Shore Bancshares (NASDAQ:SHBI) Sets New 1-Year High on Earnings Beat

Shore Bancshares Inc (NASDAQ:SHBI) shares hit a new 52-week high during mid-day trading on Friday following a better than expected earnings announcement. The stock traded as high as $23.72 and last traded at $23.72, with a volume of 55869 shares traded. The stock had previously closed at $22.90.

The bank reported $0.60 earnings per share for the quarter, beating the consensus estimate of $0.50 by $0.10. The business had revenue of $61.75 million during the quarter, compared to the consensus estimate of $60.42 million. Shore Bancshares had a return on equity of 11.84% and a net margin of 18.20%.

Shore Bancshares Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, June 17th. Shareholders of record on Wednesday, June 3rd were paid a $0.14 dividend. This is an increase from Shore Bancshares’s previous quarterly dividend of $0.12. This represents a $0.56 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date was Wednesday, June 3rd. Shore Bancshares’s dividend payout ratio (DPR) is presently 29.79%.

Shore Bancshares announced that its Board of Directors has authorized a share buyback plan on Thursday, May 21st that permits the company to repurchase $30.00 million in shares. This repurchase authorization permits the bank to buy up to 4.5% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s management believes its shares are undervalued.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the stock. Piper Sandler lifted their target price on shares of Shore Bancshares from $22.00 to $24.00 and gave the company an “overweight” rating in a report on Friday, June 26th. Keefe, Bruyette & Woods reiterated a “market perform” rating and set a $20.00 price target on shares of Shore Bancshares in a research note on Thursday, April 9th. Zacks Research cut shares of Shore Bancshares from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, June 30th. Finally, Weiss Ratings reissued a “buy (b)” rating on shares of Shore Bancshares in a research report on Friday, July 17th. Three analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $22.00.

Institutional Trading of Shore Bancshares

A number of hedge funds have recently added to or reduced their stakes in SHBI. EverSource Wealth Advisors LLC purchased a new stake in shares of Shore Bancshares during the second quarter worth approximately $31,000. Geneos Wealth Management Inc. purchased a new position in Shore Bancshares in the 4th quarter valued at $48,000. IFP Advisors Inc grew its position in Shore Bancshares by 98.9% in the 3rd quarter. IFP Advisors Inc now owns 3,124 shares of the bank’s stock valued at $51,000 after buying an additional 1,553 shares during the last quarter. Tower Research Capital LLC TRC increased its stake in Shore Bancshares by 239.1% in the 2nd quarter. Tower Research Capital LLC TRC now owns 4,500 shares of the bank’s stock valued at $71,000 after buying an additional 3,173 shares during the period. Finally, State of Alaska Department of Revenue increased its stake in Shore Bancshares by 207.4% in the 4th quarter. State of Alaska Department of Revenue now owns 4,138 shares of the bank’s stock valued at $72,000 after buying an additional 2,792 shares during the period. 59.76% of the stock is owned by institutional investors and hedge funds.

Shore Bancshares Stock Up 3.7%

The company has a market capitalization of $794.44 million, a price-to-earnings ratio of 12.61 and a beta of 0.82. The company has a current ratio of 0.95, a quick ratio of 0.94 and a debt-to-equity ratio of 0.15. The firm’s 50 day simple moving average is $21.83 and its 200-day simple moving average is $19.92.

Shore Bancshares Company Profile

Shore Bancshares, Inc (NASDAQ: SHBI) is the bank holding company for Shore Community Bank, a commercial bank headquartered in Mount Holly, New Jersey. The company provides a full suite of banking and financial services to individuals and businesses, including deposit accounts, consumer and commercial lending, mortgage financing, and cash management solutions. Through its branch network, Shore Bancshares focuses on delivering community-oriented banking services with an emphasis on personalized customer relationships.

Shore Community Bank’s lending portfolio includes commercial real estate, construction loans, agricultural loans, small business loans under government-sponsored programs, and conventional residential mortgages.