DA Davidson Has Weak Outlook for SouthState FY2025 Earnings

Key Points

• DA Davidson has revised its FY2025 earnings per share estimate for SouthState down to $8.31, slightly lower than the previous estimate of $8.35, while maintaining a "Buy" rating and a price target of $117.00.
• SouthState reported a strong quarterly earnings result with an EPS of $2.30, exceeding expectations of $1.98, and a significant revenue of $840.50 million compared to the anticipated $645.12 million.
• The company recently increased its quarterly dividend to $0.60 per share, up from $0.54, representing an annualized yield of 2.4%.

SouthState Co. (NASDAQ:SSB - Free Report) - Equities research analysts at DA Davidson decreased their FY2025 earnings per share estimates for SouthState in a note issued to investors on Monday, September 29th. DA Davidson analyst G. Tenner now forecasts that the bank will earn $8.31 per share for the year, down from their previous estimate of $8.35. DA Davidson has a "Buy" rating and a $117.00 price target on the stock. The consensus estimate for SouthState's current full-year earnings is $8.12 per share.

SouthState (NASDAQ:SSB - Get Free Report) last issued its quarterly earnings results on Thursday, July 24th. The bank reported $2.30 EPS for the quarter, beating the consensus estimate of $1.98 by $0.32. SouthState had a return on equity of 9.62% and a net margin of 22.38%.The firm had revenue of $840.50 million during the quarter, compared to analysts' expectations of $645.12 million. During the same period in the prior year, the firm posted $1.74 earnings per share.

Several other research analysts have also recently commented on the company. National Bankshares set a $127.00 price target on SouthState in a research report on Wednesday, September 24th. Cowen assumed coverage on SouthState in a research report on Wednesday, September 24th. They issued a "buy" rating for the company. Hovde Group raised their price objective on SouthState from $97.00 to $105.00 and gave the company a "market perform" rating in a research report on Friday, July 25th. TD Cowen assumed coverage on SouthState in a research report on Thursday, September 25th. They issued a "buy" rating and a $127.00 price objective for the company. Finally, Citigroup reaffirmed a "buy" rating and issued a $117.00 price objective (up from $113.00) on shares of SouthState in a research report on Monday, July 28th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Buy" and an average price target of $117.08.

SouthState Stock Performance

Shares of NASDAQ SSB opened at $98.89 on Wednesday. The stock has a 50 day moving average price of $98.67 and a 200 day moving average price of $92.95. SouthState has a 52 week low of $77.74 and a 52 week high of $114.26. The company has a debt-to-equity ratio of 0.07, a quick ratio of 0.91 and a current ratio of 0.91. The stock has a market capitalization of $10.01 billion, a PE ratio of 14.21 and a beta of 0.74.

SouthState Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 15th. Shareholders of record on Friday, August 8th were paid a dividend of $0.60 per share. This is a boost from SouthState's previous quarterly dividend of $0.54. The ex-dividend date was Friday, August 8th. This represents a $2.40 dividend on an annualized basis and a yield of 2.4%. SouthState's dividend payout ratio is 35.77%.

Insiders Place Their Bets

In other SouthState news, Director G Stacy Smith purchased 2,500 shares of the firm's stock in a transaction dated Friday, August 1st. The shares were bought at an average price of $92.30 per share, for a total transaction of $230,750.00. Following the purchase, the director owned 39,546 shares in the company, valued at approximately $3,650,095.80. This trade represents a 6.75% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Daniel E. Bockhorst sold 5,000 shares of SouthState stock in a transaction on Friday, August 22nd. The shares were sold at an average price of $99.60, for a total value of $498,000.00. Following the completion of the transaction, the insider owned 31,785 shares in the company, valued at approximately $3,165,786. The trade was a 13.59% decrease in their position. The disclosure for this sale can be found here. Insiders have purchased a total of 8,338 shares of company stock worth $786,321 in the last 90 days. Company insiders own 1.70% of the company's stock.

Hedge Funds Weigh In On SouthState

Hedge funds and other institutional investors have recently modified their holdings of the business. Rise Advisors LLC bought a new position in shares of SouthState in the 1st quarter valued at $33,000. Steward Partners Investment Advisory LLC acquired a new position in shares of SouthState in the 2nd quarter valued at about $34,000. Flaharty Asset Management LLC acquired a new position in SouthState during the 1st quarter worth approximately $45,000. TFC Financial Management Inc. raised its stake in SouthState by 49,800.0% during the 2nd quarter. TFC Financial Management Inc. now owns 499 shares of the bank's stock worth $46,000 after buying an additional 498 shares during the period. Finally, Versant Capital Management Inc raised its stake in SouthState by 577.4% during the 1st quarter. Versant Capital Management Inc now owns 569 shares of the bank's stock worth $53,000 after buying an additional 485 shares during the period. Institutional investors own 89.76% of the company's stock.

About SouthState

SouthState Corporation operates as the bank holding company for SouthState Bank, National Association that provides a range of banking services and products to individuals and companies. It offers checking accounts, savings deposits, interest-bearing transaction accounts, certificates of deposits, money market accounts, and other time deposits, as well as bond accounting, asset/liability consulting related activities, and other clearing and corporate checking account services.

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