TowneBank (TOWN) raised its quarterly dividend by 11.1% to $0.20 per share. The company is a provider of retail and commercial banking services.
The dividend is payable on July 9 to shareholders of record on June 30. TowneBank’s annual dividend of $0.80 per share now reflects a dividend yield of 2.5%.
On April 29, TowneBank reported strong Q1 results. Earnings of $0.95 per share outpaced the Street’s estimates of $0.63. Total revenues of $182.5 million were above the consensus estimate of $164.84 million and increased 32.5% year-over-year. (See TowneBank stock analysis on TipRanks)
Following the Q1 earnings announcement, Raymond James analyst William Wallace maintained a Hold rating on the stock.
Wallace said, “We continue to believe the risk/reward dynamic remains balanced at these levels, as a longer deferral tail is effectively offset by generally solid core results.”
The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating. That’s based on 1 Buy versus 2 Holds. The average analyst price target of $34.50 implies almost 8% upside potential to current levels. Shares have increased 40.5% over the past six months.
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