Piper Sandler has a Neutral rating on OceanFirst Financial Corp (NASDAQ:OCFC) with a price target of $17.00. In Q3 2024, OceanFirst Financial reported earnings per share (EPS) of $0.42, with core earnings at $0.39, beating estimates slightly.
The earnings boost was due to a lower provision for credit losses, bettering expectations. Though the company faced some one-time costs from acquisitions, its net interest margin dipped slightly to 2.67%, while net interest income remained steady.
Credit quality improved; nonperforming assets decreased after selling a troubled commercial real estate loan, and net recoveries indicated a strong credit environment.
Despite these costs, OceanFirst’s Q3 performance supports its Neutral rating. The unchanged $17.00 price target reflects this outlook.
Additionally, OceanFirst Bank has pledged $14 million to a loan subsidy fund to address redlining allegations related to unfair lending practices against minority communities. This aims to improve access to credit in those areas.
DA Davidson also maintains a Neutral rating for OceanFirst but has raised its price target due to rising funding costs that affect net interest margins and growth.
In its Q2 results, OceanFirst reported a GAAP diluted EPS of $0.40, net interest income of $82 million, a $0.20 quarterly cash dividend, and a common equity Tier 1 capital ratio of 11.2%. The bank plans to grow its commercial and industrial business despite a minor dip in deposits.
InvestingPro Insights
OCFC shows strong performance in Q3 2024. Its P/E ratio of 11.68 suggests it might be undervalued compared to peers. The stock has a 4.11% dividend yield and has maintained dividend payments for 28 years, reflecting financial stability.
OCFC has also seen a 36.78% price increase over the last six months, indicating strong market confidence. For more detailed analysis, InvestingPro offers additional insights into OCFC’s financial health.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
`
