Towne Bank (NASDAQ:TOWN) Shares Cross Above Fifty Day Moving Average - What's Next?

Key Points

• Towne Bank shares rose above their 50-day moving average, reaching $37.17 and last trading at $37.12, compared with the moving average of $36.41.
• Analysts maintain a consensus “Moderate Buy” rating with an average price target of $39.50, despite Weiss Ratings downgrading the stock from “buy (a-)” to “buy (b+).”
• The bank exceeded quarterly expectations, reporting $0.91 in EPS versus $0.82 expected and $255.2 million in revenue; it also declared a quarterly dividend of $0.28, representing a 3.0% annualized yield.

Towne Bank (NASDAQ:TOWN - Get Free Report) passed above its 50-day moving average during trading on Monday. The stock has a 50-day moving average of $36.41 and traded as high as $37.17. Towne Bank shares last traded at $37.12, with a volume of 852,441 shares traded.

Analysts Set New Price Targets

Separately, Weiss Ratings downgraded shares of Towne Bank from a "buy (a-)" rating to a "buy (b+)" rating in a report on Friday, October 2nd. Two research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, Towne Bank has a consensus rating of "Moderate Buy" and an average price target of $39.50.

Towne Bank Price Performance

The firm has a 50 day moving average of $36.41 and a 200-day moving average of $35.66. The company has a market cap of $2.93 billion, a P/E ratio of 9.45 and a beta of 0.71. The company has a current ratio of 0.90, a quick ratio of 0.88 and a debt-to-equity ratio of 0.04.

Towne Bank (NASDAQ:TOWN - Get Free Report) last posted its quarterly earnings results on Wednesday, October 28th. The bank reported $0.91 EPS for the quarter, topping analysts' consensus estimates of $0.82 by $0.09. Towne Bank had a return on equity of 10.01% and a net margin of 28.12%. The company had revenue of $255.20 million for the quarter, compared to analysts' expectations of $250.66 million. On average, equities research analysts predict that Towne Bank will post 3.17 EPS for the current year.

Towne Bank Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, October 9th. Shareholders of record on Friday, September 25th were issued a $0.28 dividend. This represents a $1.12 dividend on an annualized basis and a yield of 3.0%. The ex-dividend date was Friday, September 25th. Towne Bank's payout ratio is currently 28.50%.

Institutional Investors Weigh In On Towne Bank

A number of hedge funds have recently made changes to their positions in TOWN. Public Employees Retirement System of Ohio purchased a new position in shares of Towne Bank in the 2nd quarter worth $33,000. Covestor Ltd raised its position in shares of Towne Bank by 46.7% during the 3rd quarter. Covestor Ltd now owns 952 shares of the bank's stock valued at $34,000 after buying an additional 303 shares in the last quarter. Farther Finance Advisors LLC raised its position in shares of Towne Bank by 75.2% during the 3rd quarter. Farther Finance Advisors LLC now owns 990 shares of the bank's stock valued at $35,000 after buying an additional 425 shares in the last quarter. Nykredit A S purchased a new stake in shares of Towne Bank during the 2nd quarter valued at about $45,000. Finally, Fifth Third Bancorp bought a new position in shares of Towne Bank in the 1st quarter valued at about $68,000. 55.99% of the stock is currently owned by hedge funds and other 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.