ServisFirst Bancshares (NYSE:SFBS) Stock Dropped to Strong Sell by Zacks Research

Key Points

• Zacks Research downgraded ServisFirst Bancshares to “strong sell” from “hold,” although the broader analyst consensus remains “Moderate Buy” with an average price target of $46.50.
• Shares opened at $39.81, below the 52-week high of $46.04. The company’s latest quarterly earnings came in at $0.80 per share, missing the $0.83 analyst consensus, while revenue was also slightly below expectations.
• Institutional investors and hedge funds own 67.31% of the stock, with several major firms establishing new positions during the first and second quarters.

ServisFirst Bancshares (NYSE:SFBS - Get Free Report) was downgraded by equities researchers at Zacks Research from a "hold" rating to a "strong sell" rating in a report issued on Tuesday, Zacks reports.

Other research analysts have also issued reports about the stock. Piper Sandler decreased their price target on shares of ServisFirst Bancshares from $47.00 to $46.00 and set an "overweight" rating on the stock in a research note on Friday, October 2nd. Wall Street Zen lowered ServisFirst Bancshares from a "buy" rating to a "hold" rating in a research note on Sunday, August 30th. Weiss Ratings upgraded ServisFirst Bancshares from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday, October 9th. Finally, Raymond James Financial cut ServisFirst Bancshares from a "strong-buy" rating to an "outperform" rating and reduced their target price for the company from $50.00 to $45.00 in a report on Tuesday, October 6th. Four research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $46.50.

ServisFirst Bancshares Stock Performance

SFBS opened at $39.81 on Tuesday. The company has a quick ratio of 0.98, a current ratio of 0.98 and a debt-to-equity ratio of 0.02. The company has a market cap of $4.35 billion, a price-to-earnings ratio of 12.59 and a beta of 0.91. ServisFirst Bancshares has a 52-week low of $33.60 and a 52-week high of $46.04. The firm's fifty day simple moving average is $41.54 and its two-hundred day simple moving average is $41.17.

ServisFirst Bancshares (NYSE:SFBS - Get Free Report) last released its earnings results on Monday, October 19th. The financial services provider reported $0.80 EPS for the quarter, missing analysts' consensus estimates of $0.83 by ($0.03). The company had revenue of $172.93 million for the quarter, compared to analysts' expectations of $173.13 million. ServisFirst Bancshares had a return on equity of 17.66% and a net margin of 32.53%. Equities analysts anticipate that ServisFirst Bancshares will post 3.18 earnings per share for the current fiscal year.

Institutional Investors Weigh In On ServisFirst Bancshares

Hedge funds have recently modified their holdings of the business. BlackRock Inc. purchased a new position in shares of ServisFirst Bancshares in the second quarter worth about $670,908,000. Davis Asset Management L.P. purchased a new stake in ServisFirst Bancshares during the 2nd quarter valued at about $78,975,000. Copeland Capital Management LLC acquired a new stake in ServisFirst Bancshares in the 1st quarter valued at about $54,879,000. Arete Wealth Advisors LLC acquired a new stake in ServisFirst Bancshares in the 1st quarter valued at about $33,348,000. Finally, Bank of New York Mellon Corp purchased a new position in ServisFirst Bancshares in the 2nd quarter worth approximately $35,791,000. 67.31% of the stock is currently owned by institutional investors and hedge funds.

ServisFirst Bancshares Company Profile

ServisFirst Bancshares, Inc is a bank holding company headquartered in Birmingham, Alabama. Its principal subsidiary, ServisFirst Bank, provides commercial and consumer banking services to businesses, professionals and individuals.

The bank offers deposit accounts, commercial and residential real estate lending, business loans, treasury management, private banking, mortgage services and wealth management. It emphasizes relationship-based banking and serves clients through banking offices and digital channels.

Founded in 2005, ServisFirst Bank has expanded beyond Alabama into markets including Florida, Georgia, Tennessee, South Carolina, North Carolina and Virginia.

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