Westamerica Bancorporation (NASDAQ:WABC) Issues Earnings Results

Key Points

• Q1 earnings beat: Westamerica reported EPS of $1.13, beating estimates by $0.05, with a return on equity of 12.52% and a net margin of 42.75%.
• The board approved a quarterly dividend of $0.46 (annualized $1.84, 3.4% yield) with a 40.7% payout ratio, and authorized a $2.0 million share buyback program equal to about 0.2% of outstanding shares.
• Shares traded at $53.55 (up 0.5%) with a market cap of $1.30B and a P/E of 11.85; analyst coverage is mixed and the consensus rating is Hold with a $52.50 target.

Westamerica Bancorporation (NASDAQ:WABC - Get Free Report) released its quarterly earnings data on Thursday. The financial services provider reported $1.13 earnings per share for the quarter, topping analysts' consensus estimates of $1.08 by $0.05, Zacks reports. Westamerica Bancorporation had a return on equity of 12.52% and a net margin of 42.75%.

Westamerica Bancorporation Trading Up 0.5%

Shares of NASDAQ WABC traded up $0.25 during midday trading on Thursday, reaching $53.55. The company had a trading volume of 118,477 shares, compared to its average volume of 179,913. Westamerica Bancorporation has a 1 year low of $44.93 and a 1 year high of $54.71. The business's 50-day simple moving average is $51.70 and its 200 day simple moving average is $49.61. The stock has a market cap of $1.30 billion, a P/E ratio of 11.85 and a beta of 0.57.

Westamerica Bancorporation Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, February 13th. Stockholders of record on Monday, February 2nd were given a $0.46 dividend. The ex-dividend date of this dividend was Monday, February 2nd. This represents a $1.84 dividend on an annualized basis and a dividend yield of 3.4%. Westamerica Bancorporation's payout ratio is presently 40.71%.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of WABC. Mercer Global Advisors Inc. ADV raised its position in shares of Westamerica Bancorporation by 22.7% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 9,631 shares of the financial services provider's stock worth $461,000 after purchasing an additional 1,783 shares during the last quarter. State of Tennessee Department of Treasury boosted its holdings in Westamerica Bancorporation by 60.0% in the 4th quarter. State of Tennessee Department of Treasury now owns 10,623 shares of the financial services provider's stock worth $537,000 after buying an additional 3,983 shares during the last quarter. SummitTX Capital L.P. acquired a new position in shares of Westamerica Bancorporation during the fourth quarter valued at approximately $219,000. Numerai GP LLC lifted its position in shares of Westamerica Bancorporation by 29.2% in the fourth quarter. Numerai GP LLC now owns 38,346 shares of the financial services provider's stock valued at $1,834,000 after acquiring an additional 8,673 shares in the last quarter. Finally, Oxford Asset Management LLP acquired a new stake in shares of Westamerica Bancorporation in the fourth quarter worth approximately $351,000. 81.89% of the stock is currently owned by hedge funds and other institutional investors.

Westamerica Bancorporation declared that its Board of Directors has authorized a stock buyback program on Thursday, December 18th that allows the company to buyback $2.00 million in outstanding shares. This buyback authorization allows the financial services provider to purchase up to 0.2% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's board of directors believes its shares are undervalued.

Wall Street Analyst Weigh In

WABC has been the subject of a number of analyst reports. Weiss Ratings upgraded shares of Westamerica Bancorporation from a "hold (c+)" rating to a "buy (b-)" rating in a report on Monday, March 23rd. Wall Street Zen cut Westamerica Bancorporation from a "hold" rating to a "sell" rating in a research note on Saturday, February 14th. Finally, Keefe, Bruyette & Woods increased their price target on Westamerica Bancorporation from $53.00 to $55.00 and gave the stock a "market perform" rating in a report on Tuesday, January 20th. One equities research analyst has rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, Westamerica Bancorporation has a consensus rating of "Hold" and a consensus target price of $52.50.

Westamerica Bancorporation Company Profile

Westamerica Bancorporation NASDAQ: WABC is a California-based bank holding company that provides a comprehensive suite of commercial banking, trust and wealth management services. Through its primary subsidiary, Westamerica Bank, the company offers deposit products, lending solutions and treasury management to a diverse clientele that includes small and mid-sized businesses, professionals, non-profit organizations and individuals.

The company's lending portfolio encompasses commercial real estate financing, agricultural loans, equipment financing and lines of credit designed to support working capital needs.

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