Westamerica Bancorporation (NASDAQ:WABC) Short Interest Update

Key Points

• Short interest fell 19% in March to 520,052 shares as of March 31, representing about 2.3% of shares short and a short-interest ratio of 1.9 days based on average daily volume.
• Westamerica beat quarterly EPS estimates ($1.12 vs. $1.07), has a market cap of about $1.29 billion and a PE of 11.79, while returning capital via a $2.0 million buyback (≈0.2% of shares) and a quarterly dividend of $0.46 (annualized yield 3.5%, 40.7% payout).
• The stock carries a consensus "Hold" rating with an average target of $52.50, amid mixed analyst calls (upgrades and downgrades) and high institutional ownership at about 81.9%.

Westamerica Bancorporation (NASDAQ:WABC - Get Free Report) saw a significant decline in short interest in March. As of March 31st, there was short interest totaling 520,052 shares, a decline of 19.0% from the March 15th total of 641,904 shares. Currently, 2.3% of the shares of the stock are short sold. Based on an average daily trading volume, of 278,629 shares, the short-interest ratio is currently 1.9 days.

Westamerica Bancorporation Price Performance

Shares of WABC stock opened at $53.30 on Thursday. Westamerica Bancorporation has a 1 year low of $44.65 and a 1 year high of $54.71. The stock's 50 day simple moving average is $51.70 and its two-hundred day simple moving average is $49.61. The company has a market cap of $1.29 billion, a PE ratio of 11.79 and a beta of 0.57.

Westamerica Bancorporation (NASDAQ:WABC - Get Free Report) last issued its quarterly earnings data on Thursday, January 15th. The financial services provider reported $1.12 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.07 by $0.05. Westamerica Bancorporation had a return on equity of 12.52% and a net margin of 42.75%.The business had revenue of $63.31 million for the quarter, compared to the consensus estimate of $61.90 million. Equities research analysts expect that Westamerica Bancorporation will post 4.35 EPS for the current year.

Westamerica Bancorporation announced that its Board of Directors has initiated a share repurchase plan on Thursday, December 18th that authorizes the company to buyback $2.00 million in outstanding shares. This buyback authorization authorizes the financial services provider to purchase up to 0.2% of its stock through open market purchases. Stock buyback plans are usually an indication that the company's board of directors believes its stock is undervalued.

Westamerica Bancorporation Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, February 13th. Shareholders of record on Monday, February 2nd were given a dividend of $0.46 per share. The ex-dividend date was Monday, February 2nd. This represents a $1.84 dividend on an annualized basis and a yield of 3.5%. Westamerica Bancorporation's dividend payout ratio is 40.71%.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on the company. Weiss Ratings upgraded Westamerica Bancorporation from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Monday, March 23rd. Keefe, Bruyette & Woods boosted their target price on Westamerica Bancorporation from $53.00 to $55.00 and gave the stock a "market perform" rating in a research report on Tuesday, January 20th. Finally, Wall Street Zen downgraded Westamerica Bancorporation from a "hold" rating to a "sell" rating in a research report on Saturday, February 14th. One equities research analyst has rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $52.50.

Institutional Investors Weigh In On Westamerica Bancorporation

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Assenagon Asset Management S.A. purchased a new stake in Westamerica Bancorporation during the third quarter valued at approximately $5,831,000. Y Intercept Hong Kong Ltd raised its holdings in shares of Westamerica Bancorporation by 285.8% in the third quarter. Y Intercept Hong Kong Ltd now owns 58,718 shares of the financial services provider's stock worth $2,935,000 after buying an additional 43,500 shares during the period. CWM LLC raised its holdings in shares of Westamerica Bancorporation by 162.8% in the third quarter. CWM LLC now owns 19,585 shares of the financial services provider's stock worth $979,000 after buying an additional 12,133 shares during the period. JPMorgan Chase & Co. raised its holdings in shares of Westamerica Bancorporation by 43.9% in the third quarter. JPMorgan Chase & Co. now owns 98,266 shares of the financial services provider's stock worth $4,912,000 after buying an additional 29,964 shares during the period. Finally, Summit Global Investments purchased a new stake in shares of Westamerica Bancorporation in the third quarter worth approximately $838,000. 81.89% of the stock is currently owned by hedge funds and other institutional investors.

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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