Stock Fundamental Analysis on Eagle Bancorp Inc (NASDAQ:EGBN)

Eagle Bancorp Inc (NASDAQ:EGBN) (Trend analysis) is a company worth to look into from a fundamental point of view. Indeed the company has a return on equity of 10.6% compared to 9.6% for the Financial sector. You can also note that earnings per share (EPS) has grown by 32.8% on average for the last 5 years, indicative of consistent growth in earnings.

The price-earnings ratio of Eagle Bancorp Inc (NASDAQ:EGBN) stands at 21.38, which is higher than the sector average of 17.9. An explanation of the higher P/E ratio is that earnings per share growth of the company is higher than the sector 5-year average growth of 6.3%.

Also it is interesting to look into the ratio of debt to equity ratio to check if the company is not too much reliant on the outside funding to finance its growth. Eagle Bancorp Inc (EGBN) has a debt to equity ratio of 35% which is a reasonable figure and is below the Financial sector sector average of 182.5%.

EGBN has a Market Cap of $1.5 billion. The company’s stock year-to-date performance is in positive territory, at 26.44%. Eagle Bancorp Inc (EGBN) reported last quarter earnings on April 22. The Financial Services company announced earnings per share of $0.61 against a consensus Street estimate of $0.52, beating the average estimate by $0.09. This corresponds to an increase of $0.05 compared to the same quarter of the previous fiscal year.

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There are currently six analysts that cover Eagle Bancorp Inc stock. Of those six, four have a Buy rating, two have a Hold rating. On a consensus basis this yields to an Overweight rating. The consensus target price stands at $43.83.

A recent analyst activity consisted of Sandler O’Neill downgrading their Buy rating to Hold on June 26. On the date of report, the stock closed at $44.91.

Keefe Bruyette & Woods reiterated their Outperform stance on March 17, and increased their price target on EGBN stock from $38 to $41. This corresponds to a 8.71% downside from the last closing price. On the date of report, the stock closed at $37.77.

Eagle Bancorp, Inc. is the holding company for EagleBank. The Bank provides real estate, commercial, and consumer lending, as well as traditional demand deposits and savings products to customers primarily in Montgomery County, Maryland.

Stock Fundamental Analysis on Eagle Bancorp Inc (NASDAQ:EGBN) was last modified: June 28th, 2015 by Donna Crepeau