Financial Institutions, Inc. (NASDAQ:FISI) Plans $0.32 Quarterly Dividend

Key Points

• Financial Institutions declared a quarterly dividend of $0.32 per share, payable October 2 to shareholders of record as of September 15. The dividend implies a 3.1% annualized yield and is supported by a 33.7% payout ratio.
• The bank reported quarterly EPS of $1.04, beating analysts’ $0.93 estimate, while revenue of $64.31 million also exceeded expectations.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $45, compared with the stock’s reported $40.80 price.

Financial Institutions, Inc. (NASDAQ:FISI - Get Free Report) declared a quarterly dividend on Wednesday, August 26th. Shareholders of record on Tuesday, September 15th will be paid a dividend of 0.32 per share by the bank on Friday, October 2nd. This represents a c) dividend on an annualized basis and a yield of 3.1%. The ex-dividend date of this dividend is Tuesday, September 15th.

Financial Institutions has raised its dividend by an average of 0.0%per year over the last three years and has raised its dividend every year for the last 1 years. Financial Institutions has a payout ratio of 33.7% meaning its dividend is sufficiently covered by earnings. Research analysts expect Financial Institutions to earn $4.35 per share next year, which means the company should continue to be able to cover its $1.28 annual dividend with an expected future payout ratio of 29.4%.

Financial Institutions Price Performance

NASDAQ:FISI opened at $40.80 on Thursday. Financial Institutions has a 12-month low of $25.61 and a 12-month high of $42.97. The firm has a market capitalization of $804.17 million, a price-to-earnings ratio of 10.12 and a beta of 0.63. The stock's 50 day moving average price is $40.09 and its two-hundred day moving average price is $36.04. The company has a quick ratio of 0.88, a current ratio of 0.88 and a debt-to-equity ratio of 0.13.

Financial Institutions (NASDAQ:FISI - Get Free Report) last issued its earnings results on Thursday, July 23rd. The bank reported $1.04 EPS for the quarter, topping the consensus estimate of $0.93 by $0.11. Financial Institutions had a return on equity of 13.45% and a net margin of 21.78%.The company had revenue of $64.31 million during the quarter, compared to the consensus estimate of $63.54 million. On average, analysts anticipate that Financial Institutions will post 4.21 earnings per share for the current year.

Wall Street Analysts Forecast Growth

Several research firms have commented on FISI. Piper Sandler reiterated a "neutral" rating and issued a $45.00 price objective (up from $38.00) on shares of Financial Institutions in a report on Monday, August 3rd. Wall Street Zen cut shares of Financial Institutions from a "buy" rating to a "hold" rating in a research note on Saturday, May 9th. Keefe, Bruyette & Woods lifted their target price on shares of Financial Institutions from $42.00 to $45.00 and gave the stock an "outperform" rating in a report on Monday, July 27th. Finally, Weiss Ratings reiterated a "buy (b)" rating on shares of Financial Institutions in a research note on Monday, July 6th. Two investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $45.00.

About Financial Institutions

Financial Institutions, Inc NASDAQ: FISI is a non-diversified, closed-end management investment company that seeks to provide tax-advantaged income to shareholders. The company invests primarily in investment-grade municipal obligations issued by states, municipalities and government agencies across the United States. By focusing on high-credit-quality bonds, Financial Institutions aims to deliver current income that is exempt from federal income tax.

In constructing its portfolio, the company may also utilize money market instruments and repurchase agreements to manage liquidity and facilitate efficient settlement.

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