Strome Business Minute With Dr. Jeff Tanner

Towne Bank’s stock price has plummeted to well under twenty dollars per share, falling more percentage-wise than its peers to sixteen dollars and fifteen cents before climbing back to nearly eighteen dollars but well off its one year high of twenty nine dollars. Analysts are mixed on Towne’s future, with BidAskClub lowering from sell to strong sell, Zacks reiterating a sell rating, and Value Engine improving its rating to hold. With a consensus price target of nearly twenty eight dollars, you’d think there would be some buy recommendations, and indeed, the bank’s largest investors, BlackRock, State Street, and Geode Capital have increased their holdings during the first quarter. But April also saw an increase in shorting activity, meaning more investors thought the price would fall, in spite of an earnings report that beat estimates. To learn more, visit odu.edu/business. This Strome Business Minute is presented by the Strome College of Business at Old Dominion University.