Ameris Bancorp Faces Downgrade from StockNews.com

On Wednesday morning, Ameris Bancorp (NASDAQ:ABCB) saw its stock rating downgraded from a hold to a sell by StockNews.com in a recent research note.

In addition to this downgrade, several other analysts have released their evaluations of Ameris Bancorp. For instance, Truist Financial recently increased its target price for the company from $69.00 to $73.00 and categorized the stock as a "buy" in a report dated September 20. Similarly, Stephens raised their price target for Ameris Bancorp from $52.00 to $64.00, assigning it an "equal weight" rating in a report issued on July 29. On the same day, Keefe, Bruyette & Woods elevated their target price from $60.00 to $65.00 while giving the stock an "outperform" rating. Additionally, DA Davidson raised their price target from $61.00 to $76.00, also designating the stock as a "buy". Overall, one analyst has given Ameris Bancorp a sell rating, one has maintained a hold rating, and four analysts have assigned buy ratings, which leads to a consensus rating of "Moderate Buy" with an average target price of about $67.00 according to MarketBeat.

Current Stock Performance

On the day of the downgrade, shares of Ameris Bancorp opened at $61.25. The company maintains a debt-to-equity ratio of 0.30, with a quick ratio of 1.03 and a current ratio of 1.05. Over the last 50 days, the stock has averaged $61.54, while the 200-day average stands at $54.69. Ameris Bancorp's stock has fluctuated between a 52-week low of $34.76 and a high of $66.51. The firm's current market capitalization is $4.23 billion, with a price-to-earnings ratio of 14.90 and a beta of 1.01.

Quarterly Earnings Results

Ameris Bancorp recently announced its quarterly earnings on October 24, revealing earnings per share (EPS) of $1.38, surpassing the consensus estimate of $1.25 by $0.13. The company's return on equity was recorded at 8.97%, alongside a net margin of 19.28%. It reported revenues of $424.86 million for the quarter, significantly exceeding analysts’ expectations of $290.60 million. Last year, during the same quarter, the firm reported an EPS of $1.16. Analysts are forecasting that Ameris Bancorp will achieve earnings per share of approximately 4.82 for the current fiscal year.

Dividend Announcement

Ameris Bancorp has also declared a quarterly dividend, which was disbursed on October 7. Shareholders on record as of September 30 received a $0.15 dividend, totaling an annualized dividend of $0.60. This equates to a dividend yield of 0.98%. The company’s payout ratio currently sits at 14.60%.

Changes in Institutional Holdings

Recently, several institutional investors have adjusted their positions in Ameris Bancorp. For instance, Vanguard Group Inc. raised its stake by 0.4% during the fourth quarter and now holds 7,467,880 shares, valued at approximately $396.17 million after acquiring an additional 33,386 shares. Wealth Enhancement Advisory Services LLC increased its holdings by 130.7% in the first quarter, owning now 12,169 shares worth around $589,000 after purchasing an additional 6,895 shares. Congress Wealth Management LLC DE also boosted its position by 19.5% in the first quarter, now holding 109,772 shares valued at about $5.31 million. Allspring Global Investments Holdings LLC grew its stake by 75% during the same period, owning 416,557 shares worth approximately $20.15 million. Lastly, Norden Group LLC acquired a new investment in Ameris Bancorp valued at about $278,000 during the first quarter. Collectively, institutional investors and hedge funds own approximately 91.64% of the company’s stock.

Overview of Ameris Bancorp

Ameris Bancorp serves as the bank holding company for Ameris Bank, providing a comprehensive range of banking services to both retail and commercial customers. The bank operates through five divisions: Banking Division, Retail Mortgage Division, Warehouse Lending Division, SBA Division, and Premium Finance Division. It offers various financial products, including commercial and retail checking accounts, interest-bearing savings accounts, money market accounts, individual retirement accounts, and certificates of deposit.

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