traditional banking, TowneBank provides services through affiliated businesses in areas that include mortgage lending, insurance, wealth management, real estate brokerage and property management.

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