OceanFirst Financial (NASDAQ:OCFC) Stock Price Up 5% Following Earnings Beat

OceanFirst Financial Corp. (NASDAQ:OCFC) shares rose 5% during trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $17.48 and last traded at $17.5050. Approximately 203,920 shares were traded during mid-day trading, a decline of 77% from the average session volume of 898,631 shares. The stock had previously closed at $16.67.

The savings and loans company reported $0.48 EPS for the quarter, beating the consensus estimate of $0.40 by $0.08. The business had revenue of $185.13 million during the quarter, compared to analysts’ expectations of $177.79 million.

OceanFirst Financial Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, November 20th. Investors of record on Monday, November 9th will be paid a $0.20 dividend. The ex-dividend date of this dividend is Monday, November 9th. This represents a $0.80 dividend on an annualized basis and a yield of 4.6%. OceanFirst Financial’s dividend payout ratio (DPR) is currently 94.12%.

More OceanFirst Financial News

Here are the key news stories impacting OceanFirst Financial this week:

• Positive Sentiment: Quarterly results exceeded expectations. OceanFirst reported adjusted earnings of $0.48 per share, above the $0.40 consensus estimate, while revenue reached approximately $185.1 million versus expectations of $177.8 million. Adjusted EPS also increased from $0.36 a year earlier. OceanFirst Financial Q3 Earnings and Revenues Top Estimates
• Positive Sentiment: Loan and deposit growth improved. Total loans increased $215.7 million sequentially, including $325 million of commercial-loan growth, while deposits rose $319.3 million to $18.1 billion. Net interest margin expanded to 3.18% from 3.05% in the prior quarter and 2.91% a year earlier. OceanFirst Financial Reports Improved Core Earnings and Loan Growth
• Positive Sentiment: The quarterly dividend was maintained. The company declared a $0.20-per-share dividend payable November 20 to shareholders of record November 9. The annualized payout is $0.80 per share, representing an indicated yield of about 4.8% based on the provided stock information. OceanFirst Financial Announces Third Quarter Financial Results
• Neutral Sentiment: Merger integration is progressing but remains costly. OceanFirst completed the Flushing acquisition’s core-system conversion and integration in September, but the quarter included $37.1 million in merger-related expenses.
• Negative Sentiment: GAAP profitability declined year over year. Net income available to common stockholders fell to $16.5 million, or $0.17 per diluted share, from $17.3 million, or $0.30, a year earlier. Nine-month net income dropped to $33.9 million from $54.0 million, partly reflecting acquisition-related costs. OceanFirst Financial Reports Third-Quarter and Nine-Month Results

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the company. Piper Sandler decreased their target price on OceanFirst Financial from $21.00 to $18.00 and set a “neutral” rating on the stock in a research report on Tuesday, October 6th. Weiss Ratings cut OceanFirst Financial from a “hold (c+)” rating to a “hold (c)” rating in a research report on Friday, September 25th. Four research analysts have rated the stock with a Hold rating. According to MarketBeat.com, OceanFirst Financial currently has a consensus rating of “Hold” and a consensus target price of $19.00.

Insider Activity

In related news, EVP Brian Schaeffer sold 5,500 shares of the company’s stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $18.91, for a total value of $104,005.00. Following the transaction, the executive vice president directly owned 83,068 shares in the company, valued at approximately $1,570,815.88. This represents a 6.21% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director John Buran sold 113,463 shares of the stock in a transaction on Friday, August 7th. The stock was sold at an average price of $19.40, for a total value of $2,201,182.20. The SEC filing for this sale provides additional information. Insiders own 5.40% of the company’s stock.

Institutional Investors Weigh In On OceanFirst Financial

A number of hedge funds have recently added to or reduced their stakes in OCFC. BlackRock Inc. purchased a new position in OceanFirst Financial in the second quarter valued at $194,135,000. Wellington Management Group LLP increased its holdings in OceanFirst Financial by 58.5% during the 2nd quarter. Wellington Management Group LLP now owns 4,114,069 shares of the savings and loans company’s stock worth $80,348,000 after purchasing an additional 1,518,636 shares during the period. Bank of New York Mellon Corp purchased a new stake in OceanFirst Financial during the 2nd quarter worth about $12,593,000. Bank of America Corp DE acquired a new stake in OceanFirst Financial in the 2nd quarter valued at about $10,209,000. Finally, The Manufacturers Life Insurance Company acquired a new stake in OceanFirst Financial in the 2nd quarter valued at about $9,556,000. 70.98% of the stock is currently owned by institutional investors and hedge funds.

OceanFirst Financial Stock Performance

The business has a 50-day simple moving average of $17.58 and a 200-day simple moving average of $18.47. The company has a market cap of $1.69 billion, a price-to-earnings ratio of 20.61 and a beta of 1.02.

OceanFirst Financial Company Profile

OceanFirst Financial Corp. (NASDAQ:OCFC) is the bank holding company for OceanFirst Bank, a full-service community bank headquartered in Toms River, New Jersey. The company provides banking and financial services to individuals, families, businesses, and nonprofit organizations.

OceanFirst Bank offers deposit products, residential and commercial real estate lending, business loans, consumer loans, mortgage services, online and mobile banking, and cash-management solutions. Through its wealth-management operations, the company also provides investment management, trust, and financial-planning services.

Founded in 1902, OceanFirst has grown from a savings institution serving the Jersey Shore into a regional banking organization.