S&T Bancorp, Inc. (NASDAQ:STBA) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Analyst sentiment is moderately positive: Seven brokerages collectively rate S&T Bancorp “Moderate Buy,” with an average 12-month price target of $51.60.
• Quarterly results exceeded expectations: The company reported EPS of $1.02 versus the $0.92 consensus estimate and revenue of $105.24 million, slightly above forecasts.
• Shareholder returns remain a focus: S&T Bancorp authorized a $100 million stock repurchase program covering up to 5.6% of shares and pays a $0.37 quarterly dividend, yielding about 2.9% annually.

S&T Bancorp, Inc. (NASDAQ:STBA - Get Free Report) has received a consensus rating of "Moderate Buy" from the seven brokerages that are covering the stock, MarketBeat Ratings reports. Four equities research analysts have rated the stock with a hold recommendation, two have given a buy recommendation and one has issued a strong buy recommendation on the company. The average 12-month target price among brokers that have issued ratings on the stock in the last year is $51.60.

A number of analysts have recently weighed in on STBA shares. Weiss Ratings reiterated a "buy (b)" rating on shares of S&T Bancorp in a report on Friday, July 24th. Zacks Research raised S&T Bancorp from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, July 28th. Hovde Group reiterated a "market perform" rating and issued a $54.00 price objective (up from $47.00) on shares of S&T Bancorp in a report on Monday, July 27th. Piper Sandler increased their price objective on S&T Bancorp from $51.00 to $53.00 and gave the stock a "neutral" rating in a report on Monday, July 27th. Finally, Keefe, Bruyette & Woods lifted their price objective on S&T Bancorp from $49.00 to $52.00 and gave the stock a "market perform" rating in a research report on Monday, July 27th.

S&T Bancorp Price Performance

STBA stock opened at $50.64 on Tuesday. The company's 50 day moving average is $50.45 and its 200 day moving average is $46.21. The stock has a market cap of $1.79 billion, a price-to-earnings ratio of 13.47 and a beta of 0.84. The company has a current ratio of 0.99, a quick ratio of 0.99 and a debt-to-equity ratio of 0.05. S&T Bancorp has a 1-year low of $34.38 and a 1-year high of $53.50.

S&T Bancorp (NASDAQ:STBA - Get Free Report) last announced its quarterly earnings data on Thursday, July 23rd. The financial services provider reported $1.02 EPS for the quarter, beating the consensus estimate of $0.92 by $0.10. S&T Bancorp had a return on equity of 9.74% and a net margin of 24.51%.The firm had revenue of $105.24 million for the quarter, compared to analyst estimates of $104.43 million. Sell-side analysts predict that S&T Bancorp will post 3.93 EPS for the current fiscal year.

S&T Bancorp announced that its board has authorized a stock buyback plan on Thursday, July 23rd that permits the company to buyback $100.00 million in outstanding shares. This buyback authorization permits the financial services provider to purchase up to 5.6% of its stock through open market purchases. Stock buyback plans are typically a sign that the company's leadership believes its stock is undervalued.

S&T Bancorp Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, August 27th. Shareholders of record on Tuesday, August 18th were given a dividend of $0.37 per share. This represents a $1.48 annualized dividend and a yield of 2.9%. The ex-dividend date of this dividend was Tuesday, August 18th. S&T Bancorp's payout ratio is presently 39.36%.

Insider Activity at S&T Bancorp

In related news, Director William Hieb sold 11,979 shares of the business's stock in a transaction dated Wednesday, August 12th. The shares were sold at an average price of $51.34, for a total transaction of $615,001.86. Following the sale, the director owned 17,344 shares of the company's stock, valued at $890,440.96. The trade was a 40.85% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Company insiders own 1.23% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Public Employees Retirement System of Ohio bought a new position in shares of S&T Bancorp during the 2nd quarter valued at $29,000. EverSource Wealth Advisors LLC lifted its position in S&T Bancorp by 5,223.5% during the second quarter. EverSource Wealth Advisors LLC now owns 905 shares of the financial services provider's stock valued at $34,000 after purchasing an additional 888 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in S&T Bancorp during the second quarter valued at $37,000. Smithfield Trust Co bought a new stake in S&T Bancorp during the fourth quarter valued at about $40,000. Finally, CIBC Private Wealth Group LLC bought a new stake in S&T Bancorp during the third quarter valued at about $50,000. Institutional investors own 65.22% of the company's stock.

About S&T Bancorp

S&T Bancorp, Inc is a bank holding company headquartered in Indiana, Pennsylvania, serving as the parent of S&T Bank. Established as a banking organization in 1902 with the holding company formation following in the early 1980s, S&T Bancorp has built its reputation on delivering community-oriented financial services. The company operates under the NASDAQ ticker STBA, maintaining a focus on personalized banking solutions and local decision-making.

The company's main business activities encompass a full suite of retail and commercial banking products.

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