Alerus Financial (ALRS) Soars 3.53% on Positive Analyst Outlook

Alerus Financial (ALRS) shares surged 3.53% today, marking the third consecutive day of gains, with a cumulative increase of 4.76% over the past three days. The stock price reached its highest level since December 2024, with an intraday gain of 4.75%.

The strategy of buying ALRS shares after they reached a recent high and holding for 1 week resulted in a significant loss. The share price of ALRS decreased by 31% over the past three years, and during the same period, the earnings per share (EPS) dropped by 39% each year. This decline in EPS is worse than the 11% compound annual share price fall. Therefore, holding ALRS shares for 1 week after they reached a recent high is not a profitable strategy.

Analysts have shown a positive outlook on Alerus Financial, with Piper Sandler recently increasing their price target from $22.00 to $23.00 while maintaining a "neutral" rating. This adjustment reflects a growing confidence in the company's prospects. Additionally, Hovde Group analyst Brendan Nosal has maintained a "buy" rating for Alerus Financial, setting a target price of $21.00, further indicating optimism about the stock's potential.

Corporate actions have also played a significant role in influencing Alerus Financial's stock price. HMN Financial Inc. completed a merger with Alerus Financial Corp, where shareholders received 1.25 shares of Alerus Financial for each old share held. This merger, finalized on October 9th, 2024, has likely impacted stockholder dynamics and market perception, contributing to the recent upward trend in the stock price.