Towne Bank's (TOWN) Market Perform Rating Reiterated at Keefe, Bruyette & Woods

Key Points

• Keefe, Bruyette & Woods reiterated a Market Perform rating on Towne Bank and cut its price target to $38 (from $42), implying about an 8.7% upside from the prior close.
• Analyst views are mixed—two Buys, one Hold and one Sell—giving Towne Bank a consensus Hold rating and a consensus price target of $39.50, with notable notes including a Zacks downgrade to "strong sell" and a Weiss Ratings "buy (b-)."
• Towne Bank posted Q1 EPS of $0.74 (in line with estimates) while revenue missed at $247.6M vs. $274.0M expected, though revenue was up 34.6% year-over-year; the stock trades in the mid-$30s with a market cap of $2.76B and a P/E of 17.66.

Towne Bank (NASDAQ:TOWN - Get Free Report)'s stock had its "market perform" rating reissued by equities researchers at Keefe, Bruyette & Woods in a report released on Wednesday, Marketbeat.com reports. They currently have a $38.00 price target on the bank's stock, down from their prior price target of $42.00. Keefe, Bruyette & Woods' target price points to a potential upside of 8.66% from the company's previous close.

Several other brokerages have also commented on TOWN. Zacks Research lowered shares of Towne Bank from a "hold" rating to a "strong sell" rating in a report on Monday. Hovde Group cut their target price on shares of Towne Bank from $42.00 to $41.00 and set an "outperform" rating on the stock in a research note on Monday, April 27th. Finally, Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Towne Bank in a research note on Wednesday, January 21st. Two analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Towne Bank has a consensus rating of "Hold" and a consensus price target of $39.50.

Towne Bank Stock Performance

NASDAQ:TOWN opened at $34.97 on Wednesday. The company has a debt-to-equity ratio of 0.02, a current ratio of 0.87 and a quick ratio of 0.86. The firm has a market capitalization of $2.76 billion, a price-to-earnings ratio of 17.66 and a beta of 0.72. The company's 50-day moving average is $34.35 and its two-hundred day moving average is $34.40. Towne Bank has a 1-year low of $31.91 and a 1-year high of $37.86.

Towne Bank (NASDAQ:TOWN - Get Free Report) last posted its earnings results on Wednesday, April 22nd. The bank reported $0.74 earnings per share for the quarter, meeting the consensus estimate of $0.74. The company had revenue of $247.62 million for 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%. Towne Bank's revenue was up 34.6% on a year-over-year basis. During the same period in the previous year, the business posted $0.68 EPS. Analysts forecast that Towne Bank will post 3.15 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. &PARTNERS lifted its stake in shares of Towne Bank by 3.2% in the fourth quarter. &PARTNERS now owns 10,428 shares of the bank's stock valued at $348,000 after purchasing an additional 319 shares during the period. AMG National Trust Bank lifted its stake in shares of Towne Bank by 0.6% in the third quarter. AMG National Trust Bank now owns 51,733 shares of the bank's stock valued at $1,788,000 after purchasing an additional 327 shares during the period. Global Retirement Partners LLC lifted its stake in shares of Towne Bank by 44.1% in the third quarter. Global Retirement Partners LLC now owns 1,104 shares of the bank's stock valued at $38,000 after purchasing an additional 338 shares during the period. Arizona State Retirement System lifted its stake in shares of Towne Bank by 1.8% in the fourth quarter. Arizona State Retirement System now owns 21,410 shares of the bank's stock valued at $714,000 after purchasing an additional 382 shares during the period. Finally, Richardson Financial Services Inc. lifted its stake in shares of Towne Bank by 150.3% in the third quarter. Richardson Financial Services Inc. now owns 816 shares of the bank's stock valued at $28,000 after purchasing an additional 490 shares during the period. Institutional investors and hedge funds own 55.99% of the company's stock.

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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