Simmons First National (NASDAQ:SFNC) Downgraded by Morgan Stanley to "Underweight"

Key Points

• Morgan Stanley downgraded Simmons First National from “equal weight” to “underweight,” while maintaining a $26 price target—about 9.75% above the prior close.
• Analyst sentiment remains mixed, with the stock carrying an overall “Hold” rating and an average price target of $25.50; Piper Sandler upgraded it to “overweight,” while other firms maintained neutral or positive views.
• Simmons First National reported quarterly EPS of $0.50, below the $0.53 consensus estimate, although revenue increased 16.1% year over year. The stock opened at $23.69 and is near its 12-month high of $24.32.

Simmons First National (NASDAQ:SFNC - Get Free Report) was downgraded by analysts at Morgan Stanley from an "equal weight" rating to an "underweight" rating in a report released on Tuesday, MarketBeat.com reports. They currently have a $26.00 price target on the bank's stock. Morgan Stanley's target price would indicate a potential upside of 9.75% from the company's previous close.

Several other brokerages have also recently issued reports on SFNC. Keefe, Bruyette & Woods upped their price target on shares of Simmons First National from $25.00 to $26.00 and gave the company a "market perform" rating in a research report on Friday. National Bank Financial set a $26.00 price objective on shares of Simmons First National in a research note on Friday. Piper Sandler raised Simmons First National from an "underweight" rating to an "overweight" rating and raised their target price for the stock from $26.00 to $27.50 in a research report on Friday. Raymond James Financial reaffirmed an "outperform" rating and set a $25.00 target price on shares of Simmons First National in a report on Friday, July 17th. Finally, DA Davidson reissued a "neutral" rating and issued a $23.00 price target on shares of Simmons First National in a research note on Friday, July 17th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $25.50.

Simmons First National Stock Performance

Shares of SFNC stock opened at $23.69 on Tuesday. The business's 50-day moving average price is $23.17 and its 200-day moving average price is $21.61. Simmons First National has a 12 month low of $17.00 and a 12 month high of $24.32. The firm has a market capitalization of $3.42 billion, a price-to-earnings ratio of -9.36 and a beta of 0.89. The company has a current ratio of 0.93, a quick ratio of 0.92 and a debt-to-equity ratio of 0.36.

Simmons First National (NASDAQ:SFNC - Get Free Report) last released its quarterly earnings data on Thursday, July 16th. The bank reported $0.50 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.53 by ($0.03). Simmons First National had a negative net margin of 24.64% and a positive return on equity of 8.32%. During the same period last year, the company posted $0.44 earnings per share. The firm's quarterly revenue was up 16.1% compared to the same quarter last year. Equities research analysts forecast that Simmons First National will post 2.05 EPS for the current year.

Institutional Trading of Simmons First National

A number of institutional investors have recently bought and sold shares of SFNC. Wellington Management Group LLP acquired a new position in shares of Simmons First National during the 3rd quarter valued at $129,282,000. California State Teachers Retirement System grew its holdings in Simmons First National by 1,978.2% in the second quarter. California State Teachers Retirement System now owns 3,734,238 shares of the bank's stock worth $84,580,000 after purchasing an additional 3,554,556 shares during the period. Basswood Capital Management L.L.C. grew its holdings in Simmons First National by 325.7% in the fourth quarter. Basswood Capital Management L.L.C. now owns 1,143,055 shares of the bank's stock worth $21,547,000 after purchasing an additional 874,513 shares during the period. Leeward Investments LLC MA bought a new stake in Simmons First National in the first quarter valued at $15,744,000. Finally, Goldman Sachs Group Inc. increased its stake in Simmons First National by 97.5% in the fourth quarter. Goldman Sachs Group Inc. now owns 1,469,594 shares of the bank's stock valued at $27,702,000 after purchasing an additional 725,489 shares in the last quarter. Institutional investors own 27.58% of the company's stock.

Simmons First National Company Profile

Simmons First National Corporation NASDAQ: SFNC is a bank holding company headquartered in Pine Bluff, Arkansas. Through its primary operating subsidiary, Simmons Bank, the company maintains a network of more than 200 branches across Arkansas, Tennessee, Missouri, Mississippi, Texas, Oklahoma and North Carolina. Simmons First National offers a full suite of financial services to individuals, small businesses and commercial clients, emphasizing relationship-driven community banking.

The company's core business activities span deposit-taking, lending and payment services.

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