Towne Bank (NASDAQ:TOWN) Downgraded to Sell Rating by Wall Street Zen

Key Points

• Towne Bank (NASDAQ:TOWN) has been downgraded from a "hold" rating to a "sell" rating by Wall Street Zen, indicating a more negative outlook for the stock.
• Despite the downgrade, Hovde Group has raised its price target for Towne Bank from $39.00 to $41.00 and maintains an "outperform" rating.
• The bank reported a quarterly earnings per share (EPS) of $0.81, exceeding expectations, with significant year-over-year revenue growth of 18.6% to $207.44 million.

Towne Bank (NASDAQ:TOWN - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued on Saturday.

Separately, Hovde Group raised their target price on shares of Towne Bank from $39.00 to $41.00 and gave the company an "outperform" rating in a report on Thursday.

Towne Bank Stock Performance

Shares of TOWN stock traded down $0.02 on Friday, hitting $35.60. 90,057 shares of the stock traded hands, compared to its average volume of 254,828. The firm's 50-day moving average price is $34.66 and its two-hundred day moving average price is $34.43. The stock has a market capitalization of $2.67 billion, a PE ratio of 15.48 and a beta of 0.80. Towne Bank has a twelve month low of $29.43 and a twelve month high of $38.28.

Towne Bank (NASDAQ:TOWN - Get Free Report) last announced its earnings results on Wednesday, July 23rd. The bank reported $0.81 earnings per share for the quarter, topping the consensus estimate of $0.69 by $0.12. The company had revenue of $207.44 million during the quarter, compared to analyst estimates of $202.18 million. Towne Bank had a net margin of 16.49% and a return on equity of 9.05%. Towne Bank's revenue was up 18.6% compared to the same quarter last year. During the same quarter last year, the firm posted $0.57 earnings per share. On average, equities research analysts anticipate that Towne Bank will post 2.6 EPS for the current fiscal year.

Institutional Investors Weigh In On Towne Bank

Hedge funds and other institutional investors have recently bought and sold shares of the business. Abound Financial LLC acquired a new position in shares of Towne Bank during the 1st quarter worth $27,000. Summit Securities Group LLC purchased a new stake in Towne Bank during the 1st quarter worth about $28,000. Sterling Capital Management LLC increased its position in Towne Bank by 807.8% during the 4th quarter. Sterling Capital Management LLC now owns 2,215 shares of the bank's stock worth $75,000 after purchasing an additional 1,971 shares in the last quarter. CWM LLC increased its position in Towne Bank by 37.2% during the 2nd quarter. CWM LLC now owns 2,205 shares of the bank's stock worth $75,000 after purchasing an additional 598 shares in the last quarter. Finally, Federated Hermes Inc. purchased a new stake in Towne Bank during the 4th quarter worth about $82,000. Institutional investors and hedge funds own 55.99% of the company's stock.

About Towne Bank

TowneBank provides retail and commercial banking services for individuals, commercial enterprises, and professionals. The company operates through three segments: Banking, Realty, and Insurance. It accepts various deposits, including demand deposits, savings accounts, money rate savings, certificates of deposit, and individual retirement accounts.