Towne Bank (NASDAQ:TOWN) Stock Price Breaks Below 200-Day Moving Average – Time to Sell?

Shares of Towne Bank (NASDAQ:TOWN) passed below its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $35.82 and traded as low as $34.67. Towne Bank shares last traded at $34.98, with a volume of 760,079 shares traded.

Analysts Set New Price Targets

Several research analysts recently weighed in on the stock. Zacks Research upgraded shares of Towne Bank from a “strong sell” rating to a “hold” rating in a research report on Monday, June 29th. Weiss Ratings downgraded Towne Bank from a “buy (a-)” rating to a “buy (b+)” rating in a research note on Friday, October 2nd. Two analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $39.50.

Towne Bank Stock Performance

The firm has a market capitalization of $2.76 billion, a price-to-earnings ratio of 9.82 and a beta of 0.71. The firm has a 50 day moving average price of $37.05 and a 200-day moving average price of $35.84. The company has a debt-to-equity ratio of 0.04, a current ratio of 0.90 and a quick ratio of 0.88.

Towne Bank (NASDAQ:TOWN) last issued its earnings results on Thursday, July 23rd. The bank reported $0.78 earnings per share for the quarter, missing the consensus estimate of $0.79 by ($0.01). Towne Bank had a net margin of 25.64% and a return on equity of 9.60%. The firm had revenue of $245.72 million during the quarter, compared to analyst estimates of $245.33 million. As a group, sell-side analysts expect that Towne Bank will post 3.13 earnings per share for the current fiscal year.

Towne Bank Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 9th. Shareholders of record on Friday, September 25th will be given a dividend of $0.28 per share. The ex-dividend date is Friday, September 25th. This represents a $1.12 dividend on an annualized basis and a yield of 3.2%. Towne Bank’s dividend payout ratio is presently 31.46%.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Abound Financial LLC acquired a new position in Towne Bank in the 4th quarter valued at about $27,000. Public Employees Retirement System of Ohio acquired a new position in Towne Bank in the second quarter valued at $33,000. Farther Finance Advisors LLC grew its holdings in Towne Bank by 75.2% in the 3rd quarter. Farther Finance Advisors LLC now owns 990 shares of the bank’s stock valued at $35,000 after buying an additional 425 shares during the period. Nykredit A S acquired a new position in shares of Towne Bank during the 2nd quarter valued at about $45,000. Finally, CrossGen Wealth LLC acquired a new position in shares of Towne Bank in the 4th quarter valued at $53,000. 55.99% of the stock is owned by hedge funds and other institutional investors.

About Towne Bank

TowneBank is a community-focused financial services company headquartered in Portsmouth, Virginia. Through its banking subsidiary, TowneBank provides deposit accounts, consumer and commercial lending, mortgage services, treasury management, online and mobile banking, and other financial products to individuals, families, businesses, and nonprofit organizations.

The company also operates complementary businesses serving the needs of its banking customers, including wealth management, insurance, and real estate services.