Towne Bank (NASDAQ:TOWN) Price Target Cut to $41.00 by Analysts at Hovde Group

Key Points

• Hovde Group lowered its price target for Towne Bank to $41.00 (from $42.00) while maintaining an "outperform" rating, a target that implies roughly a 14.3% upside from the prior close.
• Towne Bank reported Q1 EPS of $0.74, matching estimates, while revenue of $247.6M missed forecasts but was up 34.6% year‑over‑year; analysts forecast about 3.35 EPS for the current year.
• Shares traded at about $35.86, giving a market cap of roughly $2.83B and a PE of 18.15, with institutional investors owning about 56% of the stock and several firms recently adjusting their stakes.

Towne Bank (NASDAQ:TOWN - Get Free Report) had its price objective dropped by stock analysts at Hovde Group from $42.00 to $41.00 in a note issued to investors on Monday, MarketBeat.com reports. The firm currently has an "outperform" rating on the bank's stock. Hovde Group's target price suggests a potential upside of 14.33% from the company's previous close.

Other analysts have also issued reports about the stock. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Towne Bank in a research note on Wednesday, January 21st. Zacks Research raised shares of Towne Bank from a "strong sell" rating to a "hold" rating in a research note on Friday, April 3rd. Two analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, Towne Bank currently has a consensus rating of "Moderate Buy" and a consensus price target of $41.00.

Towne Bank Price Performance

Shares of NASDAQ:TOWN traded up $0.66 during trading on Monday, reaching $35.86. The company had a trading volume of 24,196 shares, compared to its average volume of 501,487. The firm's fifty day moving average is $34.41 and its 200 day moving average is $34.33. The firm has a market capitalization of $2.83 billion, a PE ratio of 18.15 and a beta of 0.72. Towne Bank has a twelve month low of $31.91 and a twelve month high of $37.86. The company has a debt-to-equity ratio of 0.02, a quick ratio of 0.86 and a current ratio of 0.87.

Towne Bank (NASDAQ:TOWN - Get Free Report) last issued its quarterly earnings results on Wednesday, April 22nd. The bank reported $0.74 earnings per share for the quarter, hitting analysts' consensus estimates of $0.74. The company had revenue of $247.62 million during the quarter, compared to analyst estimates of $274.02 million. Towne Bank had a net margin of 13.51% and a return on equity of 10.48%. The business's revenue for the quarter was up 34.6% compared to the same quarter last year. During the same period in the prior year, the business posted $0.68 EPS. On average, equities analysts forecast that Towne Bank will post 3.35 EPS for the current year.

Institutional Trading of Towne Bank

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Deprince Race & Zollo Inc. lifted its stake in Towne Bank by 8.3% during the first quarter. Deprince Race & Zollo Inc. now owns 189,953 shares of the bank's stock valued at $6,396,000 after purchasing an additional 14,523 shares during the last quarter. Wagner Wealth Management LLC acquired a new stake in Towne Bank during the first quarter valued at approximately $427,000. MQS Management LLC lifted its stake in Towne Bank by 119.8% during the first quarter. MQS Management LLC now owns 14,548 shares of the bank's stock valued at $490,000 after purchasing an additional 7,928 shares during the last quarter. Inspire Investing LLC lifted its stake in Towne Bank by 9.0% during the first quarter. Inspire Investing LLC now owns 15,199 shares of the bank's stock valued at $512,000 after purchasing an additional 1,260 shares during the last quarter. Finally, Pictet Asset Management Holding SA lifted its stake in Towne Bank by 11.9% during the first quarter. Pictet Asset Management Holding SA now owns 12,912 shares of the bank's stock valued at $435,000 after purchasing an additional 1,369 shares during the last quarter. 55.99% of the stock is owned by institutional investors and hedge funds.

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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