Enterprise Financial Services Corporation (NASDAQ:EFSC) Raises Dividend to $0.35 Per Share

Key Points

• Enterprise Financial Services Corp. raised its quarterly dividend to $0.35 per share, up from $0.34, a 2.9% increase. The dividend is payable on September 30 to shareholders of record on September 15, and the stock’s annualized yield is about 2.1%.
• The bank has increased its dividend annually for 11 straight years, and its payout ratio remains relatively low at 24.9%. Analysts expect earnings to continue covering the dividend comfortably, with a projected future payout ratio of 22.9%.
• EFSC recently reported mixed quarterly results, posting $1.13 EPS versus the $1.33 consensus estimate and revenue below expectations. Despite that, Wall Street’s overall view is Moderate Buy, with a consensus price target of $68.50.

Enterprise Financial Services Corporation (NASDAQ:EFSC - Get Free Report) declared a quarterly dividend on Wednesday, July 22nd. Investors of record on Tuesday, September 15th will be given a dividend of 0.35 per share by the bank on Wednesday, September 30th. This represents a c) dividend on an annualized basis and a yield of 2.1%. The ex-dividend date is Tuesday, September 15th. This is a 2.9% increase from Enterprise Financial Services's previous quarterly dividend of $0.34.

Enterprise Financial Services has increased its dividend payment by an average of 0.1%per year over the last three years and has raised its dividend annually for the last 11 consecutive years. Enterprise Financial Services has a payout ratio of 24.9% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Enterprise Financial Services to earn $5.95 per share next year, which means the company should continue to be able to cover its $1.36 annual dividend with an expected future payout ratio of 22.9%.

Enterprise Financial Services Price Performance

Shares of EFSC opened at $65.68 on Thursday. The business's 50-day moving average is $63.30 and its 200-day moving average is $59.16. The company has a market capitalization of $2.40 billion, a price-to-earnings ratio of 12.39 and a beta of 0.79. Enterprise Financial Services has a fifty-two week low of $51.18 and a fifty-two week high of $68.73. The company has a debt-to-equity ratio of 0.21, a current ratio of 0.84 and a quick ratio of 0.84.

Enterprise Financial Services (NASDAQ:EFSC - Get Free Report) last announced its quarterly earnings results on Wednesday, July 22nd. The bank reported $1.13 EPS for the quarter, missing the consensus estimate of $1.33 by ($0.20). The firm had revenue of $182.19 million during the quarter, compared to the consensus estimate of $189.15 million. Enterprise Financial Services had a net margin of 19.81% and a return on equity of 10.35%. Equities research analysts expect that Enterprise Financial Services will post 5.57 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on EFSC. Wall Street Zen downgraded Enterprise Financial Services from a "hold" rating to a "sell" rating in a research note on Saturday, July 18th. Piper Sandler upped their price objective on Enterprise Financial Services from $64.00 to $67.00 and gave the company a "neutral" rating in a research note on Thursday, June 18th. Keefe, Bruyette & Woods lifted their price target on shares of Enterprise Financial Services from $66.00 to $67.00 and gave the company an "outperform" rating in a report on Friday, April 24th. Raymond James Financial raised their target price on Enterprise Financial Services from $65.00 to $72.00 and gave the company an "outperform" rating in a research note on Wednesday, July 1st. Finally, Weiss Ratings restated a "buy (b)" rating on shares of Enterprise Financial Services in a research report on Friday, July 10th. Four analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $68.50.

About Enterprise Financial Services

Enterprise Financial Services Corp. NASDAQ: EFSC is a bank holding company headquartered in Clayton, Missouri, operating through its primary subsidiary, Enterprise Bank & Trust. The company provides a comprehensive range of banking and financial services to individuals, small- and mid-sized businesses, and institutional clients. Its capabilities encompass deposit products, lending solutions, mortgage banking, and treasury management, supported by a full suite of digital banking tools and personalized client service.

In its commercial banking segment, Enterprise Bank & Trust offers lines of credit, equipment financing, commercial real estate loans, construction lending and agriculture lending.

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