South Plains Financial, Inc. (NASDAQ:SPFI) Raises Dividend to $0.19 Per Share

Key Points

• South Plains Financial raised its quarterly dividend 5.6% to $0.19 per share, payable November 16 to shareholders of record November 2. The annualized dividend is $0.76, representing a 1.7% yield.
• The dividend appears well covered, with a current payout ratio of 21.4%; analysts expect next year’s earnings to support an estimated payout ratio of 17.3%. The company also reported quarterly EPS of $1.06, beating estimates by $0.07.
• Insiders sold 260,000 shares worth approximately $11.6 million over the past three months, while institutional investors and hedge funds own 54.95% of the company.

South Plains Financial, Inc. (NASDAQ:SPFI - Get Free Report) declared a quarterly dividend on Thursday, October 22nd. Shareholders of record on Monday, November 2nd will be paid a dividend of $0.19 per share on Monday, November 16th. This represents a $0.76 dividend on an annualized basis and a yield of 1.7%. The ex-dividend date is Monday, November 2nd. This is a 5.6% increase from South Plains Financial's previous quarterly dividend of $0.18.

South Plains Financial has raised its dividend payment by an average of 0.3% per year over the last three years and has raised its dividend every year for the last 5 years. South Plains Financial has a payout ratio of 21.4% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect South Plains Financial to earn $4.16 per share next year, which means the company should continue to be able to cover its $0.72 annual dividend with an expected future payout ratio of 17.3%.

South Plains Financial Stock Performance

Shares of NASDAQ SPFI opened at $43.93 on Friday. South Plains Financial has a 1 year low of $35.34 and a 1 year high of $46.94. The firm has a market cap of $827.64 million, a P/E ratio of 11.83 and a beta of 0.49. The stock has a fifty day moving average price of $43.71 and a two-hundred day moving average price of $42.94. The company has a debt-to-equity ratio of 0.10, a quick ratio of 0.96 and a current ratio of 0.97.

South Plains Financial (NASDAQ:SPFI - Get Free Report) last posted its quarterly earnings data on Thursday, October 22nd. The company reported $1.06 EPS for the quarter, topping analysts' consensus estimates of $0.99 by $0.07. The company had revenue of $65.27 million for the quarter, compared to the consensus estimate of $65.22 million. South Plains Financial had a return on equity of 12.36% and a net margin of 20.79%. Research analysts forecast that South Plains Financial will post 3.77 EPS for the current fiscal year.

Insider Transactions at South Plains Financial

In related news, Director James D. Stein sold 100,000 shares of the company's stock in a transaction that occurred on 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 in the company, valued at approximately $10,817,518.88. This represents a 29.17% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Richard D. Campbell sold 132,714 shares of the firm's stock in a transaction that occurred 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 completion of the transaction, the director directly owned 1,412,255 shares of the company's stock, valued at $63,198,411.25. This represents a 8.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 260,000 shares of company stock worth $11,624,642 in the last three months. 24.29% of the stock is currently owned by company insiders.

Institutional Trading of South Plains Financial

Several large investors have recently added to or reduced their stakes in SPFI. Sequoia Financial Advisors LLC purchased a new position in South Plains Financial during the 2nd quarter valued at about $204,000. Tidal Investments LLC purchased a new stake in shares of South Plains Financial in the second quarter worth approximately $562,000. Squarepoint Ops LLC acquired a new stake in shares of South Plains Financial during the second quarter worth approximately $421,000. Corient Private Wealth LP acquired a new stake in shares of South Plains Financial during the second quarter worth approximately $3,346,000. Finally, HighTower Advisors LLC acquired a new stake in shares of South Plains Financial during the second quarter worth approximately $481,000. 54.95% of the stock is owned by institutional investors and hedge funds.

South Plains Financial Company Profile

South Plains Financial, Inc is a bank holding company headquartered in Lubbock, Texas. Through its principal subsidiary, City Bank, the company provides banking and financial services to individuals, businesses, agricultural customers and other organizations.

City Bank offers a range of products and services, including checking and savings accounts, certificates of deposit, consumer loans, commercial and industrial lending, agricultural loans, real estate financing, mortgage lending, wealth management and treasury management services.

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