Five Star Bancorp (NASDAQ:FSBC) Stock Rating Reaffirmed as Buy by DA Davidson

Key Points

• DA Davidson reaffirmed a “Buy” rating on Five Star Bancorp and set a $55 price target, implying approximately 21% upside from the reported share price. The broader analyst consensus is “Moderate Buy,” with a $47.25 target.
• Five Star Bancorp exceeded third-quarter expectations, reporting $0.92 in EPS on $52.62 million in revenue, supported by stronger net interest income, loan growth and improved margins.
• The company strengthened its balance sheet through a stock offering that raised about $130 million, but nonperforming loans increased and the 11% rise in share count could dilute near-term per-share earnings growth.

Five Star Bancorp (NASDAQ:FSBC - Get Free Report)'s stock had its "buy" rating reaffirmed by equities researchers at DA Davidson in a research note issued to investors on Tuesday, Benzinga reports. They currently have a $55.00 target price on the stock. DA Davidson's target price suggests a potential upside of 20.99% from the stock's current price.

Other analysts also recently issued research reports about the stock. Zacks Research raised shares of Five Star Bancorp from a "strong sell" rating to a "hold" rating in a research report on Friday, August 28th. Stephens set a $51.00 price target on Five Star Bancorp in a report on Monday, July 27th. Finally, Weiss Ratings lowered Five Star Bancorp from a "buy (b+)" rating to a "buy (b)" rating in a report on Monday, September 21st. Three equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $47.25.

Five Star Bancorp Stock Performance

Shares of FSBC stock traded up $0.96 during trading hours on Tuesday, hitting $45.46. 218,987 shares of the company were exchanged, compared to its average volume of 130,271. The firm has a market cap of $1.12 billion, a P/E ratio of 13.45 and a beta of 0.55. Five Star Bancorp has a fifty-two week low of $32.20 and a fifty-two week high of $50.26. The company has a 50 day simple moving average of $44.42 and a two-hundred day simple moving average of $42.59.

Five Star Bancorp (NASDAQ:FSBC - Get Free Report) last announced its quarterly earnings data on Tuesday, October 27th. The company reported $0.92 EPS for the quarter, topping the consensus estimate of $0.85 by $0.07. The company had revenue of $52.62 million during the quarter, compared to the consensus estimate of $51.31 million. Five Star Bancorp had a net margin of 25.92% and a return on equity of 15.92%. As a group, sell-side analysts expect that Five Star Bancorp will post 3.50 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the stock. Davis Asset Management L.P. bought a new position in shares of Five Star Bancorp in the second quarter valued at approximately $73,595,000. BlackRock Inc. bought a new position in shares of Five Star Bancorp in the second quarter valued at approximately $64,816,000. Dimensional Fund Advisors LP lifted its holdings in shares of Five Star Bancorp by 12.0% in the first quarter. Dimensional Fund Advisors LP now owns 321,938 shares of the company's stock valued at $12,143,000 after purchasing an additional 34,396 shares in the last quarter. Deprince Race & Zollo Inc. lifted its holdings in shares of Five Star Bancorp by 24.9% in the first quarter. Deprince Race & Zollo Inc. now owns 155,274 shares of the company's stock valued at $5,857,000 after purchasing an additional 30,936 shares in the last quarter. Finally, Bank of New York Mellon Corp bought a new position in shares of Five Star Bancorp in the second quarter valued at approximately $4,642,000. Institutional investors own 46.94% of the company's stock.

Key Stories Impacting Five Star Bancorp

Here are the key news stories impacting Five Star Bancorp this week:

• Positive Sentiment: Five Star reported third-quarter net income of $21.9 million, up from $19.4 million in the prior quarter and $16.3 million a year earlier. Earnings were $0.92 per share, exceeding analyst estimates of approximately $0.85-$0.86, while revenue of $52.62 million also topped expectations. Five Star Bancorp Announces Third Quarter 2026 Results
• Positive Sentiment: Core banking performance strengthened: net interest income rose 11% sequentially to $50.9 million, net interest margin improved to 3.69%, and the efficiency ratio improved to 39.13%. These gains were supported by higher-yielding loan growth and lower funding costs.
• Positive Sentiment: Loans held for investment increased $184.5 million, or 4%, during the quarter and were up 21% year over year. Non-wholesale deposits grew 2%, while the company reported a $0.25-per-share dividend and approximately $130 million in net proceeds from a public stock offering to fund future growth. Five Star Bancorp Reports Strong Q3 Earnings and Growth
• Neutral Sentiment: The capital raise strengthened FSBC’s balance sheet, lifting its common equity Tier 1 ratio to 12.52%, but the issuance of 3.13 million new shares increased the share count by roughly 11%, which may limit near-term per-share benefit from earnings growth.
• Neutral Sentiment: Short interest was reported at zero shares as of October 26, suggesting little evidence of bearish positioning or short-covering pressure.
• Negative Sentiment: Nonperforming loans rose to $13.3 million from $3.1 million at year-end, though the nonperforming-loan ratio improved slightly sequentially to 0.28% and the largest troubled credit remains well collateralized.
• Negative Sentiment: Other comprehensive loss reached $3.0 million, non-interest income declined 10% sequentially, and return on average equity fell to 15.04% from 16.67%, highlighting investment-market volatility and the costs of expansion.

About Five Star Bancorp

Five Star Bancorp is the bank holding company for Five Star Bank, a community bank headquartered in the Sacramento, California, area. The bank provides commercial banking services to businesses, professionals, nonprofit organizations and individuals, with an emphasis on relationship-based banking and local market expertise.

Five Star Bank offers a range of deposit products, including checking, savings, money market and time deposit accounts, along with commercial lending solutions. Its lending activities include commercial real estate, construction and land development, commercial and industrial, small business and residential real estate loans.