Amerant Bancorp Inc. to Issue Quarterly Dividend of $0.09

Amerant Bancorp Inc. (NASDAQ:AMTB) recently announced that it will issue a quarterly dividend of $0.09 per share to its stockholders. This announcement was made on Wednesday, October 23rd. Stockholders who are on record as of Thursday, November 14th, will receive their dividend payments on Friday, November 29th. This move reflects an annualized dividend of $0.36, which translates to a dividend yield of 1.74%. It's important to note that the ex-dividend date for this distribution is also set for Thursday, November 14th.

Understanding Amerant Bancorp's Dividend Coverage

Amerant Bancorp has a current payout ratio of 17.7%, indicating that its earnings are strong enough to comfortably cover this dividend. Analysts predict that the company will generate earnings of $2.00 per share in the upcoming year, suggesting that the anticipated future payout ratio will be around 18.0%. This bodes well for the company’s ability to maintain or potentially grow its dividend.

Stock Performance

On Thursday, Amerant Bancorp's shares experienced a rise of 1.9%, increasing by $0.39 to reach $20.66. The trading volume for the day was 188,559 shares, exceeding the average volume of 125,405 shares. The firm boasts a market capitalization of approximately $696.57 million and possesses a price-to-earnings ratio of 30.56. The company’s beta stands at 0.99, suggesting a relatively stable performance compared to the market. With a debt-to-equity ratio of 1.25 and liquidity ratios of 0.89 (quick ratio) and 0.97 (current ratio), the company appears financially sound. Amerant Bancorp's stock has fluctuated between a 12-month low of $16.90 and a high of $27.00.

Earnings Report and Analyst Insights

The last earnings report from Amerant Bancorp was released on July 24th, where the company posted earnings of $0.28 per share. This figure was below analysts' expectations, which had anticipated earnings of $0.35, resulting in a miss of $0.07. However, the company’s revenue of $98.78 million surpassed expectations of $93.19 million. For comparison, during the same quarter last year, Amerant earned $0.24 per share. Analysts forecast a total earnings per share of 1.15 for the current year.

Brokerage Ratings

Recent reports from a number of brokerages reflect varying opinions on Amerant Bancorp's stock. Keefe, Bruyette & Woods lowered their price target from $26.00 to $24.00 and rated the stock as 'market perform.' Conversely, Piper Sandler shifted their rating from 'neutral' to 'overweight,' increasing their price target from $26.00 to $26.50. Raymond James reduced their price target from $27.00 to $25.00 while maintaining an 'outperform' rating. Meanwhile, Stephens also upgraded their rating to 'overweight' with a target price increase to $25.00. Currently, two analysts recommend holding the stock while three have a buy rating, leading to a consensus rating of 'Moderate Buy' with an average target price set at $25.10.

About Amerant Bancorp

Amerant Bancorp Inc. operates as a bank holding company for Amerant Bank, N.A. The company offers various banking products and services to individuals and businesses in the U.S. and internationally. Their services include checking and savings accounts, business accounts, cash management, and certificates of deposit.

Dividend, Stock, Finance