TowneBank (NASDAQ:TOWN – Get Rating) declared a quarterly dividend on Thursday, May 26, The Wall Street Journal reports. Investors of record on Thursday, June 30 will receive a dividend of 0.23 per share from the bank on Tuesday, July 12. This represents a dividend of $0.92 on an annualized basis and a yield of 3.16%. The ex-dividend date is Wednesday, June 29. This is a boost from TowneBank’s previous quarterly dividend of $0.20.
TowneBank has increased its dividend payout by an average of 8.0% per year over the past three years and has increased its dividend every year for the past 11 consecutive years. TowneBank has a dividend payout ratio of 28.5%, which means its dividend is sufficiently covered by earnings. Equity research analysts expect TowneBank to earn $2.79 per share next year, meaning the company should continue to be able to cover its $0.80 annual dividend with a expected future payout ratio of 28.7%.
NASDAQ:TOWN rose $0.32 in Thursday’s midday session, hitting $29.13. 129,624 shares of the company were traded, against an average volume of 220,757. TowneBank has a 12-month low of $27.27 and a 12-month high of $34.79. The company has a market capitalization of $2.12 billion, a price-earnings ratio of 11.03 and a beta of 0.98. The company has a fifty-day moving average price of $29.06 and a 200-day moving average price of $30.86.
A number of institutional investors have recently changed their positions in the company. Morgan Stanley increased its stake in TowneBank shares by 45.1% in Q2. Morgan Stanley now owns 114,388 shares of the bank worth $3,480,000 after buying 35,576 more shares last quarter. LPL Financial LLC increased its holdings of TowneBank shares by 2.3% in Q3. LPL Financial LLC now owns 15,433 shares of the bank worth $480,000 after acquiring 353 additional shares in the last quarter. Janus Henderson Group PLC acquired a new position in TowneBank shares in Q3 worth $228,000. BNP Paribas Arbitrage SA increased its stake in TowneBank shares by 103.0% in the third quarter. BNP Paribas Arbitrage SA now owns 18,974 shares in the bank worth $590,000 after acquiring 9,628 additional shares in the last quarter. Finally, Bank of New York Mellon Corp increased its holdings of TowneBank shares by 3.6% in the third quarter. Bank of New York Mellon Corp now owns 498,930 shares of the bank worth $15,522,000 after acquiring 17,116 additional shares in the last quarter.
Several brokerages have weighed in on TOWN. StockNews.com began covering TowneBank in a research note on Thursday, March 31. They have placed a “holding” rating on the stock. Zacks Investment Research upgraded TowneBank from a “hold” rating to a “strong-buy” rating and set a target price of $36.00 on the stock in a Friday, Feb. 4 research note.
About TowneBank (Get a rating)
TowneBank provides retail and commercial banking services to individuals, commercial enterprises and professionals. The Company operates through three segments: Banking, Real Estate and Insurance. It accepts various deposits, including demand deposits, savings accounts, cash savings, certificates of deposit, and individual retirement accounts.
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