Eagle Bancorp (NASDAQ:EGBN) Sets New 1-Year High on Strong Earnings

Eagle Bancorp, Inc. (NASDAQ:EGBN) shares reached a new 52-week high during trading on Thursday following a stronger than expected earnings report. The stock traded as high as $29.26 and last traded at $28.06, with a volume of 623830 shares. The stock had previously closed at $24.03.

The financial services provider reported $0.25 earnings per share for the quarter, topping analysts’ consensus estimates of ($0.12) by $0.37. Eagle Bancorp had a negative return on equity of 10.81% and a negative net margin of 20.19%.The company had revenue of $80.50 million during the quarter, compared to analysts’ expectations of $67.81 million.

Eagle Bancorp Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, February 13th. Shareholders of record on Monday, February 2nd will be issued a $0.01 dividend. This represents a $0.04 dividend on an annualized basis and a yield of 0.1%. The ex-dividend date of this dividend is Monday, February 2nd. Eagle Bancorp’s payout ratio is currently -1.01%.

Key Stories Impacting Eagle Bancorp

Here are the key news stories impacting Eagle Bancorp this week:

• Positive Sentiment: Q4 earnings beat and return to profit — Eagle reported EPS of $0.25 vs. a consensus loss and revenue of $80.5M that topped estimates; the company swung to net income of $7.6M after a large prior-quarter loss. GlobeNewswire: Q4 Results & Cash Dividend
• Positive Sentiment: Big reduction in credit provisioning — provision for credit losses fell sharply (Q4 $15.5M vs. Q3 $113.2M), driving most of the quarter-to-quarter improvement and signaling early progress on credit remediation. QuiverQuant: Q4 Results Summary
• Positive Sentiment: Asset-quality improvements — nonperforming assets and net charge-offs declined meaningfully, and ACL coverage ticked higher (ACL ~2.19% of loans), reducing some investor concern over stressed CRE/construction exposures. Seeking Alpha: Q4 Earnings Call Transcript
• Positive Sentiment: Small cash dividend declared — board approved $0.01/share, signaling a willingness to resume shareholder distributions as capital stabilizes. GlobeNewswire: Dividend Announcement
• Neutral Sentiment: Management commentary and investor materials provide a plan — CEO highlighted continued asset dispositions, funding mix improvements and concentration reductions; more detail in the earnings deck and call transcript for positioning going into 1Q. Seeking Alpha: Call Transcript
• Negative Sentiment: Rising noninterest expenses — noninterest expense jumped (~$59.8M vs. $41.9M prior quarter) driven by loan disposition costs and valuation adjustments, which pressured PPNR and efficiency. Zacks: Q4 Results & Expense Detail
• Negative Sentiment: Deposit and margin pressures — total deposits fell ~4% QoQ and NIM compressed to 2.38% (from 2.43%), reflecting funding mix shifts and lower market rates that could restrain net interest income growth. GlobeNewswire: Loans, Deposits & NIM

Wall Street Analyst Weigh In

Several research firms recently weighed in on EGBN. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Eagle Bancorp in a research note on Wednesday, October 8th. Piper Sandler cut their price target on shares of Eagle Bancorp from $22.00 to $19.00 and set a “neutral” rating on the stock in a research note on Monday, October 27th. Finally, Zacks Research upgraded shares of Eagle Bancorp from a “strong sell” rating to a “hold” rating in a report on Wednesday, December 3rd. One analyst has rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $21.25.

Insider Activity

In other Eagle Bancorp news, CFO Eric R. Newell acquired 3,050 shares of Eagle Bancorp stock in a transaction that occurred on Friday, November 14th. The stock was purchased at an average cost of $16.55 per share, with a total value of $50,477.50. Following the purchase, the chief financial officer owned 33,615 shares in the company, valued at approximately $556,328.25. The trade was a 9.98% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Louis P. Jr. Mathews purchased 1,500 shares of the firm’s stock in a transaction dated Friday, November 21st. The shares were bought at an average price of $17.20 per share, with a total value of $25,800.00. Following the purchase, the director owned 10,157 shares in the company, valued at $174,700.40. This represents a 17.33% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last 90 days, insiders have acquired 6,050 shares of company stock worth $101,538. Corporate insiders own 3.39% of the company’s stock.

Hedge Funds Weigh In On Eagle Bancorp

Hedge funds have recently added to or reduced their stakes in the company. Jupiter Asset Management Ltd. increased its holdings in shares of Eagle Bancorp by 112.5% in the second quarter. Jupiter Asset Management Ltd. now owns 357,404 shares of the financial services provider’s stock worth $6,962,000 after acquiring an additional 189,233 shares in the last quarter. Allianz Asset Management GmbH bought a new stake in Eagle Bancorp in the 2nd quarter valued at $831,000. Hennessy Advisors Inc. boosted its holdings in shares of Eagle Bancorp by 40.0% during the second quarter. Hennessy Advisors Inc. now owns 140,000 shares of the financial services provider’s stock worth $2,727,000 after acquiring an additional 40,000 shares during the period. Walleye Capital LLC grew its stake in shares of Eagle Bancorp by 330.0% in the second quarter. Walleye Capital LLC now owns 79,335 shares of the financial services provider’s stock valued at $1,545,000 after acquiring an additional 60,883 shares in the last quarter. Finally, Y Intercept Hong Kong Ltd raised its holdings in Eagle Bancorp by 998.3% in the 2nd quarter. Y Intercept Hong Kong Ltd now owns 158,227 shares of the financial services provider’s stock valued at $3,082,000 after acquiring an additional 143,820 shares in the last quarter. Institutional investors own 78.03% of the company’s stock.

Eagle Bancorp Price Performance

The business’s 50 day moving average is $20.78 and its 200-day moving average is $19.65. The firm has a market capitalization of $846.72 million, a P/E ratio of -6.62 and a beta of 1.02. The company has a quick ratio of 0.84, a current ratio of 0.86 and a debt-to-equity ratio of 0.07.

About Eagle Bancorp

Eagle Bancorp, Inc is the bank holding company for EagleBank, a commercial bank headquartered in Bethesda, Maryland. Since its founding in 1998, the company has focused on serving businesses and consumers in the Washington, DC metropolitan area. EagleBank operates a network of full-service branches and commercial banking centers, providing personalized financial solutions to corporate, nonprofit, real estate and individual clients.

The company’s product portfolio includes commercial real estate lending, construction and land development financing, small business administration (SBA) loans, commercial and industrial credit facilities, and residential mortgage loans.