Arrow Financial Co. (NASDAQ:AROW) Announces Dividend Increase to $0.28 Per Share

Arrow Financial Co. (NASDAQ:AROW) has recently declared a dividend on Saturday, February 1st. Shareholders who are on record by Tuesday, February 11th will receive a dividend of $0.28 per share on Monday, February 24th. This increase indicates a dividend yield of 4.21%. The ex-dividend date is set for Monday, February 10th. This new dividend rate marks an increase from the previous dividend of $0.25.

In the last three years, Arrow Financial has raised its dividend at an average annual rate of 4.4%. With a payout ratio of 37.8%, the company's dividends are well-supported by its earnings. Analysts are forecasting that Arrow Financial will earn $2.70 per share in the upcoming year, suggesting that the company should continue to comfortably cover its annual dividend of $1.12, with an expected payout ratio of 41.5%.

Recent Stock Performance

As of Friday, AROW stock opened at $26.61. The company's fifty-day simple moving average stands at $29.23, while the 200-day simple moving average is $29.49. Arrow Financial has a market capitalization of $445.45 million, a price-to-earnings ratio of 13.58, and a beta of 0.77. Its quick ratio and current ratio both reflect a value of 0.93, with a very low debt-to-equity ratio of 0.06. Over the past year, the shares have fluctuated between a low of $21.50 and a high of $34.63.

Arrow Financial's most recent earnings report was released on January 30th, where the company reported earnings per share (EPS) of $0.47 for the quarter. This figure fell short of analyst estimates, which expected an EPS of $0.59 by $0.12. The company reported a net margin of 15.00% and a return on equity of 8.59%. For the current fiscal year, analysts predict an average EPS of 2.11.

Insider Trading Activity

In other news regarding Arrow Financial, Director Raymond F. O'Conor sold 2,000 shares of the stock on December 2nd at an average price of $32.69, resulting in a total of $65,380. Following this transaction, he retained ownership of 37,859 shares, which are valued at approximately $1,237,610.71. This sale was disclosed in a legal filing with the SEC. Notably, insiders have sold a total of 6,000 shares in the last 90 days, amounting to $180,080. Currently, company insiders hold around 3.55% of the total shares outstanding.

Analyst Ratings

There have been various updates regarding analyst ratings for Arrow Financial. On December 27th, Hovde Group reduced their target price from $34.50 to $32.00 while maintaining a "market perform" rating for the stock. Additionally, Piper Sandler has initiated coverage on Arrow Financial, assigning a "neutral" rating along with a $32.00 price target.

Company Overview

Arrow Financial Corporation functions as a bank holding company, providing various commercial and consumer banking solutions alongside financial products and services. Their deposit products encompass demand deposits, interest-bearing checking accounts, savings deposits, time deposits, and other related services. Their lending services include commercial loans, such as term loans and lines of credit, as well as commercial real estate loans aimed at financing property purchases, refinancing, expansions, and enhancements, alongside commercial construction and land development loans.

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