First Interstate BancSystem (NASDAQ:FIBK) Cut to "Sell" at Wall Street Zen

Key Points

• Wall Street Zen downgraded First Interstate BancSystem to “sell” from “hold.” The broader analyst consensus is “Reduce,” with an average price target of $37.00.
• Third-quarter earnings per share came in at $0.65, below the $0.68 consensus estimate, although revenue of $249.5 million slightly exceeded expectations. Net income declined year over year, while analysts forecast full-year EPS of $2.88.
• The company declared a quarterly dividend of $0.47 per share, or $1.88 annually, implying an approximately 5.2% yield; however, investors remain concerned about weak core earnings growth, a shrinking loan portfolio and recent insider selling.

First Interstate BancSystem (NASDAQ:FIBK - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued on Saturday, Wall Street Zen reports.

A number of other equities research analysts have also recently commented on FIBK. Benchmark upgraded First Interstate BancSystem to a "hold" rating in a research report on Wednesday, September 23rd. DA Davidson reiterated a "neutral" rating and set a $39.00 price target on shares of First Interstate BancSystem in a research report on Monday, July 27th. Weiss Ratings reiterated a "buy (b)" rating on shares of First Interstate BancSystem in a research report on Monday, September 28th. Wells Fargo & Company reissued an "underweight" rating and issued a $34.00 price objective (down from $36.00) on shares of First Interstate BancSystem in a report on Monday, August 10th. Finally, Barclays boosted their price objective on First Interstate BancSystem from $37.00 to $38.00 and gave the company an "underweight" rating in a research report on Monday, October 5th. Two analysts have rated the stock with a Buy rating, four have given a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat, First Interstate BancSystem presently has a consensus rating of "Reduce" and an average target price of $37.00.

First Interstate BancSystem Stock Performance

Shares of NASDAQ FIBK opened at $36.78 on Friday. The company's fifty day moving average price is $36.50 and its 200 day moving average price is $36.55. First Interstate BancSystem has a 1 year low of $29.39 and a 1 year high of $40.60. The company has a market capitalization of $3.51 billion, a PE ratio of 11.49 and a beta of 0.73. The company has a debt-to-equity ratio of 0.09, a quick ratio of 0.69 and a current ratio of 0.69.

First Interstate BancSystem (NASDAQ:FIBK - Get Free Report) last released its quarterly earnings data on Thursday, October 22nd. The financial services provider reported $0.65 earnings per share for the quarter, missing analysts' consensus estimates of $0.68 by ($0.03). The firm had revenue of $249.50 million during the quarter, compared to analysts' expectations of $247.93 million. First Interstate BancSystem had a net margin of 23.63% and a return on equity of 9.33%. On average, research analysts predict that First Interstate BancSystem will post 2.88 earnings per share for the current year.

Insider Buying and Selling

In related news, major shareholder Julie A. Scott sold 2,700 shares of the business's stock in a transaction that occurred on Wednesday, September 16th. The stock was sold at an average price of $37.64, for a total transaction of $101,628.00. Following the completion of the sale, the insider directly owned 484,309 shares in the company, valued at approximately $18,229,390.76. The trade was a 0.55% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, major shareholder Jonathan R. Scott sold 16,929 shares of the stock in a transaction on Friday, September 11th. The shares were sold at an average price of $37.03, for a total value of $626,880.87. Following the completion of the transaction, the insider directly owned 825,809 shares of the company's stock, valued at approximately $30,579,707.27. This represents a 2.01% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 32,700 shares of company stock valued at $1,213,976 in the last three months. Insiders own 8.00% of the company's stock.

Institutional Investors Weigh In On First Interstate BancSystem

Large investors have recently modified their holdings of the business. Integrated Wealth Concepts LLC purchased a new position in shares of First Interstate BancSystem in the second quarter worth about $26,000. Root Financial Partners LLC purchased a new stake in First Interstate BancSystem during the 3rd quarter valued at about $25,000. Allworth Financial LP acquired a new stake in First Interstate BancSystem in the 2nd quarter valued at about $62,000. Public Employees Retirement System of Ohio acquired a new stake in First Interstate BancSystem in the 2nd quarter valued at about $65,000. Finally, SJS Investment Consulting Inc. lifted its stake in First Interstate BancSystem by 15,876.9% in the 1st quarter. SJS Investment Consulting Inc. now owns 2,077 shares of the financial services provider's stock worth $69,000 after purchasing an additional 2,064 shares in the last quarter. Hedge funds and other institutional investors own 88.71% of the company's stock.

First Interstate BancSystem News Roundup

Here are the key news stories impacting First Interstate BancSystem this week:

• Positive Sentiment: First Interstate declared a quarterly dividend of $0.47 per share, equivalent to $1.88 annually and a yield of approximately 5.2%. The dividend supports the stock’s income appeal. First Interstate dividend information
• Positive Sentiment: Third-quarter revenue totaled $249.5 million, slightly exceeding analyst expectations of $247.93 million. Net interest margin also improved to 3.53%, a potentially encouraging sign for future earnings if sustained. First Interstate third-quarter earnings release
• Neutral Sentiment: Major shareholder Jonathan Scott sold 5,000 shares for approximately $184,500. The sale reduced his holdings by only 0.61%, leaving him with 812,738 shares, so the transaction is relatively small compared with his remaining stake. SEC insider ownership filing
• Negative Sentiment: FIBK reported third-quarter earnings of $0.65 per diluted share, missing consensus estimates, which ranged from roughly $0.70 to $0.92 depending on the data provider. Net income fell to $62.2 million from $71.4 million a year earlier, while earnings declined to $0.65 from $0.69 per share. First Interstate earnings flash
• Negative Sentiment: Investors remain concerned about weak core earnings growth, a contracting loan portfolio and a declining asset base. These trends suggest that improved margins have not yet translated into stronger overall operating performance relative to regional-bank peers. First Interstate Q3 analysis

About First Interstate BancSystem

First Interstate BancSystem, Inc is a financial holding company headquartered in Billings, Montana. Through its principal subsidiary, First Interstate Bank, the company provides community banking services to individuals, businesses, agricultural customers and governmental entities.

First Interstate Bank offers deposit accounts, consumer and commercial loans, mortgage lending, credit cards, cash-management and treasury-management services, online and mobile banking, and wealth-management and investment services.

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