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

Key Points

• Westamerica reported quarterly EPS of $1.13 vs. $1.08 expected and revenue of $62.3M vs. $60.7M, sending the stock to a new 52-week high.
• The company paid a quarterly dividend of $0.46 (annualized $1.84), implying a 3.3% yield and a payout ratio of about 40.7%.
• The Board authorized a $2.0 million share repurchase program (≈0.2% of shares), while analyst sentiment is mixed with a MarketBeat consensus of "Hold" and an average price target of $54.

Westamerica Bancorporation (NASDAQ:WABC - Get Free Report) shares reached a new 52-week high during trading on Friday following a stronger than expected earnings report. The stock traded as high as $55.51 and last traded at $55.69, with a volume of 19097 shares. The stock had previously closed at $53.30.

The financial services provider reported $1.13 EPS for the quarter, beating the consensus estimate of $1.08 by $0.05. The firm had revenue of $62.30 million during the quarter, compared to the consensus estimate of $60.70 million. Westamerica Bancorporation had a return on equity of 12.52% and a net margin of 42.75%.

Westamerica Bancorporation Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, February 13th. Stockholders of record on Monday, February 2nd were paid a dividend of $0.46 per share. This represents a $1.84 dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date of this dividend was Monday, February 2nd. Westamerica Bancorporation's dividend payout ratio is 40.71%.

Westamerica Bancorporation declared that its Board of Directors has initiated a share repurchase program on Thursday, December 18th that allows the company to buyback $2.00 million in shares. This buyback authorization allows the financial services provider to repurchase up to 0.2% of its shares through open market purchases. Shares buyback programs are often an indication that the company's management believes its stock is undervalued.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on WABC. Weiss Ratings raised Westamerica Bancorporation from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Monday, March 23rd. Wall Street Zen cut Westamerica Bancorporation from a "hold" rating to a "sell" rating in a report on Saturday, February 14th. Finally, Keefe, Bruyette & Woods upped their price target on Westamerica Bancorporation from $55.00 to $58.00 and gave the stock a "market perform" rating in a report on Friday. One equities research analyst has rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $54.00.

Institutional Investors Weigh In On Westamerica Bancorporation

Large investors have recently bought and sold shares of the stock. Assenagon Asset Management S.A. acquired a new stake in Westamerica Bancorporation during the 3rd quarter valued at $5,831,000. Y Intercept Hong Kong Ltd grew its holdings in Westamerica Bancorporation by 285.8% during the 3rd quarter. Y Intercept Hong Kong Ltd now owns 58,718 shares of the financial services provider's stock valued at $2,935,000 after buying an additional 43,500 shares during the last quarter. CWM LLC grew its holdings in Westamerica Bancorporation by 162.8% during the 3rd quarter. CWM LLC now owns 19,585 shares of the financial services provider's stock valued at $979,000 after buying an additional 12,133 shares during the last quarter. JPMorgan Chase & Co. grew its holdings in Westamerica Bancorporation by 43.9% during the 3rd quarter. JPMorgan Chase & Co. now owns 98,266 shares of the financial services provider's stock valued at $4,912,000 after buying an additional 29,964 shares during the last quarter. Finally, Summit Global Investments acquired a new stake in Westamerica Bancorporation during the 3rd quarter valued at $838,000. Institutional investors and hedge funds own 81.89% of the company's stock.

Westamerica Bancorporation Stock Performance

The business has a fifty day simple moving average of $51.72 and a 200 day simple moving average of $49.64. The stock has a market cap of $1.35 billion, a price-to-earnings ratio of 12.37 and a beta of 0.57.

About Westamerica Bancorporation

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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