Patriot National Bancorp Inc Stock Upgraded (PNBK)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

NEW YORK ( TheStreet) -- Patriot National Bancorp (Nasdaq: PNBK) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income and expanding profit margins. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good.

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Highlights from the ratings report include:
  • Powered by its strong earnings growth of 110.00% and other important driving factors, this stock has surged by 38.68% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 113.4% when compared to the same quarter one year prior, rising from -$3.91 million to $0.53 million.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 11.6%. Since the same quarter one year prior, revenues slightly dropped by 9.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • PATRIOT NATIONAL BANCORP INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, PATRIOT NATIONAL BANCORP INC reported poor results of -$0.19 versus -$0.02 in the prior year.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, PATRIOT NATIONAL BANCORP INC underperformed against that of the industry average and is significantly less than that of the S&P 500.

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