Eagle Bancorp Inc. (EGBN) Plunges 2.96% on Downgrades

Eagle Bancorp Inc. (EGBN) shares fell 2.96% today, marking the fifth consecutive day of decline, with a total drop of 10.87% over the past five days. The share price hit its lowest level since June 2024, with an intraday decline of 3.19%.

The strategy of buying EGBN shares after they reach a recent low and holding for one week resulted in poor performance over the past five years. The strategy yielded a return of -30.10%, significantly underperforming the benchmark return of 56.81%. With an excess return of -86.92% and a CAGR of -13.67%, the strategy faced substantial losses and did not capitalize on market gains. Additionally, the strategy had a high maximum drawdown of -57.18%, indicating significant volatility, and a Sharpe ratio of -0.31, suggesting that the risk-adjusted returns were unfavorable.

On June 17, 2025, Wall Street Zen downgraded Eagle Bancorp's shares to a "sell" rating, reflecting a bearish sentiment towards the company. This move was accompanied by Keefe, Bruyette & Woods reducing their price objective for Eagle Bancorp, further indicating a negative outlook for the stock. The technical forecast for Eagle Bancorp has also weakened, with the stock being downgraded to a "Strong Sell" candidate as of June 17, 2025. The stock price has fallen consistently, and there are several negative signals from short and long-term moving averages, contributing to a pessimistic forecast for its performance in the near term. There is no support from accumulated volume below the current level, suggesting potential further declines.