South Plains Financial, Inc. (NASDAQ:SPFI) Stock Has Average Price Target of $49.60 According to Analysts

Key Points

• Analysts remain favorable: South Plains Financial has a “Moderate Buy” consensus from seven analysts, with six buy ratings and an average 12-month price target of $49.60 versus a recent price of $42.80.
• Financial performance exceeded expectations: The company reported quarterly EPS of $0.96, above the $0.94 consensus, and revenue of $64.49 million, ahead of estimates. It also raised its quarterly dividend to $0.18, equivalent to a 1.7% annual yield.
• Insiders reduced their holdings: Company directors sold a combined 260,000 shares worth approximately $11.6 million over the prior three months, while institutional investors owned 54.95% of outstanding shares.

South Plains Financial, Inc. (NASDAQ:SPFI - Get Free Report) has earned an average rating of "Moderate Buy" from the seven analysts that are currently covering the company, MarketBeat Ratings reports. One analyst has rated the stock with a hold recommendation and six have given a buy recommendation to the company. The average 1-year price target among brokers that have covered the stock in the last year is $49.60.

SPFI has been the topic of a number of research analyst reports. Keefe, Bruyette & Woods restated an "outperform" rating and issued a $50.00 price target (up from $48.00) on shares of South Plains Financial in a report on Monday, July 20th. Weiss Ratings reissued a "buy (b+)" rating on shares of South Plains Financial in a research report on Friday, September 25th. Benchmark restated a "buy" rating on shares of South Plains Financial in a research note on Monday, July 20th. Finally, Raymond James Financial reissued an "outperform" rating and issued a $50.00 price objective on shares of South Plains Financial in a research note on Monday, July 20th.

Insiders Place Their Bets

In other news, Director Richard Campbell sold 132,714 shares of the firm's stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $44.75, for a total transaction of $5,938,951.50. Following the transaction, the director owned 1,412,255 shares in the company, valued at approximately $63,198,411.25. This trade represents a 8.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director James Stein sold 100,000 shares of South Plains Financial stock in a transaction dated Tuesday, July 28th. The shares were sold at an average price of $44.54, for a total value of $4,454,000.00. Following the completion of the sale, the director owned 242,872 shares of the company's stock, valued at $10,817,518.88. The trade was a 29.17% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 260,000 shares of company stock worth $11,624,642 in the last three months. Corporate insiders own 24.29% of the company's stock.

Institutional Investors Weigh In On South Plains Financial

Several hedge funds have recently modified their holdings of SPFI. Royal Bank of Canada raised its stake in South Plains Financial by 71.2% in the first quarter. Royal Bank of Canada now owns 642 shares of the company's stock worth $27,000 after buying an additional 267 shares in the last quarter. Northwestern Mutual Wealth Management Co. bought a new position in shares of South Plains Financial in the 2nd quarter worth $103,000. Public Employees Retirement System of Ohio purchased a new stake in shares of South Plains Financial during the 2nd quarter worth $173,000. Janus Henderson Group PLC purchased a new stake in shares of South Plains Financial during the 1st quarter worth $201,000. Finally, Sequoia Financial Advisors LLC bought a new stake in South Plains Financial during the second quarter valued at about $204,000. Hedge funds and other institutional investors own 54.95% of the company's stock.

South Plains Financial Price Performance

Shares of SPFI stock opened at $42.80 on Friday. The stock has a 50 day moving average price of $44.10 and a 200 day moving average price of $42.84. South Plains Financial has a 52-week low of $35.34 and a 52-week high of $46.94. The company has a debt-to-equity ratio of 0.10, a quick ratio of 0.96 and a current ratio of 0.97. The firm has a market capitalization of $806.35 million, a P/E ratio of 11.66 and a beta of 0.49.

South Plains Financial (NASDAQ:SPFI - Get Free Report) last released its earnings results on Friday, July 17th. The company reported $0.96 earnings per share for the quarter, topping analysts' consensus estimates of $0.94 by $0.02. South Plains Financial had a return on equity of 12.36% and a net margin of 20.79%.The business had revenue of $64.49 million for the quarter, compared to analyst estimates of $63.34 million. As a group, sell-side analysts predict that South Plains Financial will post 3.77 earnings per share for the current year.

South Plains Financial Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, August 10th. Shareholders of record on Monday, July 27th were issued a $0.18 dividend. The ex-dividend date was Monday, July 27th. This represents a $0.72 annualized dividend and a dividend yield of 1.7%. This is a positive change from South Plains Financial's previous quarterly dividend of $0.17. South Plains Financial's dividend payout ratio (DPR) is currently 19.62%.

About South Plains Financial

South Plains Financial, Inc NASDAQ: SPFI is a bank holding company headquartered in Lubbock, Texas. Through its principal subsidiary, City Bank, the company provides banking and related financial services to individuals, businesses, agricultural customers and communities in Texas and New Mexico.

City Bank offers a range of products and services, including commercial and consumer lending, real estate loans, agricultural financing, deposit accounts, treasury management, online and mobile banking, mortgage lending, trust and wealth management, and insurance services.

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