Westamerica Bancorporation (NASDAQ:WABC) Reaches New 52-Week High on Better-Than-Expected Earnings

Key Points

• Westamerica Bancorporation hit a new 52-week high after reporting better-than-expected quarterly results, with EPS of $1.17 versus the $1.10 consensus and revenue of $62.77 million topping estimates.
• The company also raised its quarterly dividend to $0.48 per share from $0.46, which works out to an annualized dividend of $1.92 and a yield of about 3.1%.
• Analyst sentiment remains moderately positive, with the consensus rating at Moderate Buy; meanwhile, institutional ownership is high at 81.89%, and shares were up about 3.9% on the news.

Westamerica Bancorporation (NASDAQ:WABC - Get Free Report) shares hit a new 52-week high during trading on Thursday following a stronger than expected earnings report. The stock traded as high as $61.02 and last traded at $61.3790, with a volume of 62180 shares changing hands. The stock had previously closed at $59.02.

The financial services provider reported $1.17 EPS for the quarter, topping the consensus estimate of $1.10 by $0.07. The firm had revenue of $62.77 million for the quarter, compared to the consensus estimate of $61.60 million. Westamerica Bancorporation had a net margin of 42.08% and a return on equity of 12.26%.

Westamerica Bancorporation Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Monday, May 4th were paid a dividend of $0.48 per share. The ex-dividend date of this dividend was Monday, May 4th. This is a positive change from Westamerica Bancorporation's previous quarterly dividend of $0.46. This represents a $1.92 dividend on an annualized basis and a yield of 3.1%. Westamerica Bancorporation's payout ratio is currently 42.76%.

Analyst Ratings Changes

A number of research analysts recently commented on WABC shares. Keefe, Bruyette & Woods increased their price target on shares of Westamerica Bancorporation from $55.00 to $58.00 and gave the company a "market perform" rating in a report on Friday, April 17th. Weiss Ratings upgraded Westamerica Bancorporation from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday, May 1st. One equities research analyst has rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $58.00.

Insider Activity

In related news, SVP Robert James Baker, Jr. sold 759 shares of Westamerica Bancorporation stock in a transaction dated Monday, April 20th. The shares were sold at an average price of $53.83, for a total transaction of $40,856.97. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 5.90% of the company's stock.

Institutional Trading of Westamerica Bancorporation

Several institutional investors have recently added to or reduced their stakes in the company. Royal Bank of Canada grew its stake in shares of Westamerica Bancorporation by 6.8% during the first quarter. Royal Bank of Canada now owns 18,531 shares of the financial services provider's stock valued at $938,000 after buying an additional 1,183 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in Westamerica Bancorporation by 4.4% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 15,261 shares of the financial services provider's stock valued at $773,000 after acquiring an additional 642 shares during the period. Jones Financial Companies Lllp purchased a new position in Westamerica Bancorporation during the 1st quarter valued at $99,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in Westamerica Bancorporation by 9.0% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 64,051 shares of the financial services provider's stock valued at $3,243,000 after acquiring an additional 5,293 shares during the last quarter. Finally, Jane Street Group LLC grew its position in Westamerica Bancorporation by 815.8% in the 1st quarter. Jane Street Group LLC now owns 67,469 shares of the financial services provider's stock valued at $3,416,000 after acquiring an additional 60,102 shares during the last quarter. Institutional investors own 81.89% of the company's stock.

Westamerica Bancorporation Stock Up 3.9%

The firm has a market cap of $1.44 billion, a PE ratio of 13.66 and a beta of 0.56. The business has a 50 day simple moving average of $56.90 and a two-hundred day simple moving average of $53.33.

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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