Alerus (ALRS) Surges 6.6%: Is This an Indication of Further Gains?

·2-min read

Alerus (ALRS) shares rallied 6.6% in the last trading session to close at $30.71. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 4% loss over the past four weeks.

Alerus extended its rally for the second consequent day. The bank announced a 6.7% hike in its quarterly dividend. The cash dividend of 16 cents per share will be paid out on July 9 to shareholders of record as of Jun 18, 2021. Earlier, in February, it had authorized a repurchase program of 770 million shares. Thus, the company’s efforts to enhance shareholder value through efficient capital deployments mostly drove the stock.

Price and Consensus

Price Consensus Chart for ALRS
Price Consensus Chart for ALRS

This company is expected to post quarterly earnings of $0.56 per share in its upcoming report, which represents a year-over-year change of -13.9%. Revenues are expected to be $55.3 million, down 5.2% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Alerus, the consensus EPS estimate for the quarter has been revised 19.1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on ALRS going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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