With a forward dividend & yield of 0.72 and 3.94%, TowneBank [NASDAQ:TOWN] has active tape with a current price of $18.64 against an analyst price target of 20.33.
For the year, the stock is trading -34.33% and the five-day change stands at 6.16%. As a point of reference, the S&P 500 is trading 1.11% YTD.
Other data to note about the company today is the Recommendation Trend that is leaning toward TowneBank [TOWN] as Hold.
Wait and see
Holding a Market Cap of $1.35 billion, TowneBank has seen a trading range over the last year of $15.03-$29.02.
For the last five days, TOWN is up from its last closing price. The average shares trading hands each day is 201.83K, with average 10-day volume coming in at 0.26 million.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for TOWN. When we apply the Elder Force Index to TowneBank, we are seeing an Elder Force Indicator number of 217291.75.
The recent performance of the stock is another area that can tell traders how to proceed. TOWN is presenting an interesting case. This can be seen in the Forward P/E ratio, which currently stands at 15.06.
In the last quarter, TOWN made a profit of 89.5 million. In addition, the company has operating cash flow of -$61.67 million.
Looking at popular technical indicators, the company’s 5-day moving average is 18.29 compared to the 50-day moving average of 17.29. So, we are clearly seeing an upward trajectory here.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. TOWN currently holds a 9-day RSI of 72.16%, while 100-day RSI stands at 48.33%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. TOWN’s 9-day MACD is 0.79 and the company’s 100-day MACD stands at 0.38.
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 9.58% by insiders and 49.56% by institutions. Regarding institutional holdings, Vanguard Group, Inc. (The) owns 12.14%, while the second top holder, Price (T.Rowe) Associates Inc, currently owns 10.45%.
Overall, the recommended rating for TOWN is Hold. Currently, the company has 4 analysts watching the stock, and the average quarterly earnings estimate is 0.47. Quarterly revenue estimates are averaging 155.64M with the high estimate reaching 161.38M and the low at 152.4M.
To review, the current 1-year target estimate is sitting at 20.33, while the current price 18.64. Based on this, we expect the stock to rise considering the aforementioned fundamentals.