Washington Trust Bancorp (NASDAQ:WASH) Trading 8% Higher After Earnings Beat

Washington Trust Bancorp, Inc. (NASDAQ:WASH) shares traded up 8% during trading on Thursday following a better than expected earnings announcement. The stock traded as high as $33.47 and last traded at $32.62. 93,284 shares were traded during trading, a decline of 6% from the average session volume of 99,525 shares. The stock had previously closed at $30.19.

The financial services provider reported $0.83 earnings per share for the quarter, topping the consensus estimate of $0.75 by $0.08. The company had revenue of $59.25 million during the quarter, compared to the consensus estimate of $56.38 million. Washington Trust Bancorp had a return on equity of 9.83% and a net margin of 13.26%.

Washington Trust Bancorp Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, January 14th. Shareholders of record on Friday, January 2nd were issued a $0.56 dividend. The ex-dividend date was Friday, January 2nd. This represents a $2.24 annualized dividend and a yield of 6.5%. Washington Trust Bancorp’s payout ratio is 82.96%.

Trending Headlines about Washington Trust Bancorp

Here are the key news stories impacting Washington Trust Bancorp this week:

• Positive Sentiment: Q4 results beat estimates — WASH reported $0.83 EPS vs. $0.75 consensus and revenue above estimates, driving the immediate positive reaction. Read More.
• Positive Sentiment: Swing to profit and balance-sheet restructuring highlighted — company reported a return to quarterly profit ($52.2M reported in coverage) after restructuring and strategic shifts, which supports improved fundamentals. Read More.
• Positive Sentiment: Zacks Rank upgrade and multiple “Strong Buy” listings — WASH was added to Zacks Rank #1 and to growth, value and income-focused Strong Buy lists, increasing buy-side visibility. Read More.
• Positive Sentiment: Management set targets for 5% loan growth and margin expansion via new commercial hires — this guidance supports revenue and net interest margin improvement assumptions. Read More.
• Neutral Sentiment: Detailed earnings call transcript available — useful for investors wanting color on drivers (credit, expenses, capital actions) but not a standalone catalyst. Read More.
• Negative Sentiment: Keefe, Bruyette & Woods raised target to $34 but kept a “market perform” rating — the $34 target implies limited upside (roughly flat to slightly below current levels), which tempers the bullish momentum. Read More.

Analysts Set New Price Targets

A number of research firms have issued reports on WASH. Keefe, Bruyette & Woods boosted their price target on Washington Trust Bancorp from $30.00 to $34.00 and gave the company a “market perform” rating in a research report on Friday. Piper Sandler set a $32.00 price objective on Washington Trust Bancorp in a research note on Thursday. Finally, Weiss Ratings reissued a “hold (c-)” rating on shares of Washington Trust Bancorp in a research report on Wednesday, January 21st. Three equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Reduce” and a consensus target price of $31.33.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Brown Lisle Cummings Inc. increased its position in shares of Washington Trust Bancorp by 13.6% in the 4th quarter. Brown Lisle Cummings Inc. now owns 46,478 shares of the financial services provider’s stock worth $1,373,000 after purchasing an additional 5,571 shares during the last quarter. Signaturefd LLC grew its stake in Washington Trust Bancorp by 14.0% in the fourth quarter. Signaturefd LLC now owns 3,911 shares of the financial services provider’s stock worth $116,000 after purchasing an additional 481 shares in the last quarter. SG Americas Securities LLC grew its stake in Washington Trust Bancorp by 1,417.2% in the fourth quarter. SG Americas Securities LLC now owns 98,423 shares of the financial services provider’s stock worth $2,908,000 after purchasing an additional 91,936 shares in the last quarter. JPMorgan Chase & Co. increased its holdings in Washington Trust Bancorp by 73.8% in the third quarter. JPMorgan Chase & Co. now owns 44,118 shares of the financial services provider’s stock valued at $1,275,000 after buying an additional 18,735 shares during the last quarter. Finally, Verition Fund Management LLC raised its stake in Washington Trust Bancorp by 19.3% during the third quarter. Verition Fund Management LLC now owns 22,914 shares of the financial services provider’s stock valued at $662,000 after buying an additional 3,701 shares in the last quarter. 65.81% of the stock is owned by institutional investors and hedge funds.

Washington Trust Bancorp Price Performance

The company has a quick ratio of 1.01, a current ratio of 1.02 and a debt-to-equity ratio of 1.53. The company has a 50 day simple moving average of $30.08 and a 200-day simple moving average of $28.93. The stock has a market cap of $654.06 million, a price-to-earnings ratio of 12.73, a PEG ratio of 0.74 and a beta of 0.86.

Washington Trust Bancorp Company Profile

Washington Trust Bancorp, Inc is the bank holding company for The Washington Trust Company, a community bank headquartered in Westerly, Rhode Island. Through its subsidiary, the company operates a network of branch offices across Rhode Island and southeastern Connecticut, serving individuals, small businesses and municipalities with a full suite of financial services.

The company’s core business activities encompass retail and commercial banking, including checking and savings accounts, consumer and commercial loans, mortgage financing, and cash management solutions.