Orrstown Financial Services (NASDAQ:ORRF) Rating Lowered to Sell at Zacks Investment Research

Zacks Investment Research downgraded shares of Orrstown Financial Services (NASDAQ:ORRF) from a hold rating to a sell rating in a research report sent to investors on Friday, Zacks.com reports.

According to Zacks, “Orrstown Financial Services, Inc. is a financial holding company. The Company’s primary activity consists of owning and supervising its subsidiary, Orrstown Bank, that is engaged in providing banking and bank related services. The Bank provides these services in south central Pennsylvania, principally Franklin, Perry and Cumberland Counties in Pennsylvania and in Washington County, Maryland. The Company’s subsidiary is The First National Bank of Newport. The day-to-day management of the Bank is conducted by the subsidiary’s officers. “

A number of other brokerages have also weighed in on ORRF. Sandler O’Neill lowered shares of Orrstown Financial Services from a buy rating to a hold rating and decreased their price target for the company from $22.00 to $21.50 in a report on Friday, March 29th. Hovde Group initiated coverage on shares of Orrstown Financial Services in a report on Friday, May 31st. They issued an outperform rating and a $25.00 price target on the stock. Finally, ValuEngine upgraded shares of Orrstown Financial Services from a sell rating to a hold rating in a report on Friday, May 3rd. One research analyst has rated the stock with a sell rating, two have issued a hold rating and three have assigned a buy rating to the stock. The stock presently has a consensus rating of Hold and an average price target of $25.10.

Shares of NASDAQ ORRF opened at $21.71 on Friday. Orrstown Financial Services has a 1 year low of $17.30 and a 1 year high of $27.00. The stock’s 50 day moving average price is $21.28. The firm has a market capitalization of $208.13 million, a price-to-earnings ratio of 11.99 and a beta of 0.60. The company has a debt-to-equity ratio of 0.75, a quick ratio of 0.81 and a current ratio of 0.81.

Orrstown Financial Services (NASDAQ:ORRF) last announced its quarterly earnings results on Wednesday, April 24th. The bank reported $0.41 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.39 by $0.02. The company had revenue of $19.92 million for the quarter, compared to analyst estimates of $19.65 million. Orrstown Financial Services had a net margin of 13.42% and a return on equity of 9.45%. Analysts anticipate that Orrstown Financial Services will post 1.69 EPS for the current fiscal year.

The business also recently declared a dividend, which will be paid on Friday, July 5th. Shareholders of record on Tuesday, April 30th will be issued a $0.15 dividend. The ex-dividend date is Monday, April 29th. This is a positive change from Orrstown Financial Services’s previous dividend of $0.07. Orrstown Financial Services’s dividend payout ratio (DPR) is 33.15%.

Several institutional investors and hedge funds have recently made changes to their positions in ORRF. BNP Paribas Arbitrage SA boosted its holdings in shares of Orrstown Financial Services by 517.6% in the 1st quarter. BNP Paribas Arbitrage SA now owns 1,575 shares of the bank’s stock valued at $29,000 after purchasing an additional 1,320 shares during the last quarter. Bank of America Corp DE increased its stake in Orrstown Financial Services by 20.5% during the 4th quarter. Bank of America Corp DE now owns 6,909 shares of the bank’s stock worth $127,000 after buying an additional 1,177 shares during the period. O Shaughnessy Asset Management LLC increased its stake in Orrstown Financial Services by 39.1% during the 4th quarter. O Shaughnessy Asset Management LLC now owns 7,853 shares of the bank’s stock worth $143,000 after buying an additional 2,207 shares during the period. Rhumbline Advisers purchased a new stake in Orrstown Financial Services during the 4th quarter worth $189,000. Finally, Globeflex Capital L P purchased a new stake in Orrstown Financial Services during the 4th quarter worth $220,000. Institutional investors own 39.77% of the company’s stock.

About Orrstown Financial Services

Orrstown Financial Services, Inc operates as the holding company for Orrstown Bank that provides commercial banking and trust services in the United States. The company accepts various deposits, including checking, savings, time, demand, and money market deposits. It also offers commercial loans, such as commercial real estate, equipment, working capital, and other commercial purpose loans; consumer loans comprising home equity and other consumer loans, as well as home equity lines of credit; residential mortgage loans; agribusiness loans; acquisition and development loans; municipal loans; and installment and other loans.

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