First Internet Bancorp (NASDAQ:INBK) Stock Rating Cut to Hold at Wall Street Zen

Key Points

• Wall Street Zen downgraded First Internet Bancorp from “buy” to “hold,” while the broader analyst consensus is also “hold,” with two buys, three holds and one sell and an average price target of $30.62.
• First Internet Bancorp’s quarterly results missed expectations: EPS was $0.57 versus the $0.78 consensus, and revenue was $43.94 million versus $46.17 million forecast.
• Despite the earnings miss, the bank reported improving operating trends, including record quarterly revenue, higher deposits and net interest income, an expanded net interest margin and lower net charge-offs; institutional investors own 65.46% of the stock.

First Internet Bancorp (NASDAQ:INBK - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report released on Saturday, Wall Street Zen reports.

Other analysts have also issued research reports about the company. Benchmark increased their price objective on First Internet Bancorp from $33.00 to $35.00 and gave the company a "buy" rating in a report on Friday, July 31st. Keefe, Bruyette & Woods boosted their target price on First Internet Bancorp from $27.00 to $29.00 and gave the stock a "market perform" rating in a research note on Friday. Zacks Research downgraded First Internet Bancorp from a "strong-buy" rating to a "hold" rating in a research note on Tuesday. Piper Sandler upped their target price on First Internet Bancorp from $26.00 to $29.50 and gave the company a "neutral" rating in a research report on Friday, July 31st. Finally, Weiss Ratings reiterated a "sell (d+)" rating on shares of First Internet Bancorp in a research note on Friday, October 2nd. Two analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company has an average rating of "Hold" and an average price target of $30.62.

First Internet Bancorp Stock Performance

INBK stock opened at $25.81 on Friday. The firm has a market cap of $225.42 million, a price-to-earnings ratio of 15.18 and a beta of 0.87. The firm has a 50-day simple moving average of $27.17 and a two-hundred day simple moving average of $24.72. First Internet Bancorp has a one year low of $17.05 and a one year high of $31.09. The company has a debt-to-equity ratio of 0.95, a quick ratio of 0.87 and a current ratio of 0.88.

First Internet Bancorp (NASDAQ:INBK - Get Free Report) last issued its quarterly earnings data on Thursday, October 29th. The bank reported $0.57 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.78 by ($0.21). First Internet Bancorp had a return on equity of 4.32% and a net margin of 4.27%. The firm had revenue of $43.94 million during the quarter, compared to analysts' expectations of $46.17 million. On average, equities analysts forecast that First Internet Bancorp will post 2.36 EPS for the current fiscal year.

Institutional Investors Weigh In On First Internet Bancorp

A number of institutional investors and hedge funds have recently modified their holdings of the company. BlackRock Inc. acquired a new stake in First Internet Bancorp in the second quarter valued at approximately $20,209,000. Heartland Advisors Inc. acquired a new stake in First Internet Bancorp in the 2nd quarter valued at $10,450,000. Aegis Financial Corp increased its holdings in First Internet Bancorp by 41.5% in the 1st quarter. Aegis Financial Corp now owns 354,261 shares of the bank's stock worth $7,220,000 after acquiring an additional 103,941 shares in the last quarter. Quantinno Capital Management LP increased its holdings in First Internet Bancorp by 14.5% in the 1st quarter. Quantinno Capital Management LP now owns 162,421 shares of the bank's stock worth $3,310,000 after acquiring an additional 20,582 shares in the last quarter. Finally, Wellington Management Group LLP purchased a new stake in First Internet Bancorp in the 2nd quarter worth $1,649,000. Institutional investors and hedge funds own 65.46% of the company's stock.

First Internet Bancorp News Roundup

Here are the key news stories impacting First Internet Bancorp this week:

• Positive Sentiment: Improved operating performance and outlook: Third-quarter revenue reached a record $43.9 million, up 7% sequentially. Net interest income rose 7%, net interest margin expanded to 2.47%, deposits increased 7% to $5.15 billion, and net charge-offs declined to 0.82% from 1.77%. Management expects fourth-quarter diluted EPS of $1.02-$1.07 and net interest margin of 2.75%-2.80%. First Internet Bancorp Reports Record Third-Quarter Revenue
• Positive Sentiment: Keefe, Bruyette & Woods raised its price target to $29 from $27 while maintaining a “market perform” rating, implying roughly 12% upside from the referenced share price. The target increase reflects some confidence in the bank’s earnings outlook, though the neutral rating limits the bullish signal. Keefe, Bruyette and Woods Price Target Update
• Neutral Sentiment: Management’s earnings call will provide additional detail on credit quality, deposit growth, margins and the elevated fourth-quarter earnings forecast. Investors are likely to focus on whether the projected improvement is sustainable. First Internet Bancorp Q3 2026 Earnings Call Transcript
• Negative Sentiment: Third-quarter earnings missed expectations: EPS was reported at $0.57 versus the $0.78 consensus estimate, while revenue of $43.94 million came in below the $46.17 million forecast. The earnings miss, along with negative net margin and return on equity figures cited in the reports, likely contributed to the stock’s decline. First Internet Bancorp Lags Q3 Earnings and Revenue Estimates
• Negative Sentiment: Zacks Research downgraded INBK from “strong buy” to “hold,” adding to near-term investor caution following the earnings shortfall. Zacks Research Rating Update

First Internet Bancorp Company Profile

First Internet Bancorp is a bank holding company headquartered in Fishers, Indiana. Its principal subsidiary, First Internet Bank, provides a range of banking products and financial services to businesses, organizations and individual consumers.

First Internet Bank's offerings include commercial and industrial lending, commercial real estate financing, small business and SBA loans, public finance, residential mortgage lending, consumer loans, deposit accounts and treasury management services.

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