On September 26, 2023, the news broke that Hennessy Advisors Inc. had reduced its stake in Wintrust Financial Co. by 27.1% during the second quarter of the year. According to their disclosure with the Securities and Exchange Commission (SEC), the fund previously owned 35,000 shares of the bank’s stock but sold off 13,000 shares during this period. At the close of the quarter, Hennessy Advisors Inc.’s stake in Wintrust Financial was worth $2,542,000, representing 0.06% of the company’s total value.
This announcement by Hennessy Advisors Inc. sheds light on the recent activities surrounding Wintrust Financial Co., a publicly traded financial institution listed on NASDAQ under ticker symbol WTFC. The reduction in Hennessy Advisors’ stake indicates a change in their investment strategy or outlook for Wintrust Financial.
In addition to this development, Wintrust Financial Co. disclosed that it recently declared a quarterly dividend payment which was distributed on Thursday, August 24th. Shareholders of record as of Thursday, August 10th were eligible to receive a $0.40 dividend per share held. The ex-dividend date for this payout occurred on Wednesday, August 9th.
With an annualized dividend amounting to $1.60 per share and a dividend yield currently standing at 2.08%, Wintrust Financial Co.’s dividend payout ratio stands at approximately 16.63%. This represents the portion of earnings that is paid out to shareholders in dividends.
Investors and analysts may find these recent developments significant when evaluating their investment decisions related to Wintrust Financial Co.’s stock performance and potential future returns.
As always when considering investing or trading stocks such as WTFC (Wintrust Financial Co.), it is recommended that individuals conduct thorough research and analysis using various resources available in order to make informed decisions based on their own risk appetite and investment objectives.
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Institutional Investors Increase Stakes in Wintrust Financial amid Positive Outlook and Strong Performance
In recent months, several hedge funds and institutional investors have made significant changes to their stakes in Wintrust Financial (NASDAQ:WTFC), a leading financial services company. One such investor, Northwestern Mutual Wealth Management Co., increased its holdings by 4.3% during the fourth quarter, adding an additional 123 shares to its portfolio. This brings their total ownership to 3,015 shares valued at $255,000.
Another notable investor, Rockefeller Capital Management L.P., raised its stake by 6.6% in the same period, acquiring 126 additional shares of Wintrust Financial stock. With a current ownership of 2,048 shares worth $172,000, Rockefeller Capital Management solidifies its position as a key institutional investor in the company.
Moreover, Advisor Group Holdings Inc. saw a growth of 3.4% in its holdings during the fourth quarter as well. The company now owns 4,135 shares valued at $351,000 after acquiring an additional 135 shares.
Quadrant Capital Group LLC joined these investors by increasing its position in Wintrust Financial by 15.8%. This addition of 159 shares brings their total ownership to 1,167 shares valued at $99,000.
Lastly, Quarry LP experienced significant expansion with a staggering increase of 36.1% in their holdings during the first quarter. With an additional acquisition of 176 shares worth $48,000 in value, Quarry LP currently owns 663 shares of Wintrust Financial.
When considering these investments collectively among institutional investors and hedge funds alike, it is evident that there exists considerable confidence and interest surrounding Wintrust Financial’s prospects for growth and profitability.
The sentiment extends beyond mere investment activity as equities research analysts have also weighed in on Wintrust Financial’s performance outlook. Piper Sandler raised their price target from $92.00 to $101.00 based on their analysis conducted on July 21st. Similarly, DA Davidson, another reputable research firm, increased their price target from $82.00 to $96.00.
Furthermore, Stephens reiterated an “overweight” rating and set a price target of $90.00 for Wintrust Financial on July 20th. StockNews.com also conducted its own coverage on the company, issuing a “hold” rating.
Wedbush, a leading research provider, had the most optimistic view among these analysts by boosting their price target from $86.00 to $95.00 and assigning an “outperform” rating to Wintrust Financial.
Summarizing these ratings, one can conclude that out of the analysts surveyed by Bloomberg.com, a majority have expressed positive sentiments towards Wintrust Financial stock. In fact, eight analysts have assigned a buy rating to the shares while one has gone even further to designate it as a strong buy.
The current consensus among these equities research experts points towards potential growth for Wintrust Financial in the financial marketplace with an average target price of $94.60.
Despite this positive outlook, it is worth noting that on September 26th, 2023—the reference date for this article—Wintrust Financial (NASDAQ:WTFC) opened at $76.92. The company’s trading performance had recently seen fluctuations with a 50-day moving average price of $79.72 and a 200-day moving average price of $73.34.
Approximately valued at $4.71 billion with a price-to-earnings ratio of 8.00 and beta of 1.22—indicating a moderate level of volatility in comparison to the overall market—Wintrust Financial continues to navigate an evolving landscape within the financial services industry.
As part of its quarterly earnings report announced on July 20th, 2023, Wintrust Financial reported earnings per share (EPS) of $2.38 for the quarter. This figure met analysts’ consensus estimates precisely. Moreover, the company displayed a net margin of 22.24% along with a promising return on equity of 13.96%.
Impressively, Wintrust Financial generated revenue of $810.21 million during the quarter, surpassing analyst estimates that predicted $555.16 million for the same period.
Comparing these results to the company’s performance a year ago—when they posted earnings per share of $1.49—the growth and upward trajectory become undeniable.
Given all these factors, it is understandable why institutional investors and hedge funds are drawn to Wintrust Financial as they aim to capitalize on its potential and secure stable returns.
As we continue through 2023, market participants will closely monitor Wintrust Financial’s progress and how it navigates challenges and opportunities in an ever-evolving financial landscape.
