Arrow Financial Corporation (AROW)
NASDAQ:AROW
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Arrow Financial
(NASDAQ:AROW)
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Rating:77Outperform
Price Target:
$43.00
▲(41.03% Upside)
Action:Reiterated
Date:06/11/26
The score is driven primarily by strengthening financial performance (improving profitability/cash generation and conservative leverage) and supportive technicals (price above key moving averages with positive momentum). Reasonable valuation (low-teens P/E with a ~3.1% yield) helps, while the pending merger adds upside potential but introduces execution risk.
Positive Factors
Conservative, improving leverage
Arrow’s materially lower leverage and steady equity growth create a durable capital buffer that reduces solvency and funding risk. A stronger capital base supports measured loan growth, maintains regulatory flexibility, underpins dividend capacity, and enables opportunistic M&A over the next several quarters.
Negative Factors
Earnings and margin volatility
Despite recent margin expansion, historical swings versus 2021–2022 show earnings are cyclical rather than steadily compounding. That volatility reduces multi‑quarter predictability, complicates capital allocation and makes returns sensitive to interest rate cycles, loan mix shifts and local market conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative, improving leverage
Arrow’s materially lower leverage and steady equity growth create a durable capital buffer that reduces solvency and funding risk. A stronger capital base supports measured loan growth, maintains regulatory flexibility, underpins dividend capacity, and enables opportunistic M&A over the next several quarters.
Read all positive factors
Arrow Financial (AROW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$658.85M
Dividend Yield3.59%
Average Volume (3M)69.60K
Price to Earnings (P/E)12.5
Beta (1Y)0.84
Revenue Growth8.85%
EPS Growth82.76%
CountryUS
Employees580
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)3.10
Shares Outstanding16,529,018
10 Day Avg. Volume64,578
30 Day Avg. Volume69,604
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)1.20
Price to Sales (P/S)2.14
P/FCF Ratio14.32
Enterprise Value/Market Cap0.92
Enterprise Value/Revenue2.46
Enterprise Value/Gross Profit3.60
Enterprise Value/Ebitda8.66
Forecast
1Y Price Target
$43.00Price Target Upside41.03% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)3.7
Revenue Forecast (FY)$209.10M
Arrow Financial Business Overview & Revenue Model
Company Description
Arrow Financial Corporation functions as a bank holding company, delivering a comprehensive suite of commercial and consumer banking services, alongside various financial products. Its core deposit offerings include conventional options like deman...
How the Company Makes Money
Arrow Financial primarily earns money through (1) net interest income and (2) noninterest (fee) income. Net interest income is generated by taking in deposits and other funding (for which the company pays interest and incurs funding costs) and inv...
Arrow Financial Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
84
Very Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 246.80M | 242.58M | 223.07M | 191.68M | 160.55M | 147.92M |
| Gross Profit | 168.35M | 158.32M | 134.63M | 130.57M | 144.44M | 142.45M |
| EBITDA | 70.06M | 60.81M | 42.72M | 44.24M | 70.46M | 72.23M |
| Net Income | 51.13M | 43.95M | 29.71M | 30.07M | 48.80M | 49.86M |
Balance Sheet | ||||||
| Total Assets | 4.52B | 4.45B | 4.31B | 4.17B | 3.97B | 4.03B |
| Cash, Cash Equivalents and Short-Term Investments | 29.10M | 29.13M | 617.66M | 640.30M | 638.15M | 1.02B |
| Total Debt | 34.11M | 29.19M | 33.60M | 71.57M | 106.92M | 70.17M |
| Total Liabilities | 4.08B | 4.01B | 3.91B | 3.79B | 3.62B | 3.66B |
| Stockholders Equity | 440.14M | 431.85M | 400.90M | 379.77M | 353.54M | 371.19M |
Cash Flow | ||||||
| Free Cash Flow | 41.34M | 36.19M | 28.87M | 13.50M | 45.46M | 61.07M |
| Operating Cash Flow | 46.45M | 41.28M | 34.47M | 20.58M | 59.71M | 68.21M |
| Investing Cash Flow | -81.64M | -61.45M | -88.95M | -82.65M | -393.06M | -274.60M |
| Financing Cash Flow | 19.35M | 79.81M | 66.49M | 139.95M | -59.69M | 283.10M |
Arrow Financial Technical Analysis
Positive
30.49
Price Trends
36.51
Positive
34.94
Positive
32.07
Positive
Market Momentum
0.72
Negative
63.73
Neutral
86.73
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AROW, the sentiment is Positive. The current price of 30.49 is below the 20-day moving average (MA) of 37.17, below the 50-day MA of 36.51, and below the 200-day MA of 32.07, indicating a bullish trend. The MACD of 0.72 indicates Negative momentum. The RSI at 63.73 is Neutral, neither overbought nor oversold. The STOCH value of 86.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AROW.
Arrow Financial Risk Analysis
Arrow Financial disclosed 25 risk factors in its most recent earnings report. Arrow Financial reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Arrow Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $587.19M | 11.45 | 12.38% | 2.78% | 38.10% | 68.10% | |
77 Outperform | $658.85M | 12.54 | 12.04% | 3.59% | 8.85% | 82.76% | |
70 Outperform | $557.67M | 10.03 | 10.67% | ― | 17.01% | 61.90% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $617.27M | 120.28 | 0.68% | 4.38% | 6.67% | -84.79% |
* Financial Sector Average
AROW
Arrow Financial
39.15
15.17
63.26%
ACNB
ACNB
56.48
17.76
45.88%
NFBK
Northfield Bancorp
14.40
3.29
29.60%
BWB
Bridgewater Bancshares
19.43
4.56
30.67%
Arrow Financial Corporate Events
M&A TransactionsRegulatory Filings and ComplianceShareholder Meetings
Arrow Financial Advances Toward Closing Adirondack Bancorp Merger
Positive
Jun 11, 2026
Arrow Financial Corporation and Adirondack Bancorp, Inc., both New York-based banking companies, have moved closer to completing their previously announced merger, under which Adirondack will merge into Arrow and Adirondack Bank will be combined w...
Executive/Board ChangesShareholder Meetings
Arrow Financial Shareholders Approve Directors, Pay and Auditor
Positive
Jun 4, 2026
Arrow Financial Corporation reported the results of its 2026 Annual Meeting of Shareholders, held on June 3, 2026, where investors elected four Class A directors to three-year terms expiring in 2029 and approved, on an advisory basis, the company&...
Business Operations and StrategyFinancial DisclosuresShareholder Meetings
Arrow Financial Highlights Record Results at 2026 Annual Meeting
Positive
Jun 3, 2026
At its annual meeting of shareholders held on June 3, 2026, Arrow Financial Corporation presented an overview of its operations, market footprint and leadership, highlighting a network of bank branches and insurance offices, a diversified manageme...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
Arrow Financial gains OCC approval for Adirondack merger
Positive
Jun 1, 2026
Arrow Financial Corporation, a diversified regional financial services provider offering banking, insurance and wealth management across Upstate New York, and Utica‑based Adirondack Bancorp, Inc., a community‑focused lender serving the...
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Arrow Financial Posts Strong Q1 Results Amid Adirondack Deal
Positive
Apr 30, 2026
Arrow Financial Corporation reported first-quarter 2026 net income of $13.5 million, or $0.82 per diluted share, compared with $14.0 million and $0.85 per share in the fourth quarter of 2025, with results pressured by about $790,000 in merger expe...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.