Shore Bancshares Inc (NASDAQ:SHBI) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts give Shore Bancshares a “Moderate Buy” consensus: Three of five analysts rate the stock a buy, while two recommend holding it. The average 12-month price target is $26.00, above the recent $23.14 share price.
• Shore Bancshares exceeded quarterly expectations, reporting $0.60 in EPS versus the $0.50 consensus estimate and revenue of $61.75 million versus $60.42 million expected.
• The bank authorized a $30 million share buyback, covering up to 4.5% of outstanding shares, and declared a quarterly dividend of $0.14 per share, representing a 2.4% annualized yield.

Shares of Shore Bancshares Inc (NASDAQ:SHBI - Get Free Report) have earned a consensus rating of "Moderate Buy" from the five analysts that are presently covering the firm, MarketBeat Ratings reports. Two research analysts have rated the stock with a hold recommendation and three have issued a buy recommendation on the company. The average 12 month target price among brokers that have issued ratings on the stock in the last year is $26.00.

Several research analysts have weighed in on the company. Hovde Group upped their target price on Shore Bancshares from $23.50 to $26.50 and gave the stock an "outperform" rating in a research report on Monday, July 27th. Keefe, Bruyette & Woods raised their price target on Shore Bancshares from $22.00 to $25.00 and gave the company a "market perform" rating in a research report on Tuesday, July 28th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Shore Bancshares in a research report on Friday, July 17th. Zacks Research cut Shore Bancshares from a "strong-buy" rating to a "hold" rating in a report on Tuesday, June 30th. Finally, Piper Sandler upped 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.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in SHBI. EverSource Wealth Advisors LLC bought a new position in Shore Bancshares in the second quarter valued at approximately $31,000. Allworth Financial LP bought a new stake in Shore Bancshares during the 2nd quarter worth approximately $41,000. Geneos Wealth Management Inc. bought a new stake in Shore Bancshares in the 4th quarter valued at $48,000. Legal & General Group Plc bought a new stake in shares of Shore Bancshares in the second quarter valued at about $70,000. Finally, Tower Research Capital LLC TRC grew its holdings in shares of Shore Bancshares by 239.1% during the second quarter. Tower Research Capital LLC TRC now owns 4,500 shares of the bank's stock worth $71,000 after buying an additional 3,173 shares in the last quarter. 59.76% of the stock is currently owned by institutional investors and hedge funds.

Shore Bancshares Trading Up 0.4%

Shore Bancshares stock opened at $23.14 on Friday. Shore Bancshares has a 1 year low of $14.93 and a 1 year high of $24.89. The company has a market cap of $772.18 million, a P/E ratio of 11.69 and a beta of 0.81. 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's 50-day moving average is $23.22 and its 200-day moving average is $20.73.

Shore Bancshares (NASDAQ:SHBI - Get Free Report) last released its quarterly earnings results on Thursday, July 23rd. The bank reported $0.60 EPS for the quarter, topping analysts' consensus estimates of $0.50 by $0.10. Shore Bancshares had a net margin of 19.15% and a return on equity of 12.11%. The company had revenue of $61.75 million for the quarter, compared to the consensus estimate of $60.42 million. On average, equities analysts expect that Shore Bancshares will post 2.26 earnings per share for the current year.

Shore Bancshares declared that its Board of Directors has initiated a share buyback program on Thursday, May 21st that authorizes the company to buyback $30.00 million in outstanding shares. This buyback authorization authorizes the bank to repurchase up to 4.5% of its stock through open market purchases. Stock buyback programs are typically a sign that the company's management believes its shares are undervalued.

Shore Bancshares Announces Dividend

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

Shore Bancshares Company Profile

Shore Bancshares, Inc NASDAQ: SHBI is the bank holding company for Shore Community Bank, a commercial bank headquartered in Mount Holly, New Jersey. The company provides a full suite of banking and financial services to individuals and businesses, including deposit accounts, consumer and commercial lending, mortgage financing, and cash management solutions. Through its branch network, Shore Bancshares focuses on delivering community-oriented banking services with an emphasis on personalized customer relationships.

Shore Community Bank's lending portfolio includes commercial real estate, construction loans, agricultural loans, small business loans under government-sponsored programs, and conventional residential mortgages.

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.

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