Westamerica Bancorporation (NASDAQ:WABC) Sets New 12-Month High – Still a Buy?

Westamerica Bancorporation (NASDAQ:WABC)’s stock price hit a new 52-week high on Wednesday . The company traded as high as $53.56 and last traded at $53.99, with a volume of 312 shares changing hands. The stock had previously closed at $52.62.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on WABC. Keefe, Bruyette & Woods boosted their price objective on shares of Westamerica Bancorporation from $53.00 to $55.00 and gave the company a “market perform” rating in a research report on Tuesday, January 20th. Weiss Ratings raised shares of Westamerica Bancorporation from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Monday, March 23rd. Finally, Wall Street Zen lowered shares of Westamerica Bancorporation from a “hold” rating to a “sell” rating in a research note on Saturday, February 14th. One analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat, Westamerica Bancorporation has a consensus rating of “Hold” and a consensus target price of $52.50.

Westamerica Bancorporation Stock Up 2.3%

The firm’s 50 day moving average is $51.34 and its 200 day moving average is $49.42. The firm has a market capitalization of $1.30 billion, a price-to-earnings ratio of 11.92 and a beta of 0.57.

Westamerica Bancorporation (NASDAQ:WABC) last issued its quarterly earnings results on Thursday, January 15th. The financial services provider reported $1.12 earnings per share for the quarter, topping analysts’ consensus estimates of $1.07 by $0.05. The firm had revenue of $63.31 million for the quarter, compared to analysts’ expectations of $61.90 million. Westamerica Bancorporation had a return on equity of 12.52% and a net margin of 42.75%. On average, sell-side analysts predict that Westamerica Bancorporation will post 4.35 earnings per share for the current year.

Westamerica Bancorporation Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, February 13th. Investors of record on Monday, February 2nd were given a $0.46 dividend. This represents a $1.84 annualized dividend and a dividend yield of 3.4%. The ex-dividend date was Monday, February 2nd. Westamerica Bancorporation’s dividend payout ratio is 40.71%.

Westamerica Bancorporation announced that its Board of Directors has approved a stock buyback plan on Thursday, December 18th that permits the company to repurchase $2.00 million in shares. This repurchase authorization permits the financial services provider to reacquire up to 0.2% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s board believes its shares are undervalued.

Institutional Investors Weigh In On Westamerica Bancorporation

Several hedge funds have recently made changes to their positions in the company. Assenagon Asset Management S.A. acquired a new position in Westamerica Bancorporation in the 3rd quarter valued at approximately $5,831,000. Y Intercept Hong Kong Ltd increased its stake in Westamerica Bancorporation by 285.8% in the 3rd quarter. Y Intercept Hong Kong Ltd now owns 58,718 shares of the financial services provider’s stock valued at $2,935,000 after buying an additional 43,500 shares during the period. Arrowstreet Capital Limited Partnership increased its stake in Westamerica Bancorporation by 87.2% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 309,953 shares of the financial services provider’s stock valued at $15,014,000 after buying an additional 144,405 shares during the period. CWM LLC increased its stake in Westamerica Bancorporation by 162.8% in the 3rd quarter. CWM LLC now owns 19,585 shares of the financial services provider’s stock valued at $979,000 after buying an additional 12,133 shares during the period. Finally, JPMorgan Chase & Co. increased its stake in Westamerica Bancorporation by 43.9% in the 3rd quarter. JPMorgan Chase & Co. now owns 98,266 shares of the financial services provider’s stock valued at $4,912,000 after buying an additional 29,964 shares during the period. Hedge funds and other institutional investors own 81.89% of the company’s stock.

About Westamerica Bancorporation

Westamerica Bancorporation (NASDAQ: WABC) is a California-based bank holding company that provides a comprehensive suite of commercial banking, trust and wealth management services. Through its primary subsidiary, Westamerica Bank, the company offers deposit products, lending solutions and treasury management to a diverse clientele that includes small and mid-sized businesses, professionals, non-profit organizations and individuals.

The company’s lending portfolio encompasses commercial real estate financing, agricultural loans, equipment financing and lines of credit designed to support working capital needs.