US LNG exports surge but will buyers in China turn up?
Tuesday, Piper Sandler analysts adjusted the price target for Chemung Financial (NASDAQ: NASDAQ:CHMG) stock, raising it to $54 from $50, while keeping a Neutral rating on the company’s shares. Currently trading at $42.14 with a market capitalization of $201.8 million, the stock has caught analysts’ attention, with InvestingPro data showing two analysts revising their earnings estimates upward for the upcoming period. The revision follows Chemung Financial’s recent earnings report, which showed a core earnings per share (EPS) that surpassed expectations, primarily due to lower than anticipated operating expenses.
The company’s performance included a continuation of mid-single-digit loan growth, attributed to commercial real estate (CRE) activity, and a seasonal increase in deposit balances. The net interest margin (NIM) experienced a slight rise of 4 basis points, reaching 2.96%, which was largely anticipated by market analysts. Meanwhile, net interest income (NII) remained relatively unchanged compared to the last quarter due to fewer days in the period and subdued total average earning assets (AEA) growth. Notably, the company maintains a strong dividend track record, having paid dividends for 52 consecutive years, with a current yield of 3.04%.
In terms of credit quality, the report was positive, with net charge-offs (NCOs) decreasing and nonperforming assets (NPAs) showing a marginal uptick. The analysts highlighted that the company’s capital levels are robust and have seen growth since the last quarter.
Piper Sandler’s commentary on the earnings report emphasized the role of controlled expenses in the company’s better-than-expected results. "Expense Driven Beat; Increasing Ests Modestly; CHMG reported a core EPS beat primarily driven by better than expected operating expense. Given the beat we are increasing our estimates modestly," said the analyst from Piper Sandler.
The firm’s analysis suggests that while the financial results were solid, the outlook remains cautiously optimistic, reflected in the maintained Neutral rating despite the increased price target. According to InvestingPro analysis, the stock appears fairly valued, trading at a P/E ratio of 8.97x. For deeper insights into Chemung Financial’s valuation metrics and additional ProTips, investors can access comprehensive analysis through an InvestingPro subscription.
In other recent news, Chemung Financial Corporation announced a dividend increase, raising its quarterly cash dividend to $0.32 per share. This marks a 3.2% increase from the previous payout, reflecting the company’s robust financial performance. Shareholders on record by March 18, 2025, will be eligible for the increased dividend, which is scheduled for payment on April 1, 2025. The company attributes this decision to its strong financial health, as stated by President and CEO Anders M. Tomson. Additionally, Chemung Financial revealed that Executive Vice President Thomas W. Wirth plans to retire in the third quarter of 2025 due to health reasons. Wirth, who has been with the bank since 1987, has played a significant role in the company’s growth. The company is actively seeking a successor and Wirth will assist with the transition process. These developments were disclosed in recent SEC filings, ensuring transparency for investors.
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