Shore Bancshares (NASDAQ:SHBI) Releases Quarterly Earnings Results, Beats Expectations By $0.06 EPS

Key Points

• Shore Bancshares beat quarterly expectations, reporting EPS of $0.56 versus the $0.50 consensus and revenue of $61.75 million, also topping estimates.
• The company raised its quarterly dividend to $0.14 per share from $0.12, bringing the annualized payout to $0.56 and the yield to about 2.4%.
• Shore Bancshares also announced a $30 million stock repurchase program, authorizing buybacks of up to 4.5% of outstanding shares, while analysts currently have a consensus Moderate Buy rating.

Shore Bancshares (NASDAQ:SHBI - Get Free Report) posted its earnings results on Thursday. The bank reported $0.56 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.50 by $0.06, FiscalAI reports. The business had revenue of $61.75 million during the quarter, compared to analyst estimates of $60.42 million. Shore Bancshares had a return on equity of 11.84% and a net margin of 18.20%.

Shore Bancshares Stock Up 0.1%

Shares of Shore Bancshares stock traded up $0.03 during trading on Thursday, reaching $22.90. The company had a trading volume of 255,485 shares, compared to its average volume of 227,914. The company has a debt-to-equity ratio of 0.15, a quick ratio of 0.94 and a current ratio of 0.95. The company has a market cap of $766.14 million, a price-to-earnings ratio of 12.18 and a beta of 0.82. Shore Bancshares has a fifty-two week low of $14.93 and a fifty-two week high of $23.68. The firm's fifty day moving average is $21.76 and its 200-day moving average is $19.88.

Shore Bancshares Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, June 17th. Shareholders of record on Wednesday, June 3rd were issued a dividend of $0.14 per share. The ex-dividend date was Wednesday, June 3rd. This represents a $0.56 annualized dividend and a yield of 2.4%. This is a boost from Shore Bancshares's previous quarterly dividend of $0.12. Shore Bancshares's dividend payout ratio (DPR) is presently 29.79%.

Analyst Ratings Changes

SHBI has been the subject of a number of analyst reports. Keefe, Bruyette & Woods restated a "market perform" rating and issued a $20.00 price target on shares of Shore Bancshares in a report on Thursday, April 9th. Piper Sandler lifted their price objective on shares of Shore Bancshares from $22.00 to $24.00 and gave the company an "overweight" rating in a research note on Friday, June 26th. Weiss Ratings reissued a "buy (b)" rating on shares of Shore Bancshares in a research report on Friday, July 17th. Finally, Zacks Research downgraded shares of Shore Bancshares from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, June 30th. Three research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $22.00.

Shore Bancshares announced that its board has initiated a stock repurchase plan on Thursday, May 21st that authorizes the company to repurchase $30.00 million in outstanding shares. This repurchase authorization authorizes the bank to purchase up to 4.5% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's board of directors believes its stock is undervalued.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. Mercer Global Advisors Inc. ADV lifted its holdings in Shore Bancshares by 29.6% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 21,691 shares of the bank's stock worth $383,000 after purchasing an additional 4,958 shares during the period. Empowered Funds LLC raised its position in shares of Shore Bancshares by 10.6% during the 4th quarter. Empowered Funds LLC now owns 154,617 shares of the bank's stock worth $2,734,000 after buying an additional 14,850 shares in the last quarter. XTX Topco Ltd lifted its stake in shares of Shore Bancshares by 96.9% in the 4th quarter. XTX Topco Ltd now owns 19,878 shares of the bank's stock worth $351,000 after acquiring an additional 9,782 shares during the period. Wellington Management Group LLP boosted its holdings in shares of Shore Bancshares by 7.9% in the fourth quarter. Wellington Management Group LLP now owns 1,150,208 shares of the bank's stock valued at $20,336,000 after acquiring an additional 84,298 shares in the last quarter. Finally, Millennium Management LLC boosted its holdings in shares of Shore Bancshares by 152.2% in the fourth quarter. Millennium Management LLC now owns 187,972 shares of the bank's stock valued at $3,323,000 after acquiring an additional 113,446 shares in the last quarter. Institutional investors own 59.76% of the company's stock.

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.

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