Bank of Marin Stock Climbs Above Key Technical Level
The Novato-based community bank's shares hit $28.04 Thursday, surpassing its 200-day moving average of $25.34 as analysts issue mixed ratings.
The stock surpassed its 200-day moving average of $25.34 during trading, a technical milestone that some investors view as a bullish signal. Trading volume reached 136,142 shares, above typical levels for the regional lender.
Analysts remain divided on the bank’s prospects. Keefe, Bruyette & Woods maintains an “outperform” rating and raised its price target to $30 from $27 in late October. Zacks Research upgraded the stock from “hold” to “strong-buy” around the same time.
However, Wall Street Zen downgraded shares to “sell” from “hold” at the end of January, while Piper Sandler holds a “neutral” rating with a $30.50 price target. Weiss Ratings maintains a “hold” rating on the stock.
The mixed analyst sentiment comes after Bank of Marin reported quarterly earnings that exceeded expectations. The bank posted earnings per share of $0.59 for the quarter ending in January, beating analyst estimates of $0.51 by eight cents.
Despite the earnings beat, the bank reported unusual financial metrics, including a negative net margin of 21.76% and revenue of negative $35.47 million for the quarter, compared to analyst estimates of $32.96 million in revenue.
Bank of Marin serves individuals, small businesses and nonprofits across the North Bay through its network of branches. The community bank focuses on personalized service and local relationships in Marin, Sonoma and Napa counties.
The company recently paid a quarterly dividend of $0.25 per share to shareholders of record as of February 5, representing an annualized dividend yield of 3.7%. However, the bank’s dividend payout ratio currently sits at negative 44.44%.
Institutional investors have been active in the stock recently. Russell Investments Group boosted its position by 2,543.8% in the third quarter, now holding 1,269 shares worth about $31,000. Tower Research Capital increased its holdings by 124.6% in the second quarter.
Based on analyst coverage tracked by MarketBeat, Bank of Marin holds an average rating of “Moderate Buy” with a consensus price target of $30.10. Analysts forecast the bank will post earnings per share of $1.61 for the current fiscal year.