Red River Bancshares, Inc. (NASDAQ:RRBI) Increases Dividend to $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) announced a quarterly dividend on Friday, July 25th, Wall Street Journal reports. Shareholders of record on Monday, September 8th will be given a dividend of 0.15 per share on Thursday, September 18th. This represents a $0.60 annualized dividend and a yield of 0.99%. The ex-dividend date of this dividend 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% meaning its dividend is sufficiently covered by earnings. 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 Down 0.8%

RRBI stock traded down $0.50 during trading hours on Tuesday, hitting $60.35. The company's stock had a trading volume of 10,446 shares, compared to its average volume of 17,395. The company has a market capitalization of $409.78 million, a PE ratio of 11.34 and a beta of 0.50. Red River Bancshares has a 12 month low of $46.33 and a 12 month high of $64.65. The stock has a 50 day moving average price of $59.29 and a two-hundred day moving average price of $55.51.

Red River Bancshares (NASDAQ:RRBI - Get Free Report) last posted its earnings results on Wednesday, April 30th. The company reported $1.52 EPS for the quarter, topping the consensus estimate of $1.29 by $0.23. The company had revenue of $29.43 million during the quarter, compared to the consensus estimate of $28.24 million. Red River Bancshares had a net margin of 22.64% and a return on equity of 11.34%. Sell-side analysts expect that Red River Bancshares will post 5.28 earnings per share for the current year.

Institutional Trading of Red River Bancshares

Large investors have recently modified their holdings of the company. Strs Ohio bought a new stake in shares of Red River Bancshares during the 1st quarter worth $26,000. Jane Street Group LLC bought a new stake in shares of Red River Bancshares during the 1st quarter worth $315,000. AQR Capital Management LLC boosted its holdings in shares of Red River Bancshares by 36.3% during the 1st 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 period. Finally, Goldman Sachs Group Inc. boosted 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 worth $2,552,000 after buying an additional 15,205 shares during the period. 27.55% of the stock is owned by institutional investors.

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 research 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.