Red River Bancshares, Inc. (NASDAQ:RRBI) to Issue Dividend Increase - $0.15 Per Share

Key Points

• Red River Bancshares, Inc. announced a quarterly dividend increase to $0.15 per share, up from $0.12, reflecting a 25% rise.
• The expected annual dividend yield will be 0.98%, with a payout ratio of 8.0%, indicating strong earnings coverage.
• Analysts have raised the target price for Red River Bancshares to $62.00, maintaining an "outperform" rating based on solid financial performance.

Red River Bancshares, Inc. (NASDAQ:RRBI - Get Free Report) declared a quarterly dividend on Friday, July 25th, Wall Street Journal reports. Stockholders of record on Monday, September 8th will be paid a dividend of 0.15 per share on Thursday, September 18th. This represents a $0.60 annualized dividend and a dividend yield of 0.98%. The ex-dividend date is Monday, September 8th. This is a 25.0% increase from Red River Bancshares's previous quarterly dividend of $0.12.

Red River Bancshares has a payout ratio of 8.0% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Red River Bancshares to earn $5.52 per share next year, which means the company should continue to be able to cover its $0.48 annual dividend with an expected future payout ratio of 8.7%.

Red River Bancshares Stock Performance

Shares of RRBI stock traded up $0.16 during trading on Friday, hitting $61.00. The company had a trading volume of 5,456 shares, compared to its average volume of 11,542. The firm has a market capitalization of $414.19 million, a P/E ratio of 11.47 and a beta of 0.50. Red River Bancshares has a one year low of $46.33 and a one year high of $64.65. The stock's 50-day moving average price is $59.07 and its 200 day moving average price is $55.29.

Red River Bancshares (NASDAQ:RRBI - Get Free Report) last released its earnings results on Wednesday, April 30th. The company reported $1.52 earnings per share for the quarter, beating analysts' consensus estimates of $1.29 by $0.23. Red River Bancshares had a return on equity of 11.34% and a net margin of 22.64%. The firm had revenue of $29.43 million during the quarter, compared to the consensus estimate of $28.24 million. On average, research analysts anticipate that Red River Bancshares will post 5.28 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Goldman Sachs Group Inc. grew its holdings in shares of Red River Bancshares by 44.5% during the 1st quarter. Goldman Sachs Group Inc. now owns 49,400 shares of the company's stock valued at $2,552,000 after purchasing an additional 15,205 shares during the last quarter. Jane Street Group LLC acquired a new stake in Red River Bancshares in the first quarter valued at approximately $315,000. AQR Capital Management LLC grew its stake in shares of Red River Bancshares by 36.3% during the first quarter. AQR Capital Management LLC now owns 6,703 shares of the company's stock worth $346,000 after buying an additional 1,784 shares during the last quarter. Finally, Strs Ohio acquired a new position in shares of Red River Bancshares during the first quarter worth $26,000. 27.55% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

Separately, Raymond James Financial reissued an "outperform" rating and issued a $62.00 target price (up from $57.00) on shares of Red River Bancshares in a report on Friday, May 2nd.

About Red River Bancshares

Red River Bancshares, Inc operates as a bank holding company for Red River Bank that provides banking products and services to commercial and retail customers in Louisiana. The company provides various deposit products, including checking, saving, money market accounts, and time deposits. It offers commercial real estate loans; one-to-four family mortgage loans and home equity lines of credit; construction and development loans; commercial and industrial loans; small business administration paycheck protection program loans; tax-exempt loans; consumer loans to individuals for personal, family, and household purposes, including secured and unsecured installment and term loans; home mortgage loans; and lines of credit and standby letters of credit.

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