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Oceanfirst Financial
(NASDAQ:OCFC)
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Rating:69Neutral
Price Target:
$21.50
â–²(11.86% Upside)
Action:Reiterated
Date:07/01/26
OCFC’s score is anchored by middling financial fundamentals (strong recent revenue rebound and solid cash conversion, but weaker margins and low ROE) and a favorable earnings-call outlook pointing to improving net interest income and NIM. Technicals are supportive with the stock trading above key moving averages, while valuation is helped by a ~4.1% dividend yield alongside a mid-teens P/E.
Positive Factors
Revenue Recovery & Cash Conversion
A strong TTM revenue rebound combined with free cash flow running at roughly 93% of net income indicates high earnings quality and solid cash conversion. This supports durable internal funding for capital, dividends and strategic initiatives over the next several quarters despite prior volatility.
Negative Factors
Compressed Profitability & Low ROE
Material margin compression and a subdued TTM ROE (~4.2%) signal weakened profitability versus prior years. Persistently low returns reduce reinvestment capacity and constrain long‑term shareholder returns, making earnings recovery essential to justify ongoing dividend and capital plans.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Recovery & Cash Conversion
A strong TTM revenue rebound combined with free cash flow running at roughly 93% of net income indicates high earnings quality and solid cash conversion. This supports durable internal funding for capital, dividends and strategic initiatives over the next several quarters despite prior volatility.
Read all positive factors
Oceanfirst Financial (OCFC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.84B
Dividend Yield4.05%
Average Volume (3M)329.98K
Price to Earnings (P/E)16.3
Beta (1Y)0.98
Revenue Growth2.01%
EPS Growth-23.22%
CountryUS
Employees926
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.17
Shares Outstanding96,700,000
10 Day Avg. Volume457,239
30 Day Avg. Volume329,978
Financial Highlights & Ratios
PEG Ratio-0.53
Price to Book (P/B)0.62
Price to Sales (P/S)1.57
P/FCF Ratio12.96
Enterprise Value/Market Cap1.31
Enterprise Value/Revenue3.63
Enterprise Value/Gross Profit6.64
Enterprise Value/Ebitda22.73
Forecast
1Y Price Target
$19.00Price Target Upside-1.14% Downside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)1.85
Revenue Forecast (FY)$600.65M
Oceanfirst Financial Business Overview & Revenue Model
Company Description
OceanFirst Financial Corp. operates as the bank holding company for OceanFirst Bank N.A. that provides community banking services to retail and commercial customers in the United States. The company accepts deposit products, such as money market a...
How the Company Makes Money
OceanFirst Financial primarily makes money through its banking operations at OceanFirst Bank. Its core earnings are typically driven by (1) net interest income—interest earned on loans and investment securities minus interest paid on deposits and ...
Oceanfirst Financial Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive outlook driven by solid core earnings growth (core EPS +23% YoY), sustained net interest income momentum (+11% YoY), strong loan originations ($429M) and deposit growth, disciplined expense control (core expenses down 3% QoQ), and robust asset quality metrics. Strategic initiatives — outsourcing of residential lending, IT restructuring and AI investment — were highlighted as near-term efficiency drivers. Lowlights were limited and contained: a single commercial relationship drove an uptick in criticized loans, competitive pressure weighed on loan yields, noninterest income was modestly reduced by a lower gain on sale and swap income, and merger-related costs and the final Federal Reserve approval for the Flushing transaction remain execution risks. Overall, the positives outweigh the negatives, supporting a constructive sentiment toward the business trajectory.Positive Updates
Earnings Per Share Growth
GAAP EPS of $0.36 and core EPS of $0.43; GAAP EPS increased $0.01 QoQ and core EPS increased $0.08 YoY (23% increase vs prior year quarter).
Negative Updates
Increase in Criticized/Classified Loans
Criticized and classified loans increased during the quarter driven primarily by a single large commercial relationship; this increase contributed to the quarterly provision despite remaining at low historical levels.
Read all updates
Q1-2026 Updates
Positive
Negative
Earnings Per Share Growth
GAAP EPS of $0.36 and core EPS of $0.43; GAAP EPS increased $0.01 QoQ and core EPS increased $0.08 YoY (23% increase vs prior year quarter).
Read all positive updates
Company Guidance
Management reiterated standalone 2026 guidance calling for mid‑ to high‑single‑digit loan and deposit growth, positive net interest income expansion with net interest margin moving past 3% in the back half of the year, other income of $7–9 million per quarter, core operating expenses stable at $70–71 million per quarter (Q2 core run‑rate expected $70–71M), an estimated CET1 ratio of 10.7%, tangible book value per share of $19.86, an effective tax rate of 23%–25% (Q1 was 24%), and a quarterly cash dividend of $0.20; management also removed the modest impact of further Fed cuts (under about $0.5M on the year) from the outlook and noted these expectations exclude the Flushing acquisition (with a pro forma update planned with Q2 results).Oceanfirst Financial Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
61
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 663.09M | 655.60M | 687.95M | 636.96M | 485.30M | 388.84M |
| Gross Profit | 362.50M | 357.19M | 372.12M | 381.04M | 423.83M | 363.92M |
| EBITDA | 105.92M | 93.27M | 145.20M | 153.17M | 210.40M | 157.12M |
| Net Income | 69.97M | 70.98M | 100.06M | 104.03M | 146.60M | 110.08M |
Balance Sheet | ||||||
| Total Assets | 14.56B | 14.56B | 13.42B | 13.54B | 13.10B | 11.74B |
| Cash, Cash Equivalents and Short-Term Investments | 1.32B | 1.37B | 951.12M | 907.61M | 625.59M | 773.20M |
| Total Debt | 1.50B | 1.63B | 1.26B | 1.05B | 1.48B | 349.81M |
| Total Liabilities | 12.89B | 12.90B | 11.72B | 11.88B | 11.52B | 10.22B |
| Stockholders Equity | 1.67B | 1.66B | 1.70B | 1.66B | 1.58B | 1.52B |
Cash Flow | ||||||
| Free Cash Flow | 106.41M | 79.51M | 84.68M | 116.55M | 229.55M | 117.93M |
| Operating Cash Flow | 114.21M | 87.21M | 92.24M | 124.26M | 250.45M | 159.97M |
| Investing Cash Flow | -1.30B | -1.18B | 106.40M | -488.00M | -1.32B | -1.48B |
| Financing Cash Flow | 1.16B | 1.10B | -228.75M | 349.47M | 1.01B | 223.99M |
Oceanfirst Financial Technical Analysis
Positive
19.22
Price Trends
18.62
Positive
18.46
Positive
18.28
Positive
Market Momentum
0.26
Negative
55.37
Neutral
78.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OCFC, the sentiment is Positive. The current price of 19.22 is above the 20-day moving average (MA) of 18.57, above the 50-day MA of 18.62, and above the 200-day MA of 18.28, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 55.37 is Neutral, neither overbought nor oversold. The STOCH value of 78.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OCFC.
Oceanfirst Financial Risk Analysis
Oceanfirst Financial disclosed 17 risk factors in its most recent earnings report. Oceanfirst Financial reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
Oceanfirst Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.36B | 8.05 | 19.50% | 3.39% | -12.54% | 126.82% | |
77 Outperform | $1.39B | 12.29 | 9.37% | 5.30% | 0.38% | -1.41% | |
75 Outperform | $1.72B | 11.33 | 8.43% | ― | 6.06% | 9.55% | |
73 Outperform | $1.19B | 13.58 | 10.20% | 1.24% | 26.26% | -8.61% | |
73 Outperform | $1.32B | 12.70 | 12.27% | 3.44% | 8.48% | 19.55% | |
69 Neutral | $1.84B | 16.28 | 4.22% | 4.05% | 2.01% | -23.22% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
OCFC
Oceanfirst Financial
19.05
1.09
6.07%
OSBC
Old Second Bancorp
23.23
4.42
23.49%
PEBO
Peoples Bancorp
38.71
8.29
27.27%
TMP
Tompkins Financial Corporation
94.54
30.21
46.97%
CTBI
Community Bancorp
72.75
18.55
34.23%
FSUN
FirstSun Capital Bancorp
38.98
1.29
3.42%
Oceanfirst Financial Corporate Events
Business Operations and StrategyM&A Transactions
OceanFirst Financial Rebalances Risk with Multifamily Loan Sale
Positive
Jun 30, 2026
On June 29, 2026, OceanFirst Financial Corp. announced that OceanFirst Bank N.A. had completed the previously disclosed sale of a $1.3 billion portfolio of more than 1,400 multifamily loans largely tied to New York City rent-regulated properties. ...
Business Operations and StrategyFinancial Disclosures
OceanFirst Sells Multifamily Loans to Reduce CRE Risk
Positive
Jun 8, 2026
On June 8, 2026, OceanFirst Financial Corp. announced that OceanFirst Bank N.A. had agreed to sell $1.4 billion of multifamily loans, representing a majority of the multifamily portfolio acquired with its June 1, 2026 acquisition of Flushing Finan...
Executive/Board ChangesM&A TransactionsPrivate Placements and FinancingRegulatory Filings and Compliance
OceanFirst Finalizes Flushing Merger and Warburg Capital Infusion
Positive
Jun 1, 2026
On June 1, 2026, OceanFirst Financial completed its previously announced mergers with Flushing, assuming $251.9 million of Flushing’s subordinated and junior subordinated debt across multiple note issuances maturing between 2031 and 2037. In...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
OceanFirst Shareholders Back Directors, Auditor and Incentive Plan
Positive
May 28, 2026
At its 2026 Annual Meeting held on May 27, 2026, OceanFirst Financial Corp. stockholders elected thirteen directors to one-year terms and ratified Deloitte Touche LLP as the independent auditor for the fiscal year ending December 31, 2026. Shareh...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
OceanFirst Financial launches May 2026 investor presentation series
Positive
May 1, 2026
OceanFirst Financial Corp., traded on Nasdaq as OCFC, is the holding company for OceanFirst Bank, a regional bank headquartered in Red Bank, N.J., with 41 branches and nine commercial banking centers across New Jersey, New York City and Greater Ph...
Business Operations and StrategyM&A TransactionsRegulatory Filings and ComplianceShareholder Meetings
OceanFirst Wins Fed Approval for Flushing Merger Completion
Positive
Apr 27, 2026
On April 27, 2026, OceanFirst Financial Corp. and Flushing Financial Corporation reported that the U.S. Federal Reserve approved their merger on April 24, 2026, following earlier clearances from New York State regulators and the Office of the Comp...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
OceanFirst Financial Posts Solid Q1 2026 Earnings Improvement
Positive
Apr 23, 2026
OceanFirst Financial Corp. reported first-quarter 2026 net income available to common stockholders of $20.5 million, or $0.36 per diluted share, flat versus a year earlier but up from $13.1 million, or $0.23, in the fourth quarter of 2025. Core ea...
Dividends
OceanFirst Financial Declares Regular Quarterly Cash Dividend
Positive
Apr 15, 2026
On April 15, 2026, OceanFirst Financial Corp. announced that its Board of Directors declared a regular quarterly cash dividend of $0.20 per share on its common stock. The dividend is scheduled to be paid on May 8, 2026, to shareholders of record a...
Business Operations and StrategyM&A TransactionsRegulatory Filings and ComplianceShareholder Meetings
OceanFirst Shareholders Advance Flushing Merger, Reject Warburg Exemption
Positive
Apr 7, 2026
At a special meeting held on April 6, 2026, OceanFirst stockholders approved the issuance of OceanFirst common stock and related securities to Flushing shareholders and Warburg Pincus affiliates as required for the pending merger, with 42,020,260 ...
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.