2024-02-10 01:36:17 ET
Summary
- Washington Trust Bancorp's shares have achieved a 16.1% upside since October 2023, falling a bit short of the S&P 500.
- The bank experienced a decline in deposits in the final quarter of 2023, but loans and securities value increased.
- The institution's earnings and assets are average compared to similar companies, suggesting that shares are undervalued and warranting a 'buy' rating when factoring in current valuation.
Achieving a return in the market that essentially doubles what the market achieves is no easy feat. This is especially true when the market is skyrocketing. But every so often, you will be fortunate enough to stumble across an opportunity that does just that. One example that I could point to from last year involves a fairly small bank with a market capitalization today of only about $431.2 million. That happens to be Washington Trust Bancorp (WASH). Near the end of October of 2023, I found myself interested in the institution. Shares had fallen about 10% after management reported financial results for the third quarter of the 2023 fiscal year. And yet, there were some bright spots for shareholders to enjoy. That ultimately led me to rating the institution a 'buy' to reflect my view that the stock should outperform the broader market for the foreseeable future....
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Reassessing Washington Trust Bancorp