Towne Bank (NASDAQ:TOWN) Releases Quarterly Earnings Results, Misses Expectations By $0.17 EPS

Key Points

• Towne Bank reported $0.74 EPS for the quarter, missing the consensus $0.91 by $0.17, with a return on equity of 9.95% and a net margin of 15.12%.
• The company paid a quarterly dividend of $0.27 (annualized $1.08), yielding 3.0% with a payout ratio of 49.09%.
• Shares slipped to $35.45 (down $0.20) after the report; the stock has a market cap of $2.8B, a P/E of 16.11, and an average analyst target of $41 with a "Moderate Buy" consensus.

Towne Bank (NASDAQ:TOWN - Get Free Report) posted its quarterly earnings data on Wednesday. The bank reported $0.74 earnings per share for the quarter, missing the consensus estimate of $0.91 by ($0.17), Zacks reports. Towne Bank had a return on equity of 9.95% and a net margin of 15.12%.

Towne Bank Price Performance

Shares of TOWN traded down $0.20 during mid-day trading on Wednesday, hitting $35.45. 310,800 shares of the company traded hands, compared to its average volume of 504,755. Towne Bank has a one year low of $31.91 and a one year high of $37.86. The company has a current ratio of 0.87, a quick ratio of 0.86 and a debt-to-equity ratio of 0.02. The business has a 50-day moving average of $34.45 and a 200 day moving average of $34.30. The stock has a market capitalization of $2.80 billion, a price-to-earnings ratio of 16.11 and a beta of 0.72.

Towne Bank Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, April 10th. Stockholders of record on Tuesday, March 31st were paid a dividend of $0.27 per share. This represents a $1.08 annualized dividend and a dividend yield of 3.0%. The ex-dividend date of this dividend was Tuesday, March 31st. Towne Bank's dividend payout ratio is 49.09%.

Wall Street Analyst Weigh In

TOWN has been the subject of several recent analyst reports. Zacks Research raised shares of Towne Bank from a "strong sell" rating to a "hold" rating in a report on Friday, April 3rd. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Towne Bank in a report on Wednesday, January 21st. Two equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat.com, Towne Bank has an average rating of "Moderate Buy" and an average target price of $41.00.

Institutional Trading of Towne Bank

Several hedge funds have recently modified their holdings of the stock. Empowered Funds LLC bought a new stake in shares of Towne Bank during the fourth quarter valued at approximately $93,000. Voloridge Investment Management LLC bought a new stake in shares of Towne Bank during the fourth quarter valued at approximately $568,000. Wellington Management Group LLP boosted its stake in Towne Bank by 4.6% in the fourth quarter. Wellington Management Group LLP now owns 471,313 shares of the bank's stock valued at $15,728,000 after acquiring an additional 20,740 shares during the last quarter. Tudor Investment Corp ET AL bought a new position in Towne Bank in the fourth quarter valued at approximately $533,000. Finally, Numerai GP LLC bought a new position in Towne Bank in the fourth quarter valued at approximately $1,859,000. 55.99% of the stock is owned by institutional investors.

About Towne Bank

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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