Old Second Bancorp (NASDAQ:OSBC) Shares Gap Down on Disappointing Earnings

Old Second Bancorp, Inc. (NASDAQ:OSBC) shares gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $21.21, but opened at $19.85. Old Second Bancorp shares last traded at $20.5190, with a volume of 125,911 shares trading hands.

The financial services provider reported $0.49 earnings per share for the quarter, missing analysts’ consensus estimates of $0.52 by ($0.03). The firm had revenue of $93.77 million for the quarter, compared to analyst estimates of $94.80 million. Old Second Bancorp had a net margin of 20.07% and a return on equity of 12.92%.

Old Second Bancorp Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, May 11th. Shareholders of record on Friday, May 1st will be given a dividend of $0.07 per share. This represents a $0.28 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date of this dividend is Friday, May 1st. Old Second Bancorp’s dividend payout ratio is currently 17.18%.

Old Second Bancorp News Summary

Here are the key news stories impacting Old Second Bancorp this week:

• Positive Sentiment: Board declared a quarterly cash dividend of $0.07 per share (annualized yield ~1.3%), providing a modest income cue for shareholders.
• Positive Sentiment: Profitability metrics remain healthy — reported return on equity ~12.79% and a net margin of 20%, indicating underlying earning power. Press Release — Q1 Results
• Neutral Sentiment: Company reported net income of $25.6 million, or $0.48 per diluted share, in the press release — a clear numeric readout but down from the prior quarter’s figure. AccessNewswire — Q1 Net Income
• Neutral Sentiment: Revenue came in at $93.77M, roughly in line with expectations but slightly below the consensus ~$94.8M, so top-line performance was effectively flat/tepid. MSN — Revenue In Line
• Negative Sentiment: Earnings per share missed Street estimates: $0.49 reported vs. ~$0.52 consensus — the miss is the primary catalyst for downward pressure on the stock. Zacks — EPS Miss
• Negative Sentiment: Analyst write-ups and the earnings call highlight higher credit costs that offset margin strength, creating a mixed operational picture and raising near-term earnings uncertainty. MSN — Deep Dive on Credit Costs Fool — Earnings Call Transcript
• Negative Sentiment: Trading volume spiked well above average as investors reacted to the mixed print and guidance commentary, amplifying the share-price decline.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on the stock. DA Davidson increased their target price on shares of Old Second Bancorp from $22.00 to $23.00 and gave the company a “neutral” rating in a research report on Friday, January 23rd. Stephens assumed coverage on shares of Old Second Bancorp in a research report on Friday, March 27th. They set an “overweight” rating and a $23.00 target price for the company. Finally, Weiss Ratings reissued a “buy (b-)” rating on shares of Old Second Bancorp in a research report on Thursday, January 22nd. Four analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $23.38.

Insider Activity at Old Second Bancorp

In related news, EVP Richard A. Gartelmann, Jr. sold 2,000 shares of the stock in a transaction on Thursday, February 5th. The stock was sold at an average price of $20.98, for a total value of $41,960.00. Following the transaction, the executive vice president directly owned 24,874 shares in the company, valued at $521,856.52. This trade represents a 7.44% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Darin Patrick Campbell sold 35,000 shares of the stock in a transaction on Wednesday, February 18th. The stock was sold at an average price of $20.94, for a total value of $732,900.00. Following the completion of the transaction, the insider owned 274,589 shares in the company, valued at approximately $5,749,893.66. This represents a 11.31% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 37,091 shares of company stock valued at $776,744. Insiders own 3.80% of the company’s stock.

Hedge Funds Weigh In On Old Second Bancorp

A number of large investors have recently modified their holdings of OSBC. Boston Partners bought a new position in shares of Old Second Bancorp in the 4th quarter worth $15,994,000. Wellington Management Group LLP lifted its holdings in shares of Old Second Bancorp by 521.2% in the 4th quarter. Wellington Management Group LLP now owns 969,708 shares of the financial services provider’s stock worth $18,909,000 after purchasing an additional 813,600 shares in the last quarter. Goldman Sachs Group Inc. lifted its holdings in shares of Old Second Bancorp by 74.3% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,478,332 shares of the financial services provider’s stock worth $24,599,000 after purchasing an additional 630,265 shares in the last quarter. Vanguard Group Inc. lifted its holdings in shares of Old Second Bancorp by 20.4% in the 3rd quarter. Vanguard Group Inc. now owns 3,269,993 shares of the financial services provider’s stock worth $56,522,000 after purchasing an additional 553,169 shares in the last quarter. Finally, River Street Advisors LLC bought a new position in shares of Old Second Bancorp in the 3rd quarter worth $6,637,000. 67.76% of the stock is currently owned by institutional investors.

Old Second Bancorp Trading Down 6.4%

The business has a fifty day moving average of $20.32 and a 200-day moving average of $19.64. The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.91 and a current ratio of 0.91. The company has a market capitalization of $1.03 billion, a P/E ratio of 11.82 and a beta of 0.74.

Old Second Bancorp Company Profile

Old Second Bancorp, Inc is a bank holding company based in Aurora, Illinois, serving businesses and consumers through its primary subsidiary, Old Second National Bank. The company provides a broad range of commercial and retail banking services across the suburban Chicago marketplace, supported by a branch network and online platforms designed to meet the financial needs of local communities.

In its commercial banking division, Old Second offers lending solutions that include lines of credit, term loans, equipment financing and commercial real estate financing.