Taking a look at Brookline Bancorp, Inc. (NASDAQ:BRKL)’s valuation level, we can focus on several ratios. One of the quickest ways to determine the projected value of a stock is the price to earnings growth, or PEG ratio.
This formula was popularized by Peter Lynch and according to his calculations, a stock which is fairly valued will have a price to earnings ratio equal to its rate of growth. Simply put, a stock with a PEG ratio of 1 would be considered fairly valued. A stock with a ratio of under 1.0 would be undervalued and a stock with a PEG over 1.0 would be considered over valued. Brookline Bancorp, Inc. currently has a PEG ratio of 3.58.Most importantly investors want to know where the stock is headed from here. In order to get a sense of Wall Street sentiment, we can look to equity research analyst estimates. On a one to five ratings scale where 1.0 indicates a Strong Buy, 2.0 indicates a Buy, 3.0 a Hold, 4.0 a Sell and 5.0 a Stong Sell. Brookline Bancorp, Inc. (NASDAQ:BRKL) currently has an average analyst recommendation of 2.20 according to analysts. This is the average number based on the total brokerage firms taken into consideration by Beta Systems Research. The same analysts have a future one-year price target of $16.70 on the shares.
Technical Indicators
In addition to sell-side rational, we can also take a look at some technical indicators. The stock is currently 3.23% away from its 50-day simple moving average and 14.46% away from the 200 day average. Based on a recent trade, the shares are -8.06% away from the 52-week high and 56.62% from the 52-week low. The RSI (Relative Strength Index), which shows price strength by comparing upward and downward close to close movements. An RSI approaching 70 is typically deemed to be nearing overbought status and could be ripe for a pullback. Alternatively an RSI nearing 30 indicates that the stock could be getting oversold and might be considered undervalued. The RSI for Brookline Bancorp, Inc.(NASDAQ:BRKL) currently stands at 60.42.
Performance
Brookline Bancorp, Inc. has posted trailing 12 months earnings of $0.74 per share. The company has seen a change of 4.90% earnings per share this year. Analysts are predicting 19.22% for the company next year. The firm is yielding 0.80% return on assets and 7.60% return on equity.
About Brookline Bancorp, Inc.
Brookline Bancorp, Inc. operates as a multi-bank holding company for Brookline Bank and its subsidiaries; Bank Rhode Island and its subsidiaries; First Ipswich Bank and its subsidiaries, and Brookline Securities Corp. As a commercially-focused financial institution with approximately 50 banking offices in greater Boston, the north shore of Massachusetts and Rhode Island, the Company offers commercial, business and retail banking services, including cash management products, online banking services, consumer and residential loans and investment services in central New England. The Company’s activities include acceptance of commercial; municipal and retail deposits; origination of mortgage loans on commercial and residential real estate located principally in Massachusetts and Rhode Island; origination of commercial loans and leases to small- and mid-sized businesses; investment in debt and equity securities, and the offering of cash management and investment advisory services.
