Washington Trust Bancorp (NASDAQ:WASH) Shares Gap Down - Should You Sell?

Key Points

• Washington Trust Bancorp's shares gapped down from a previous close of $28.90 to open at $28.14, with analysts suggesting a shift in sentiment as Piper Sandler downgraded the stock to an "underweight" rating.
• The company recently reported earnings of $0.68 per share, surpassing analyst expectations, with anticipated earnings of 2.76 per share for the current fiscal year.
• A quarterly dividend of $0.56 per share has been announced, reflecting an annualized yield of 8.0%, although the dividend payout ratio stands at a negative -148.34%.

Shares of Washington Trust Bancorp, Inc. (NASDAQ:WASH - Get Free Report) gapped down prior to trading on Wednesday . The stock had previously closed at $28.90, but opened at $28.14. Washington Trust Bancorp shares last traded at $28.14, with a volume of 13,527 shares trading hands.

Analyst Ratings Changes

Separately, Piper Sandler downgraded shares of Washington Trust Bancorp from a "neutral" rating to an "underweight" rating and set a $28.00 price objective on the stock. in a research note on Tuesday, July 22nd. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Washington Trust Bancorp has an average rating of "Hold" and an average price target of $29.00.

Washington Trust Bancorp Stock Performance

The company has a market capitalization of $537.15 million, a P/E ratio of -18.57, a PEG ratio of 0.82 and a beta of 0.94. The company's 50-day moving average is $28.87 and its two-hundred day moving average is $28.60. The company has a quick ratio of 1.04, a current ratio of 1.05 and a debt-to-equity ratio of 1.94.

Washington Trust Bancorp (NASDAQ:WASH - Get Free Report) last released its quarterly earnings data on Monday, July 21st. The financial services provider reported $0.68 earnings per share for the quarter, beating analysts' consensus estimates of $0.63 by $0.05. Washington Trust Bancorp had a positive return on equity of 9.05% and a negative net margin of 6.10%.The firm had revenue of $54.26 million during the quarter, compared to analyst estimates of $54.07 million. During the same quarter in the prior year, the firm posted $0.63 earnings per share. Equities analysts anticipate that Washington Trust Bancorp, Inc. will post 2.76 earnings per share for the current fiscal year.

Washington Trust Bancorp Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 10th. Investors of record on Wednesday, October 1st will be given a dividend of $0.56 per share. The ex-dividend date of this dividend is Wednesday, October 1st. This represents a $2.24 annualized dividend and a dividend yield of 8.0%. Washington Trust Bancorp's dividend payout ratio (DPR) is -148.34%.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Linden Thomas Advisory Services LLC increased its stake in Washington Trust Bancorp by 1.1% in the 1st quarter. Linden Thomas Advisory Services LLC now owns 36,775 shares of the financial services provider's stock worth $1,135,000 after acquiring an additional 401 shares during the last quarter. Federated Hermes Inc. boosted its holdings in Washington Trust Bancorp by 24.6% during the 2nd quarter. Federated Hermes Inc. now owns 2,130 shares of the financial services provider's stock valued at $60,000 after acquiring an additional 420 shares during the period. Barrett & Company Inc. boosted its holdings in Washington Trust Bancorp by 10.1% during the 2nd quarter. Barrett & Company Inc. now owns 5,646 shares of the financial services provider's stock valued at $160,000 after acquiring an additional 518 shares during the period. CWM LLC lifted its holdings in shares of Washington Trust Bancorp by 6.2% in the 2nd quarter. CWM LLC now owns 12,501 shares of the financial services provider's stock worth $354,000 after buying an additional 734 shares during the period. Finally, Shepherd Financial Partners LLC lifted its holdings in shares of Washington Trust Bancorp by 8.8% in the 1st quarter. Shepherd Financial Partners LLC now owns 10,167 shares of the financial services provider's stock worth $314,000 after buying an additional 819 shares during the period. 65.81% of the stock is owned by hedge funds and other institutional investors.

Washington Trust Bancorp Company Profile

Washington Trust Bancorp, Inc operates as the bank holding company for The Washington Trust Company, of Westerly that provides various banking and financial services to individuals and businesses. The company operates in two segments, Commercial Banking and Wealth Management Services. The Commercial Banking segment offers deposit accounts, including interest-bearing and noninterest-bearing demand deposits, NOW and savings accounts, money market and retirement deposit accounts, and time deposits; various commercial and retail lending products, such as commercial real estate loans, including commercial mortgages, and construction and development loans; commercial and industrial loans comprising working capital, equipment financing, and financing for other business-related purposes; residential real estate loans that consist of mortgage and homeowner construction loans; and consumer loans comprising home equity loans and lines of credit, personal installment loans, and loans to individuals secured by general aviation aircraft.

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