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Shore Bancshares (SHBI)
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Shore Bancshares (SHBI) AI Stock Analysis

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SHBI

Shore Bancshares

(NASDAQ:SHBI)

Rating:71Outperform
Price Target:
$17.00
▲(10.03% Upside)
Shore Bancshares' strong valuation metrics, including a low P/E ratio and attractive dividend yield, are the most significant factors driving the score. The company's solid financial performance, despite some revenue volatility, supports its stability. Technical indicators suggest some short-term weakness, but the stock's longer-term outlook remains positive.

Shore Bancshares (SHBI) vs. SPDR S&P 500 ETF (SPY)

Shore Bancshares Business Overview & Revenue Model

Company DescriptionShore Bancshares, Inc. operates as a bank holding company for the Shore United Bank that provides various commercial and consumer banking products and services to individuals, businesses, and other organizations. It offers checking, savings, overnight investment sweep, and money market accounts; and regular and IRA certificates of deposit, as well as CDARS programs and cash management services. The company also provides commercial loans, such as secured and unsecured loans, working capital loans, lines of credit, term loans, accounts receivable financing, real estate acquisition and development loans, construction loans, and letters of credit; residential real estate construction loans; residential mortgage loans; and loans to consumers, including home equity, automobile, installment, home improvement, and personal lines of credit, as well as other consumer financing products. In addition, it offers non-deposit products, such as mutual funds and annuities, and discount brokerage services; and trust, asset management, and financial planning services. Further, the company provides merchant credit card clearing, as well as telephone, mobile, and Internet banking services; safe deposit boxes; debit and credit cards; direct deposit of payroll; and automatic teller machine (ATM) services. It operates 29 full service branches, 30 ATMs, and 5 loan production offices in Baltimore City, Baltimore County, Howard County, Kent County, Queen Anne's County, Caroline County, Talbot County, Dorchester County, Anne Arundel County, and Worcester County in Maryland; Kent County, Delaware; and Accomack County, Virginia. The company was founded in 1876 and is headquartered in Easton, Maryland.
How the Company Makes MoneyShore Bancshares makes money primarily through interest income from loans and investments, as well as non-interest income from fees and service charges associated with its banking products. The company's key revenue streams include interest from commercial and consumer loans, mortgage loan originations, and investment securities. Non-interest income is derived from service fees on deposit accounts, transaction fees, and trust and investment management services. The company's earnings are also influenced by its prudent management of interest rate spreads, strategic geographic presence, and customer relationships. Furthermore, partnerships with local businesses and community organizations play a significant role in expanding its customer base and enhancing its revenue potential.

Shore Bancshares Financial Statement Overview

Summary
Shore Bancshares demonstrates a solid financial standing with strong profitability and stable balance sheet metrics. Despite revenue fluctuations, the company maintains good margins and healthy returns on equity. The cash flow position is strengthened by rising free cash flows, although the dependency on financing cash flows should be monitored for long-term stability.
Income Statement
78
Positive
Shore Bancshares has shown a strong performance in its income statement. The gross profit margin is robust, and the net profit margin is healthy, reflecting effective cost management and profitability. Revenue growth is evident, although it has been inconsistent, showing fluctuations over the past periods, particularly with a significant drop in revenue from 2024 to TTM 2025.
Balance Sheet
70
Positive
The balance sheet indicates a stable financial position, with a reasonable debt-to-equity ratio suggesting moderate leverage. Return on equity is healthy, showing effective use of equity capital. The equity ratio is solid, highlighting a strong equity base relative to assets, although the increasing liabilities over the years pose a risk.
Cash Flow
74
Positive
The cash flow statement presents a positive outlook, with a notable increase in operating cash flow. Free cash flow has grown significantly, indicating good liquidity. However, the free cash flow to net income ratio shows variability, and the company's reliance on financing activities for cash flow might pose a sustainability risk.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue331.85M326.49M238.42M136.93M83.67M70.43M
Gross Profit201.67M196.96M128.70M122.46M77.63M59.45M
EBITDA82.38M74.74M25.12M48.00M24.27M23.52M
Net Income49.47M43.89M11.23M31.18M15.37M15.73M
Balance Sheet
Total Assets6.18B6.23B6.01B3.48B3.46B1.93B
Cash, Cash Equivalents and Short-Term Investments568.15M609.06M482.93M139.09M700.60M326.49M
Total Debt136.16M135.56M85.15M92.98M68.61M30.35M
Total Liabilities5.62B5.69B5.50B3.11B3.11B1.74B
Stockholders Equity552.47M541.07M511.13M364.29M350.69M195.02M
Cash Flow
Free Cash Flow59.81M41.66M16.76M50.23M-10.95M16.05M
Operating Cash Flow64.28M46.89M22.71M52.65M-7.50M18.43M
Investing Cash Flow-98.66M-134.54M172.31M-581.57M38.19M-280.08M
Financing Cash Flow308.82M175.09M121.89M811.00K366.01M353.60M

Shore Bancshares Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price15.45
Price Trends
50DMA
15.58
Negative
100DMA
14.57
Positive
200DMA
14.99
Positive
Market Momentum
MACD
-0.14
Positive
RSI
38.30
Neutral
STOCH
24.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHBI, the sentiment is Neutral. The current price of 15.45 is below the 20-day moving average (MA) of 16.05, below the 50-day MA of 15.58, and above the 200-day MA of 14.99, indicating a neutral trend. The MACD of -0.14 indicates Positive momentum. The RSI at 38.30 is Neutral, neither overbought nor oversold. The STOCH value of 24.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SHBI.

Shore Bancshares Risk Analysis

Shore Bancshares disclosed 36 risk factors in its most recent earnings report. Shore Bancshares 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

Shore Bancshares Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$437.28M15.487.36%3.10%32.19%-26.13%
74
Outperform
$474.57M11.0917.02%1.16%6.99%12.46%
71
Outperform
$511.96M9.559.88%3.16%2.66%128.06%
68
Neutral
$487.17M17.657.44%88.14%0.09%
67
Neutral
$17.02B11.609.79%3.95%10.61%2.06%
63
Neutral
$507.00M18.174.56%2.92%5.00%72.45%
48
Neutral
$419.35M-9.79%0.20%-1.29%-1023.82%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SHBI
Shore Bancshares
15.18
2.68
21.44%
ACNB
ACNB
41.92
5.25
14.32%
UNTY
Unity Bancorp
46.48
15.66
50.81%
FFWM
First Foundation
4.90
-1.25
-20.33%
HONE
HarborOne Bancorp
11.63
-0.04
-0.34%
BCAL
Southern California Bancorp
15.18
0.61
4.19%

Shore Bancshares Corporate Events

Dividends
Shore Bancshares Declares Quarterly Cash Dividend
Positive
Aug 1, 2025

On August 1, 2025, Shore Bancshares, Inc. announced that its Board of Directors declared a quarterly cash dividend of $0.12 per share, payable on August 25, 2025, to stockholders of record as of August 11, 2025. This announcement reflects the company’s ongoing commitment to providing value to its shareholders and may positively impact its market positioning by demonstrating financial stability and shareholder confidence.

The most recent analyst rating on (SHBI) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Shore Bancshares stock, see the SHBI Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Shore Bancshares Releases Investor Presentation June 2025
Neutral
Jul 25, 2025

On June 30, 2025, Shore Bancshares released an investor presentation detailing its financial information for potential meetings with investors and analysts. The presentation, which is not subject to updates or liability under the Securities Exchange Act of 1934, highlights the company’s strategic positioning and market presence, with a strong deposit market share in Maryland. The release underscores the company’s focus on maintaining its competitive edge in the financial services industry, despite the inherent risks and uncertainties outlined in the forward-looking statements.

The most recent analyst rating on (SHBI) stock is a Hold with a $16.00 price target. To see the full list of analyst forecasts on Shore Bancshares stock, see the SHBI Stock Forecast page.

Shareholder MeetingsBusiness Operations and Strategy
Shore Bancshares Shareholders Approve Key Proposals at Meeting
Neutral
Jun 4, 2025

At its recent Annual Meeting, Shore Bancshares, Inc. shareholders approved several key proposals, including the election of four Class I directors for a term ending in 2028, the adoption of the 2025 Equity Incentive Plan, and the 2025 Employee Stock Purchase Plan. Additionally, they ratified Crowe LLP as the independent public accounting firm for the fiscal year ending December 31, 2025, and approved a non-binding advisory resolution on executive compensation. These approvals reflect the company’s strategic focus on governance, employee incentives, and financial oversight.

The most recent analyst rating on (SHBI) stock is a Hold with a $16.00 price target. To see the full list of analyst forecasts on Shore Bancshares stock, see the SHBI Stock Forecast page.

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.Date of analysis: Aug 06, 2025