WesBanco, Inc. (NASDAQ:WSBC) Sees Large Increase in Short Interest

Key Points

• Short interest in WesBanco surged 75.7% in June to 6.23 million shares, with about 6.6% of the float now sold short and a short-interest ratio of 1.9 days.
• Analyst sentiment remains generally positive, with a consensus rating of “Moderate Buy” and an average price target of $40.25, even after some mixed recent rating changes.
• The company continues shareholder returns and buybacks, recently paying a $0.38 quarterly dividend and authorizing a 4 million-share repurchase program, while insiders and institutions remain active in the stock.

WesBanco, Inc. (NASDAQ:WSBC - Get Free Report) was the recipient of a large increase in short interest during the month of June. As of June 30th, there was short interest totaling 6,231,038 shares, an increase of 75.7% from the June 15th total of 3,546,347 shares. Based on an average daily volume of 3,259,842 shares, the short-interest ratio is currently 1.9 days. Currently, 6.6% of the shares of the stock are sold short.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on WSBC shares. Weiss Ratings upgraded WesBanco from a "buy (b-)" rating to a "buy (b)" rating in a report on Wednesday, May 6th. Zacks Research upgraded shares of WesBanco from a "strong sell" rating to a "hold" rating in a report on Monday, June 22nd. DA Davidson restated a "buy" rating and issued a $41.00 price target on shares of WesBanco in a research report on Wednesday, April 22nd. Finally, Piper Sandler lifted their price objective on WesBanco from $40.00 to $43.00 and gave the stock an "overweight" rating in a research report on Friday, June 26th. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $40.25.

WesBanco Trading Up 4.2%

WSBC opened at $41.18 on Friday. WesBanco has a one year low of $29.18 and a one year high of $41.27. The stock has a market capitalization of $3.96 billion, a PE ratio of 13.28 and a beta of 0.67. The business's 50 day moving average price is $36.32 and its 200 day moving average price is $35.40. The company has a debt-to-equity ratio of 0.33, a quick ratio of 0.91 and a current ratio of 0.92.

WesBanco (NASDAQ:WSBC - Get Free Report) last posted its earnings results on Tuesday, April 21st. The financial services provider reported $0.91 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.86 by $0.05. WesBanco had a return on equity of 9.76% and a net margin of 21.12%.The company had revenue of $257.23 million during the quarter, compared to analysts' expectations of $264.52 million. During the same quarter last year, the firm earned $0.66 earnings per share. The firm's quarterly revenue was down 3.1% compared to the same quarter last year. As a group, equities research analysts expect that WesBanco will post 3.59 EPS for the current year.

WesBanco Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, July 1st. Stockholders of record on Friday, June 5th were paid a $0.38 dividend. This represents a $1.52 dividend on an annualized basis and a dividend yield of 3.7%. The ex-dividend date of this dividend was Friday, June 5th. WesBanco's payout ratio is 49.03%.

WesBanco declared that its Board of Directors has approved a stock repurchase program on Wednesday, May 20th that authorizes the company to repurchase 4,000,000 outstanding shares. This repurchase authorization authorizes the financial services provider to repurchase shares of its stock through open market purchases. Stock repurchase programs are often an indication that the company's board believes its stock is undervalued.

Insider Activity at WesBanco

In other news, EVP Jan Pattishall-Krupinski sold 4,500 shares of the firm's stock in a transaction that occurred on Monday, June 22nd. The stock was sold at an average price of $36.71, for a total value of $165,195.00. Following the transaction, the executive vice president owned 35,924 shares in the company, valued at $1,318,770.04. This trade represents a 11.13% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Joseph R. Robinson purchased 1,000 shares of the stock in a transaction dated Monday, April 27th. The stock was purchased at an average cost of $34.54 per share, for a total transaction of $34,540.00. Following the completion of the purchase, the director directly owned 19,068 shares of the company's stock, valued at approximately $658,608.72. The trade was a 5.53% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have bought 7,000 shares of company stock worth $236,500 in the last quarter. Company insiders own 2.07% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its stake in WesBanco by 2.3% during the 4th quarter. Vanguard Group Inc. now owns 9,819,476 shares of the financial services provider's stock worth $326,399,000 after acquiring an additional 224,107 shares in the last quarter. Dimensional Fund Advisors LP increased its stake in shares of WesBanco by 1.1% during the first quarter. Dimensional Fund Advisors LP now owns 5,451,344 shares of the financial services provider's stock worth $188,013,000 after buying an additional 59,077 shares during the period. State Street Corp lifted its position in shares of WesBanco by 0.4% during the 2nd quarter. State Street Corp now owns 3,663,315 shares of the financial services provider's stock worth $117,109,000 after purchasing an additional 14,147 shares during the last quarter. Wellington Management Group LLP lifted its holdings in WesBanco by 13.7% during the 4th quarter. Wellington Management Group LLP now owns 2,764,222 shares of the financial services provider's stock worth $91,883,000 after buying an additional 332,585 shares during the last quarter. Finally, Geode Capital Management LLC boosted its holdings in WesBanco by 0.7% in the fourth quarter. Geode Capital Management LLC now owns 2,356,011 shares of the financial services provider's stock valued at $78,325,000 after purchasing an additional 15,673 shares in the last quarter. 61.41% of the stock is currently owned by institutional investors and hedge funds.

About WesBanco

WesBanco, Inc is a bank holding company headquartered in Wheeling, West Virginia, offering a full range of community banking services through its principal subsidiary, WesBanco Bank, Inc The company serves individual consumers, small‐ to mid‐sized businesses, nonprofit organizations and governmental entities with a relationship‐driven approach and an emphasis on local decision‐making. Through its diversified platform, WesBanco provides core banking functions such as deposit accounts, commercial and consumer lending, mortgage banking, treasury management and electronic banking services.

In addition to traditional banking products, WesBanco offers specialized services including trust and wealth management, investment advisory and insurance solutions.

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