Short Interest in First National Co. (NASDAQ:FXNC) Declines By 88.3%

First National Co. (NASDAQ:FXNC) experienced a remarkable drop in short interest during October. By October 15th, the total short interest was 8,000 shares, which represents an impressive reduction of 88.3% from the 68,500 shares reported on September 30th. Currently, around 0.1% of the company's overall shares are sold short. Considering the average daily trading volume of 6,600 shares, the short-interest ratio stands at 1.2 days.

Stock Update:

Recent Analyst Ratings

Recently, various equity analysts have published their insights on First National. On October 8th, Hovde Group initiated coverage on the company by issuing an "outperform" rating along with a price target of $22.00 for the stock. Additionally, on August 1st, Janney Montgomery Scott upgraded their rating on First National from "neutral" to "buy," setting a target price of $21.00.

Current Stock Performance

On a recent trading day, shares of FXNC fell by 1.3%, which translates to a loss of $0.28, bringing the stock price to $20.72. The trading volume that day was 5,660 shares, slightly higher than the average volume of 5,438 shares. With a market capitalization of $130.06 million, First National has a price-to-earnings ratio of 14.69 and a beta of 0.52. The company’s financial ratios indicate a debt-to-equity ratio of 0.12, with both a current ratio and a quick ratio of 0.84. Over the past year, the stock has fluctuated between a low of $14.50 and a high of $21.75, with a fifty-day moving average of $18.06 and a 200-day average of $16.51.

First National recently announced its quarterly earnings on July 31st, where it reported earnings of $0.48 per share, surpassing the analyst consensus of $0.44 by $0.04. The company achieved a 7.29% return on equity with a net profit margin of 10.40%. For the quarter, it generated $14.18 million in revenue, exceeding analyst expectations of $13.90 million. According to projections, First National is expected to report earnings of 1.97 per share for the current fiscal year.

Dividend Announcement

On another note, First National recently declared a dividend. The company paid a $0.16 dividend to shareholders on record as of September 20th, with the ex-dividend date occurring on the same day. This results in a payout ratio of approximately 41.96%.

Hedge Fund Activity

In terms of investment firm involvement, Empowered Funds LLC has recently increased its stake in First National. During the first quarter, the firm raised its holdings by 7.9%, now owning 11,960 shares, which came after acquiring an additional 875 shares. This stake represents about 0.19% of First National, valued at approximately $194,000 according to their latest SEC filings. Hedge funds and institutional investors collectively hold 33.92% of the company’s stock.

Company Overview

First National Corporation operates as the parent company of First Bank, providing various commercial banking services tailored to small and medium-sized businesses, individuals, estates, local governmental bodies, and non-profit organizations in Virginia. Their offerings include a range of deposit products like checking accounts, savings accounts, money market accounts, individual retirement accounts, certificates of deposit, and treasury management solutions.

Conclusion

Considering the recent changes in short interest along with the stock's performance and analyst outlook, First National Co. presents an interesting opportunity for investors and stakeholders in the marketplace.

Stocks, Market, Investment