Arrow Financial Co. Declares Dividend Increase of $0.28 Per Share

Arrow Financial Co. (NASDAQ:AROW) has announced a dividend increase, declaring a payment of $0.28 per share. This declaration was made on Saturday, February 1st, and is a welcome update for shareholders.

Shareholders who are on record by Tuesday, February 11th will receive this dividend payment on Monday, February 24th. The dividend yield associated with this increase stands at 4.21%. It's important to note that the ex-dividend date for this distribution is set for Monday, February 10th. The new amount represents an increase from the previous dividend, which was $0.25 per share.

Dividend Growth and Financial Health

Arrow Financial has shown a pattern of growth in its dividends over the past few years, averaging an increase of 4.4% annually. The company maintains a payout ratio of 37.8%, suggesting its dividends are well-supported by its earnings. Analysts project that Arrow Financial will earn approximately $2.70 per share in the coming year, allowing it to comfortably cover the total annual dividend of $1.12, which would place the future payout ratio at an estimated 41.5%.

Stock Performance Overview

Currently, AROW shares opened at $26.61. The company’s stock has experienced a 50-day moving average of $29.23 and a 200-day moving average of $29.49. Arrow Financial boasts a market capitalization of $445.45 million, a price-to-earnings ratio of 13.58, and a beta of 0.77. The financial standing of the company includes a quick ratio of 0.93, a current ratio of 0.93, and a low debt-to-equity ratio of 0.06. Over the past year, the stock has fluctuated between a low of $21.50 and a high of $34.63.

Earnings Report Insights

In the most recent quarter ending January 30th, Arrow Financial reported earnings per share (EPS) of $0.47, which was below the consensus estimate of $0.59, a miss of $0.12. The company had a net margin of 15.00% and delivered a return on equity of 8.59%. Looking ahead, analysts anticipate that the company will report an EPS of 2.11 for the current year.

Insider Activity

Recent insider trading activity indicates that Director Raymond F. O'Conor sold 2,000 shares on December 2nd for approximately $65,380, at an average price of $32.69. After this transaction, he continues to own 37,859 shares, valued at roughly $1.24 million. This sale reduced his stake in the firm by 5.02%. Additionally, over the past 90 days, insiders have sold a combined total of 6,000 shares worth $180,080, with insiders holding about 3.55% of the company’s total stock.

Analyst Ratings Update

Arrow Financial stock (AROW) has been included in several recent research reports. Notably, Hovde Group has lowered its target price for the stock from $34.50 to $32.00 while rating it as "market perform". Piper Sandler also began coverage of Arrow Financial with a "neutral" rating and a $32.00 price target.

Company Overview

Arrow Financial Corporation is a bank holding company that provides a variety of financial products and services, including both commercial and consumer banking. Their deposit options encompass various accounts, while their lending services include commercial loans as well as real estate financing solutions.

Dividend, Increase, Financial