SR Bancorp, Inc. (NASDAQ:SRBK) Sees Significant Growth in Short Interest

Key Points

• Short interest jumped 34.0% to 624,312 shares as of March 31, representing 8.1% of shares sold short and a high days-to-cover ratio of 19.4, signaling elevated bearish positioning (and potential squeeze risk).
• Quarterly dividend declared: SR Bancorp set a $0.05 quarterly dividend (annualized $0.20) with an ex-dividend date of March 31 and a yield of about 1.1%, and a payout ratio of 55.6%.
• CFO insider buying: CFO Harris M. Faqueri purchased 3,000 shares at $16.40 (a 30% increase to his stake), and corporate insiders now own 7.82% of the company.

SR Bancorp, Inc. (NASDAQ:SRBK - Get Free Report) was the recipient of a significant growth in short interest during the month of March. As of March 31st, there was short interest totaling 624,312 shares, a growth of 34.0% from the March 15th total of 465,840 shares. Currently, 8.1% of the company's shares are sold short. Based on an average daily volume of 32,140 shares, the days-to-cover ratio is presently 19.4 days.

SR Bancorp Stock Performance

NASDAQ:SRBK remained flat at $17.74 on Wednesday. The company's stock had a trading volume of 10,340 shares, compared to its average volume of 36,076. The stock has a market capitalization of $147.95 million, a PE ratio of 49.28 and a beta of 0.48. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.04 and a current ratio of 1.04. The business has a fifty day moving average of $17.07 and a two-hundred day moving average of $16.15. SR Bancorp has a 12 month low of $12.14 and a 12 month high of $18.04.

SR Bancorp (NASDAQ:SRBK - Get Free Report) last announced its quarterly earnings results on Wednesday, January 28th. The company reported $0.09 EPS for the quarter, missing the consensus estimate of $0.11 by ($0.02). The firm had revenue of $8.37 million for the quarter, compared to analyst estimates of $8.50 million. SR Bancorp had a return on equity of 1.27% and a net margin of 5.82%.

SR Bancorp Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 15th. Shareholders of record on Tuesday, March 31st will be paid a dividend of $0.05 per share. The ex-dividend date is Tuesday, March 31st. This represents a $0.20 annualized dividend and a yield of 1.1%. SR Bancorp's dividend payout ratio is currently 55.56%.

Analysts Set New Price Targets

Separately, Weiss Ratings upgraded SR Bancorp from a "hold (c)" rating to a "buy (b-)" rating in a research note on Wednesday, April 1st. One equities research analyst has rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, SR Bancorp has an average rating of "Moderate Buy" and a consensus price target of $16.00.

Insider Buying and Selling

In other SR Bancorp news, CFO Harris M. Faqueri bought 3,000 shares of the company's stock in a transaction that occurred on Monday, March 16th. The stock was purchased at an average cost of $16.40 per share, for a total transaction of $49,200.00. Following the completion of the purchase, the chief financial officer owned 13,000 shares of the company's stock, valued at $213,200. This trade represents a 30.00% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Insiders acquired 5,570 shares of company stock valued at $91,979 in the last ninety days. Corporate insiders own 7.82% of the company's stock.

Institutional Investors Weigh In On SR Bancorp

Several institutional investors and hedge funds have recently added to or reduced their stakes in SRBK. Saber Capital Managment LLC acquired a new stake in SR Bancorp during the fourth quarter worth about $4,270,000. Geode Capital Management LLC grew its stake in shares of SR Bancorp by 94.5% in the second quarter. Geode Capital Management LLC now owns 187,005 shares of the company's stock valued at $2,525,000 after buying an additional 90,873 shares in the last quarter. Marshall Wace LLP acquired a new stake in shares of SR Bancorp in the second quarter valued at about $434,000. Jane Street Group LLC acquired a new stake in shares of SR Bancorp in the first quarter valued at about $263,000. Finally, Covalent Partners LLC grew its stake in shares of SR Bancorp by 49.0% in the fourth quarter. Covalent Partners LLC now owns 60,000 shares of the company's stock valued at $944,000 after buying an additional 19,740 shares in the last quarter. 24.70% of the stock is currently owned by institutional investors and hedge funds.

About SR Bancorp

SR Bancorp, Inc is a bank holding company that provides a broad array of banking and financial services through its wholly owned subsidiary. The firm focuses on serving community markets and maintaining close relationships with individuals, small businesses and local institutions.

Its product suite includes traditional deposit accounts such as checking and savings, certificates of deposit and money market accounts. On the lending side, SR Bancorp offers consumer, residential mortgage and commercial loans, as well as specialized lending solutions for small and mid-sized businesses.

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