Daily Stock Analysis: Penns Woods Bancorp

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Penns Woods Bancorp Inc. bears the ticker symbol PWOD, and this is my first mention of Penns Woods for this new Viking Portfolio, nor for any of my previous seven dog of the week folios.

Penns Woods Bancorp Inc. is the bank holding company for Jersey Shore State Bank and Luzerne Bank. The banks serve customers in North Central and North Eastern Pennsylvania through their retail banking, commercial banking, mortgage services, and financial services divisions.

The Banks are engaged in commercial and retail banking which includes the acceptance of time, savings, and demand deposits, the funding of commercial, consumer, and mortgage loans, and safe deposit services.

Utilizing a branch office network, ATMs, Internet, and telephone banking delivery channels, the Banks deliver products and services to Clinton, Lycoming, Centre, Montour, Union, Blair, and Luzerne Counties, Pennsylvania.

The company was founded in 1907 and is headquartered in Williamsport, Pennsylvania.

Three key data points gauge PWOD or any dividend-paying firm:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.
 

PWOD Price

Penns Woods Bancorp Inc.'s price per share was $26.85 at Thursday’s market close. In the past year, PWOD's share price increased by $2.46, or about 10%.

If PWOD stock trades in the range of $20.00 to $30.00 this next year, its recent $26.85 share price might reach $29.00 by next year. That upside estimate of $2.15 is $0.45 less than the past three year’s price upside.
 

PWOD Dividends

Penns Woods Bancorp Inc.'s most recent quarterly dividend of $0.32 casts a forward annual yield of 4.77%.
 

PWOD Returns

Adding the $1.28 annual estimated PWOD dividend to my one-year price upside estimate of $2.15 reveals a $3.43 potential gross gain estimate per share.

At Thursday’s $26.85 closing price, a little under $1000 would buy 37 shares.

A $10 broker fee (if charged), paid half at purchase and half at the sale, might cost us about $0.27 per share.

Subtracting that maybe $0.27 brokerage cost from my estimated $3.43 gross gain makes a net gain of $3.16 X 37 shares = $116.92 for an 11.7% net gain including the 4.77% annual dividend yield.

In the next year, our $1K investment in shares of Penns Woods Bancorp Inc could generate $47.70 in cash dividends. Furthermore, a single share of PWOD at Thursday’s $26.85 price is nearly 2 times less than the estimated annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a proper time to buy Penns Woods Bancorp Inc. shares, based on their dividends for 2023. The current dividend from $1K invested is 1.78 times higher than the PWOD single share price. Consider yourself alerted.

Now is the time to consider PWOD shares.

All of the estimates above are speculation based on the past history of investment in shares of Penns Woods Bancorp Inc. Only time and money invested in this stock will determine its future market value.


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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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