Towne Bank (NASDAQ:TOWN) Issues Quarterly Earnings Results, Misses Estimates By $0.01 EPS

Key Points

• Towne Bank reported quarterly EPS of $0.78, missing analysts’ estimate of $0.79 by $0.01, while revenue came in at $245.72 million versus expectations of $245.33 million.
• The bank raised its quarterly dividend to $0.28 per share from $0.27, putting the annualized payout at $1.12 and the dividend yield at 3.1%.
• Wall Street sentiment is mixed but constructive, with a Moderate Buy consensus and an average price target of $39.50; the stock recently traded at $36.45.

Towne Bank (NASDAQ:TOWN - Get Free Report) posted its quarterly earnings data on Wednesday. The bank reported $0.78 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.79 by ($0.01), Zacks reports. Towne Bank had a return on equity of 9.91% and a net margin of 13.51%.The company had revenue of $245.72 million for the quarter, compared to analysts' expectations of $245.33 million.

Towne Bank Price Performance

Shares of NASDAQ:TOWN traded up $0.50 on Friday, hitting $36.45. The company's stock had a trading volume of 164,353 shares, compared to its average volume of 554,144. The company has a market capitalization of $2.88 billion, a PE ratio of 18.41 and a beta of 0.69. The company has a debt-to-equity ratio of 0.07, a current ratio of 0.89 and a quick ratio of 0.88. The company has a 50-day simple moving average of $35.21 and a 200 day simple moving average of $35.00. Towne Bank has a 1 year low of $31.91 and a 1 year high of $37.86.

Towne Bank Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, July 10th. Shareholders of record on Friday, June 26th were issued a $0.28 dividend. This represents a $1.12 annualized dividend and a dividend yield of 3.1%. The ex-dividend date of this dividend was Friday, June 26th. This is an increase from Towne Bank's previous quarterly dividend of $0.27. Towne Bank's payout ratio is 56.57%.

Wall Street Analyst Weigh In

TOWN has been the subject of several recent research reports. Keefe, Bruyette & Woods reiterated a "market perform" rating and issued a $38.00 target price (down from $42.00) on shares of Towne Bank in a research note on Wednesday, May 6th. Weiss Ratings upgraded shares of Towne Bank from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, July 16th. Hovde Group cut their price objective on shares of Towne Bank from $42.00 to $41.00 and set an "outperform" rating for the company in a report on Monday, April 27th. Finally, Zacks Research upgraded shares of Towne Bank from a "strong sell" rating to a "hold" rating in a research note on Monday, June 29th. Two investment 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 stock has an average rating of "Moderate Buy" and a consensus price target of $39.50.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of TOWN. AQR Capital Management LLC lifted its position in Towne Bank by 32.3% during the first quarter. AQR Capital Management LLC now owns 34,996 shares of the bank's stock valued at $1,197,000 after purchasing an additional 8,538 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in Towne Bank by 4.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 41,837 shares of the bank's stock worth $1,430,000 after buying an additional 1,837 shares in the last quarter. Millennium Management LLC increased its holdings in shares of Towne Bank by 56.6% in the 1st quarter. Millennium Management LLC now owns 381,761 shares of the bank's stock worth $13,052,000 after buying an additional 137,988 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in shares of Towne Bank by 4.7% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 157,713 shares of the bank's stock worth $5,392,000 after buying an additional 7,115 shares during the last quarter. Finally, Jane Street Group LLC raised its position in shares of Towne Bank by 1,220.9% during the 1st quarter. Jane Street Group LLC now owns 157,411 shares of the bank's stock valued at $5,382,000 after buying an additional 145,494 shares in the last quarter. Hedge funds and other institutional investors own 55.99% of the company's stock.

Towne Bank Company Profile

TowneBank is a Virginia‐based financial services company organized as a bank holding company. Its primary subsidiary, TowneBank, operates a network of community banking offices and mortgage production facilities. The company offers a comprehensive range of commercial and consumer banking solutions, including deposit accounts, lending products, treasury management, and private banking services tailored to individuals, small businesses, and middle‐market corporations.

In addition to traditional banking, TowneBank provides specialty services through affiliated subsidiaries.

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