Shares of Pathfinder Bancorp, Inc. (NASDAQ:PBHC) fell below their 200-day moving average during trading on Thursday, reaching a low of $12.89 before closing at $12.90. This decline marks a significant shift for the company, which has been under scrutiny from analysts and investors alike.
Analysts Downgrade Rating
In a recent report, Weiss Ratings downgraded Pathfinder Bancorp from a “hold (c)” rating to a “sell (d)” rating. This shift reflects growing concerns about the bank’s financial performance. According to data from MarketBeat.com, Pathfinder Bancorp currently holds a consensus rating of “Sell,” with one equity analyst explicitly rating the stock as a Sell.
The stock’s recent performance has been troubling for investors. Trading volume on Thursday was recorded at 3,226 shares, indicating a lack of confidence in the stock’s future trajectory.
Quarterly Earnings and Dividend Announcement
Pathfinder Bancorp’s financial results for the fourth quarter, released on January 29, 2024, revealed a challenging landscape. The bank reported an earnings per share (EPS) of ($1.11), reflecting a negative return on equity of 2.73% and a negative net margin of 4.16%. Revenue for the quarter stood at $12.21 million, highlighting the financial hurdles the institution is facing.
In a bid to maintain investor confidence, Pathfinder Bancorp announced a quarterly dividend of $0.10, which was paid on February 6, 2024. Shareholders of record on January 16, 2024, received this dividend, which equates to an annualized yield of 3.1%. However, the company’s dividend payout ratio is currently at -66.67%, indicating that its dividend payments exceed its earnings.
Institutional Investment Activity
Recent changes in institutional ownership have also impacted Pathfinder Bancorp’s stock performance. Raymond James Financial Inc. acquired a new stake worth approximately $52,000 in the second quarter. Meanwhile, Osaic Holdings Inc. increased its position by 102.1%, now holding 33,803 shares valued at $537,000. Additionally, Fourthstone LLC purchased a stake worth $1.23 million during the same period.
As of now, institutional investors and hedge funds own 26.73% of Pathfinder Bancorp’s stock, reflecting a mix of confidence and caution among larger investment entities.
Pathfinder Bancorp, headquartered in northeastern Pennsylvania, operates primarily through its subsidiary, Pathfinder Bank. The bank offers a variety of banking solutions, including checking and savings accounts, commercial and consumer loans, and retirement accounts. Despite the recent challenges, the bank continues to serve individuals, small businesses, and community organizations throughout its local market.
Investors will be watching closely to see how Pathfinder Bancorp navigates these turbulent financial waters in the coming months.
