Maxim Group Maintains Their Hold Rating on Westamerica Bancorporation

By Ryan Adsit

In a report released today, Michael Diana from Maxim Group maintained a Hold rating on Westamerica Bancorporation (NASDAQ: WABC). The company’s shares opened today at $60.82.

Diana said:

“WABC reported 4Q17 EPS of $0.16, which included four non-recurring items (a DTA writedown, a low-income housing LP writedown, a loss contingency, and securities gains) which reduced EPS by a net $0.42. WABC’s core performance metrics were, as usual, very strong. WABC’s deposit franchise remained its greatest strength. However, lack of loan growth remains WABC’s greatest challenge, in our view, in spite of period-end loans growing slightly from 3Q17. We are raising our 2018 EPS estimate (which includes stabilization of loan balances) to $2.65, from $2.30, mainly based on a lower tax rate.”

According to TipRanks.com, Diana is a 4-star analyst with an average return of 7.0% and a 64.3% success rate. Diana covers the Financial sector, focusing on stocks such as Wheeler Real Estate ate Investment Trust Inc, Oaktree Specialty Lending Corporation, and First Savings Financial Group.

Westamerica Bancorporation has an analyst consensus of Moderate Sell, with a price target consensus of $52.67.

Based on Westamerica Bancorporation’s latest earnings report for the quarter ending December 31, the company posted quarterly revenue of $54.5 million and quarterly net profit of $4.16 million. In comparison, last year the company earned revenue of $44.75 million and had a net profit of $14.45 million.

Based on the recent corporate insider activity of 23 insiders, corporate insider sentiment is negative on the stock. Most recently, in November 2017, Dennis Hansen, the SVP of WABC sold 20,000 shares for a total of $1,162,600.

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Westamerica Bancorp operates as a bank holding company. It provides range of banking services to individual and corporate customers in Northern and Central California through its subsidiary bank, Westamerica Bank. The company was founded in 1972 and is headquartered in San Rafael, CA.