Wintrust Financial (NASDAQ:WTFC) Shares Gap Down Following Weak Earnings

Wintrust Financial Co. (NASDAQ:WTFC) shares gapped down before the market opened on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $112.29, but opened at $106.18. Wintrust Financial shares last traded at $111.97, with a volume of 65,776 shares changing hands.

The bank reported $2.47 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.50 by ($0.03). The company had revenue of $615.73 million for the quarter, compared to analyst estimates of $623.45 million. Wintrust Financial had a return on equity of 12.71% and a net margin of 17.02%. The company’s revenue was up 7.1% on a year-over-year basis. During the same quarter last year, the business earned $2.53 earnings per share.

Wintrust Financial Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, August 22nd. Investors of record on Thursday, August 8th were given a dividend of $0.45 per share. The ex-dividend date of this dividend was Thursday, August 8th. This represents a $1.80 annualized dividend and a yield of 1.60%. Wintrust Financial’s dividend payout ratio is 18.61%.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on WTFC shares. Stephens restated an “overweight” rating and issued a $115.00 target price on shares of Wintrust Financial in a research report on Thursday, July 18th. Royal Bank of Canada raised their target price on Wintrust Financial from $116.00 to $117.00 and gave the company an “outperform” rating in a report on Tuesday, July 9th. Keefe, Bruyette & Woods cut Wintrust Financial from an “outperform” rating to a “market perform” rating and boosted their price target for the stock from $110.00 to $115.00 in a report on Friday, July 19th. Piper Sandler raised their price objective on Wintrust Financial from $113.00 to $125.00 and gave the company an “overweight” rating in a research note on Friday, July 19th. Finally, DA Davidson increased their target price on shares of Wintrust Financial from $120.00 to $125.00 and gave the stock a “buy” rating in a report on Friday, July 19th. Three research analysts have rated the stock with a hold rating, ten have given a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $118.23.

Institutional Investors Weigh In On Wintrust Financial

Several large investors have recently modified their holdings of the company. Vanguard Group Inc. grew its stake in shares of Wintrust Financial by 3.9% in the 1st quarter. Vanguard Group Inc. now owns 6,452,753 shares of the bank’s stock valued at $673,603,000 after buying an additional 244,168 shares during the period. Allspring Global Investments Holdings LLC lifted its holdings in shares of Wintrust Financial by 157.6% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 190,416 shares of the bank’s stock worth $19,878,000 after purchasing an additional 116,503 shares in the last quarter. Capital International Investors grew its position in Wintrust Financial by 4.6% in the 1st quarter. Capital International Investors now owns 1,638,085 shares of the bank’s stock valued at $171,000,000 after purchasing an additional 72,082 shares during the period. Choreo LLC bought a new stake in Wintrust Financial during the 2nd quarter valued at $1,115,000. Finally, Raymond James & Associates raised its holdings in Wintrust Financial by 2.7% during the second quarter. Raymond James & Associates now owns 207,944 shares of the bank’s stock worth $20,495,000 after buying an additional 5,563 shares during the last quarter. 93.48% of the stock is currently owned by institutional investors and hedge funds.

Wintrust Financial Price Performance

The company has a debt-to-equity ratio of 0.85, a current ratio of 0.99 and a quick ratio of 0.99. The business’s fifty day moving average price is $106.20 and its 200-day moving average price is $101.88. The stock has a market capitalization of $6.95 billion, a price-to-earnings ratio of 11.75 and a beta of 1.16.

About Wintrust Financial

Wintrust Financial Corporation operates as a financial holding company. It operates in three segments: Community Banking, Specialty Finance, and Wealth Management. The Community Banking segment offers non-interest bearing deposits, non-brokered interest-bearing transaction accounts, and savings and domestic time deposits; home equity, consumer, and real estate loans; safe deposit facilities; and automatic teller machine (ATM), online and mobile banking, and other services.