Old Second Bancorp, Inc. (NASDAQ: OSBC) achieved a significant milestone by reaching a new 52-week high of $19.49 during mid-day trading on Wednesday, October 22, 2023. The stock closed at $19.4840 after a substantial trading volume of 228,874 shares. This increase follows a previous close of $18.93 and reflects a growing interest in the company’s financial performance.
Analysts on Wall Street have taken notice of Old Second Bancorp’s recent performance and have issued upgraded ratings. Wall Street Zen moved the stock from a “sell” to a “hold” rating on October 25. Additionally, Weiss Ratings reaffirmed a “buy (B-)” rating on October 8. Keefe, Bruyette & Woods further raised their target price for the stock from $22.00 to $23.00, classifying it as “outperform” on October 24. Currently, one analyst has assigned a Strong Buy rating, while four others rate it as Buy and one as Hold. The consensus rating stands at “Buy,” with a price target of $21.63, according to MarketBeat.com.
Strong Earnings Report and Dividend Announcement
In its latest quarterly earnings report, Old Second Bancorp announced earnings per share (EPS) of $0.53, surpassing the consensus estimate of $0.51 by $0.02. The company’s revenue for the quarter reached $95.88 million, significantly exceeding analyst expectations of $80.45 million. With a net margin of 18.89% and a return on equity of 12.34%, the figures signal robust financial health. Analysts project that Old Second Bancorp will post an EPS of 1.86 for the current fiscal year.
The company has also declared a quarterly dividend of $0.07, which was paid to stockholders on November 10, 2023. The ex-dividend date was October 31. This dividend represents an annualized amount of $0.28, resulting in a dividend yield of 1.4%. The dividend payout ratio currently stands at 18.54%, indicating a sustainable approach to shareholder returns.
Insider Transactions and Institutional Activity
In related developments, insider Darin Patrick Campbell sold 31,159 shares on October 31 at an average price of $17.89, totaling approximately $557,434.51. This transaction was disclosed in a filing with the Securities and Exchange Commission.
Institutional investors have also been active in Old Second Bancorp. Notably, Nuveen LLC entered a new position valued at around $5.6 million during the first quarter. Other firms, such as Martingale Asset Management and Vanguard Group, have also increased their stakes in the company. Currently, institutional investors and hedge funds own 67.76% of Old Second Bancorp’s stock, reflecting strong institutional confidence in the financial institution.
Old Second Bancorp, Inc. operates as a bank holding company for Old Second National Bank, providing a range of community banking services. Its offerings include demand, savings, and checking accounts, as well as various loan products tailored to both personal and commercial needs. As the company continues to perform well in the market, investors remain keenly interested in its prospects.
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