Investor Confidence is Falling for Eagle Bancorp Montana Inc. (NASDAQ:EBMT)

Investor Confidence is Falling for Eagle Bancorp Montana Inc. (NASDAQ:EBMT)


The Eagle Bancorp Montana Inc. (EBMT) shares are trading at lower $16.74 and the avg recommendation for the stock is Strong Buy. The current analyst price target stands at $20.33.

To add more color to this target, the company’s high over the last year is $22.98 and the low is $11.74. Over the last 52 weeks, EBMT is down -27.15% while the S&P 500 is down -2.38%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, EBMT reported a profit of $10.48 million. Eagle Bancorp Montana Inc. also saw revenues increase to $12.63 million. In addition, EBMT has free cash flow of -$7.91 million as of 03-2020.

EBMT booked profit margins of 28.40%, its Return on Equity (ROE) is 11.10%, and its Return on Assets is 1.30%. All told, it is clear that, EBMT needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. EBMT has a short ratio of 0.78 and outstanding shares of 6.82M.

Company Outlook

EBMT has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.12 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 2.09. Investors should also keep an eye on sector updates as EBMT has historically followed its peers on positive news.

All told, Eagle Bancorp Montana Inc. EBMT has strung together solid data and demonstrated underlying fundamentals. At its current valuation, EBMT represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Eagle Bancorp Montana Inc. EBMT is now commanding a market cap of 121.20M and a float of 6.27M. EBMT is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of EBMT stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in EBMT, either long or short, and we have not been compensated for this article.