Wall Street Zen Upgrades FinWise Bancorp (NASDAQ:FINW) to "Sell"

Key Points

• Wall Street Zen upgraded FinWise Bancorp from “strong sell” to “sell,” while broader analyst sentiment remains “Hold” with a consensus price target of $18.00.
• FinWise shares opened at $13.33, near the lower end of their 12-month range of $12.82 to $22.49, and were recently trading below both their 50-day and 200-day moving averages.
• The company reported quarterly EPS of $0.15, missing estimates of $0.24, despite revenue of $54.34 million exceeding the $47.11 million consensus forecast; it also authorized repurchases of up to 5% of outstanding shares.

FinWise Bancorp (NASDAQ:FINW - Get Free Report) was upgraded by stock analysts at Wall Street Zen from a "strong sell" rating to a "sell" rating in a research note issued to investors on Saturday, Wall Street Zen reports.

A number of other research analysts have also commented on the company. Raymond James Financial reaffirmed an "outperform" rating and issued a $16.00 price objective on shares of FinWise Bancorp in a report on Friday, July 31st. Weiss Ratings reissued a "hold (c)" rating on shares of FinWise Bancorp in a report on Monday, August 3rd. Stephens cut shares of FinWise Bancorp from an "overweight" rating to an "equal weight" rating and set a $16.00 target price for the company. in a research report on Thursday, August 6th. Finally, Zacks Research downgraded shares of FinWise Bancorp from a "hold" rating to a "strong sell" rating in a research note on Monday, August 3rd. Two analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $18.00.

FinWise Bancorp Stock Down 0.9%

Shares of NASDAQ:FINW opened at $13.33 on Friday. FinWise Bancorp has a 12-month low of $12.82 and a 12-month high of $22.49. The stock has a market cap of $185.02 million, a PE ratio of 13.89 and a beta of 0.70. The business has a 50 day moving average of $13.90 and a 200-day moving average of $14.76.

FinWise Bancorp (NASDAQ:FINW - Get Free Report) last posted its earnings results on Wednesday, July 29th. The company reported $0.15 EPS for the quarter, missing the consensus estimate of $0.24 by ($0.09). The firm had revenue of $54.34 million during the quarter, compared to analyst estimates of $47.11 million. FinWise Bancorp had a net margin of 6.76% and a return on equity of 7.04%. Equities research analysts expect that FinWise Bancorp will post 0.77 earnings per share for the current year.

FinWise Bancorp announced that its Board of Directors has initiated a stock repurchase plan on Thursday, May 21st that authorizes the company to repurchase 685,000,000,000 shares. This repurchase authorization authorizes the company to purchase up to 5% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's management believes its stock is undervalued.

Hedge Funds Weigh In On FinWise Bancorp

Hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. bought a new stake in FinWise Bancorp during the second quarter worth about $7,549,000. Geode Capital Management LLC grew its stake in FinWise Bancorp by 109.3% during the second quarter. Geode Capital Management LLC now owns 204,323 shares of the company's stock worth $3,068,000 after buying an additional 106,683 shares in the last quarter. Wasatch Advisors LP increased its holdings in FinWise Bancorp by 7.2% in the 3rd quarter. Wasatch Advisors LP now owns 754,543 shares of the company's stock valued at $14,631,000 after buying an additional 50,434 shares during the period. Militia Capital Management LLC bought a new position in FinWise Bancorp in the 1st quarter valued at about $498,000. Finally, Goldman Sachs Group Inc. raised its position in shares of FinWise Bancorp by 186.3% in the 1st quarter. Goldman Sachs Group Inc. now owns 40,136 shares of the company's stock valued at $703,000 after buying an additional 26,115 shares in the last quarter. Institutional investors own 35.41% of the company's stock.

About FinWise Bancorp

FinWise Bancorp is the bank holding company for FinWise Bank, a digital‐first community bank headquartered in Lindon, Utah. The company specializes in providing commercial lending and deposit products to marketplace lending platforms, fintech companies and small to mid‐sized businesses across the United States. FinWise Bancorp operates through its wholly owned subsidiary, FinWise Bank, which is FDIC‐insured and leverages a technology‐driven model to deliver banking services efficiently.

The company's primary business activities include participant financing arrangements for marketplace lenders and other fintech platforms, as well as direct commercial loans.

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