MARIETTA, Ohio - Peoples Bancorp Inc . (NASDAQ:PEBO) announced on Monday that its Board of Directors has declared a quarterly cash dividend of $0.40 per common share. The dividend is payable on August 19, 2024, to shareholders of record as of August 5, 2024.
The dividend distribution, totaling approximately $14.2 million, represents 49.0% of the company's reported earnings for the second quarter of 2024. With Peoples' common shares closing at $32.89 on July 19, 2024, the dividend yield is calculated at an annualized rate of 4.86%.
Peoples Bancorp Inc., founded in 1902 and headquartered in Marietta, Ohio, operates as a diversified financial services holding company. It offers a broad range of banking, trust and investment, insurance, and premium financing solutions through its subsidiaries.
The company, which is a member of the Russell 3000 index, reported $9.2 billion in total assets as of June 30, 2024. Peoples operates 150 locations, including 130 full-service bank branches across Ohio, Kentucky, West Virginia, Virginia, Washington D.C., and Maryland.
The announcement of the dividend is based on a press release statement from Peoples Bancorp Inc.
In other recent news, Peoples Bancorp has been the subject of various analyst reports. Keefe, Bruyette & Woods adjusted their outlook, reducing the stock's price target from $36.00 to $33.00 citing potential negative impacts from anticipated Federal Reserve rate cuts. Despite this, the firm maintained a Market Perform rating, indicating a steady outlook for the near term.
Meanwhile, DA Davidson adjusted its price target on Peoples Bancorp, decreasing it to $37.00 from the previous $38.00. Despite the reduction, the firm maintains a Buy rating, signaling confidence in the bank's growth trajectory and profitability. The firm anticipates an above-peer return profile for Peoples Bancorp, with strong performance indicators expected to contribute to the expansion of the company's multiples.
In terms of earnings, Peoples Bancorp reported a robust Q1 with earnings of $29.6 million and a diluted earnings per share (EPS) of $0.84. The bank's net interest margin saw a slight compression, while fee-based income remained stable. The bank also reported a strong credit quality and a robust capital position.
Peoples Bancorp is optimistic about the benefits of the Limestone merger and anticipates loan growth of 6-8% for 2024.
InvestingPro Insights
As Peoples Bancorp Inc. (NASDAQ:PEBO) continues to reward its shareholders with a consistent dividend, a closer look at the company’s financial metrics through InvestingPro provides a deeper understanding of its performance and outlook. With a market capitalization of $1.16 billion and a price-to-earnings (P/E) ratio of 9.96, which adjusts to a slightly lower 9.03 when looking at the last twelve months as of Q1 2024, the company appears to be valued reasonably in the current market.
An InvestingPro Tip highlights that Peoples Bancorp has raised its dividend for 8 consecutive years, reflecting a commitment to returning value to shareholders. This is underscored by the fact that the company has maintained dividend payments for an impressive 51 consecutive years, showcasing its financial resilience and dedication to consistent returns. Additionally, the recent strong return over the last month, with a 1-month price total return of 16.82%, and over the last three months, with a 3-month price total return of 15.72%, indicates a positive market sentiment towards the company.
Further supporting this positive outlook is the company’s solid performance in terms of revenue growth, with a notable increase of 24.09% over the last twelve months as of Q1 2024. This growth momentum is also reflected in the quarterly figures, with an 18.02% revenue growth in Q1 2024. Despite concerns over weak gross profit margins, as indicated by another InvestingPro Tip, the company has remained profitable over the last twelve months, and analysts predict it will continue to be profitable this year.
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