Waterstone Financial (NASDAQ:WSBF) Issues Earnings Results

Key Points

• Missed estimates: Waterstone reported Q earnings of $0.34 EPS vs. $0.66 expected and revenue of $35.69M vs. $65.80M consensus, signaling a notable top- and bottom-line shortfall (net margin 13.12%, ROE 7.67%).
• Dividend increased: The board raised the quarterly dividend to $0.17 (annualized $0.68) for a ~3.8% yield, with an ex-dividend date of April 8 and a payout ratio of about 45.6%.
• Insider selling notable: Company insiders sold 106,780 shares (~$1.97M) over the last three months, leaving insiders with 7.40% ownership, while institutional ownership stands around 62.7%.

Waterstone Financial (NASDAQ:WSBF - Get Free Report) posted its earnings results on Thursday. The savings and loans company reported $0.34 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.66 by ($0.32), Zacks reports. The company had revenue of $35.69 million during the quarter, compared to the consensus estimate of $65.80 million. Waterstone Financial had a net margin of 13.12% and a return on equity of 7.67%.

Waterstone Financial Stock Down 0.6%

NASDAQ:WSBF traded down $0.11 during trading hours on Friday, reaching $17.86. The company's stock had a trading volume of 13,087 shares, compared to its average volume of 58,359. The company has a market cap of $324.26 million, a price-to-earnings ratio of 12.06 and a beta of 0.77. Waterstone Financial has a one year low of $11.91 and a one year high of $18.88. The business's 50-day moving average is $18.07 and its 200-day moving average is $16.93. The company has a debt-to-equity ratio of 1.18, a current ratio of 1.30 and a quick ratio of 1.20.

Waterstone Financial Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, May 1st. Investors of record on Wednesday, April 8th will be paid a $0.17 dividend. This represents a $0.68 annualized dividend and a dividend yield of 3.8%. The ex-dividend date of this dividend is Wednesday, April 8th. This is a boost from Waterstone Financial's previous quarterly dividend of $0.15. Waterstone Financial's dividend payout ratio (DPR) is presently 45.64%.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on WSBF. Wall Street Zen raised Waterstone Financial from a "hold" rating to a "buy" rating in a research report on Saturday, March 7th. Weiss Ratings reiterated a "buy (b-)" rating on shares of Waterstone Financial in a report on Monday, December 29th. One investment analyst has rated the stock with a Buy rating, Based on data from MarketBeat, the company presently has a consensus rating of "Buy".

Insiders Place Their Bets

In other news, Director Patrick S. Lawton sold 30,000 shares of the company's stock in a transaction dated Tuesday, February 3rd. The stock was sold at an average price of $18.53, for a total transaction of $555,900.00. Following the completion of the sale, the director owned 19,255 shares in the company, valued at approximately $356,795.15. This represents a 60.91% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, EVP Julie Ann Glynn sold 20,929 shares of the company's stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $18.19, for a total value of $380,698.51. Following the sale, the executive vice president owned 9,071 shares of the company's stock, valued at approximately $165,001.49. This trade represents a 69.76% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 106,780 shares of company stock valued at $1,967,486 over the last three months. 7.40% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Waterstone Financial

Several institutional investors and hedge funds have recently added to or reduced their stakes in WSBF. Mercer Global Advisors Inc. ADV grew its holdings in Waterstone Financial by 33.3% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 14,117 shares of the savings and loans company's stock valued at $234,000 after purchasing an additional 3,527 shares during the last quarter. Empowered Funds LLC raised its position in shares of Waterstone Financial by 11.4% in the fourth quarter. Empowered Funds LLC now owns 109,950 shares of the savings and loans company's stock valued at $1,820,000 after purchasing an additional 11,228 shares during the period. AQR Capital Management LLC raised its position in shares of Waterstone Financial by 21.6% in the fourth quarter. AQR Capital Management LLC now owns 201,704 shares of the savings and loans company's stock valued at $3,338,000 after purchasing an additional 35,828 shares during the period. State of Wisconsin Investment Board raised its position in shares of Waterstone Financial by 28.8% in the fourth quarter. State of Wisconsin Investment Board now owns 33,500 shares of the savings and loans company's stock valued at $554,000 after purchasing an additional 7,500 shares during the period. Finally, Mariner LLC raised its position in shares of Waterstone Financial by 32.9% in the fourth quarter. Mariner LLC now owns 19,480 shares of the savings and loans company's stock valued at $322,000 after purchasing an additional 4,826 shares during the period. 62.71% of the stock is currently owned by institutional investors and hedge funds.

About Waterstone Financial

Waterstone Financial, Inc is a bank holding company based in Glendale, Wisconsin, that provides a broad range of financial services to individuals, businesses and institutions. Its primary operations are conducted through its wholly owned subsidiary, Waterstone Bank, which offers deposit products, loan facilities and treasury management services. The company focuses on delivering relationship-based banking solutions tailored to the needs of small and medium-sized enterprises as well as retail customers.

In addition to traditional commercial and consumer banking, Waterstone Financial supports its clients with specialized financing, including real estate, equipment and asset-based lending.

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