Towne Bank (NASDAQ:TOWN) Short Interest Up 68.6% in August

Key Points

• Towne Bank's short interest surged by 68.6% in August, reaching a total of 1,990,000 shares which represents 2.9% of its shares; the short-interest ratio is currently 6.4 days.
• Hedge funds have significantly increased their holdings in Towne Bank, with several companies like EverSource Wealth Advisors boosting their stakes by as much as 931.5%.
• Analysts have provided a positive outlook for Towne Bank, with ratings showing a consensus of "Moderate Buy" and a target price of $40.67, following recent upgrades including from Hovde Group.

Towne Bank (NASDAQ:TOWN - Get Free Report) was the recipient of a significant growth in short interest in August. As of August 31st, there was short interest totaling 1,990,000 shares, a growth of 68.6% from the August 15th total of 1,180,000 shares. Based on an average daily trading volume, of 309,000 shares, the short-interest ratio is currently 6.4 days. Currently, 2.9% of the shares of the stock are short sold. Currently, 2.9% of the shares of the stock are short sold. Based on an average daily trading volume, of 309,000 shares, the short-interest ratio is currently 6.4 days.

Towne Bank Stock Down 1.6%

NASDAQ:TOWN traded down $0.59 on Friday, reaching $35.81. 199,597 shares of the stock traded hands, compared to its average volume of 270,344. The company's fifty day simple moving average is $35.95 and its 200 day simple moving average is $34.52. Towne Bank has a 12 month low of $29.43 and a 12 month high of $38.28. The company has a market capitalization of $2.69 billion, a price-to-earnings ratio of 15.58 and a beta of 0.87. The company has a current ratio of 0.87, a quick ratio of 0.85 and a debt-to-equity ratio of 0.01.

Towne Bank (NASDAQ:TOWN - Get Free Report) last announced its quarterly earnings results on Wednesday, July 23rd. The bank reported $0.81 EPS for the quarter, topping analysts' consensus estimates of $0.69 by $0.12. Towne Bank had a net margin of 16.49% and a return on equity of 8.99%. The firm had revenue of $207.44 million during the quarter, compared to analyst estimates of $202.18 million. During the same period in the previous year, the business posted $0.57 earnings per share. The business's revenue for the quarter was up 18.6% on a year-over-year basis. Equities analysts predict that Towne Bank will post 2.6 EPS for the current fiscal year.

Towne Bank Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 10th. Investors of record on Monday, September 29th will be given a $0.27 dividend. This represents a $1.08 annualized dividend and a yield of 3.0%. The ex-dividend date is Monday, September 29th. Towne Bank's payout ratio is currently 46.96%.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on TOWN. 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 research report on Thursday, July 24th. Wall Street Zen upgraded shares of Towne Bank from a "sell" rating to a "hold" rating in a report on Sunday, August 3rd. Two equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $40.67.

Institutional Investors Weigh In On Towne Bank

Several large investors have recently bought and sold shares of TOWN. Brown Advisory Inc. increased its position in Towne Bank by 2,646.3% in the second quarter. Brown Advisory Inc. now owns 1,218,786 shares of the bank's stock worth $41,658,000 after purchasing an additional 1,174,406 shares during the last quarter. Wellington Management Group LLP bought a new position in Towne Bank during the fourth quarter valued at $22,894,000. Nuveen LLC bought a new position in Towne Bank during the first quarter valued at $15,584,000. Victory Capital Management Inc. increased its position in Towne Bank by 19.9% during the first quarter. Victory Capital Management Inc. now owns 2,584,688 shares of the bank's stock valued at $88,370,000 after acquiring an additional 429,487 shares during the last quarter. Finally, FJ Capital Management LLC bought a new position in Towne Bank during the second quarter valued at $10,296,000. Institutional investors 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.