Enterprise Financial Services (NASDAQ:EFSC) Announces Earnings Results

Key Points

• EPS beat but big revenue miss: Enterprise reported $1.31 EPS, topping estimates by $0.01, while revenue came in at $113.74M versus a $174.02M consensus, indicating a significant sales shortfall despite the modest earnings beat.
• Dividend increase: The quarterly dividend was raised to $0.33 ($1.32 annualized), implying a 2.3% yield and a payout ratio of about 24.9%.
• Analyst upgrades and heavy institutional ownership: Analysts have generally upgraded the stock to a "Moderate Buy" with a $66 consensus target, and institutional investors own 72.21% of shares, with notable stake increases by Wellington and Millennium.

Enterprise Financial Services (NASDAQ:EFSC - Get Free Report) released its earnings results on Wednesday. The bank reported $1.31 earnings per share for the quarter, topping analysts' consensus estimates of $1.30 by $0.01, FiscalAI reports. The firm had revenue of $113.74 million during the quarter, compared to analyst estimates of $174.02 million. Enterprise Financial Services had a net margin of 20.15% and a return on equity of 10.57%.

Enterprise Financial Services Stock Performance

Shares of EFSC traded down $0.04 during trading hours on Wednesday, reaching $57.49. 120,568 shares of the company traded hands, compared to its average volume of 229,164. The stock's fifty day moving average is $56.54 and its 200 day moving average is $55.77. The stock has a market cap of $2.12 billion, a P/E ratio of 10.83 and a beta of 0.79. The company has a debt-to-equity ratio of 0.24, a quick ratio of 0.84 and a current ratio of 0.84. Enterprise Financial Services has a 1-year low of $48.97 and a 1-year high of $62.30.

Enterprise Financial Services Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Friday, March 13th were given a dividend of $0.33 per share. This is an increase from Enterprise Financial Services's previous quarterly dividend of $0.32. This represents a $1.32 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date of this dividend was Friday, March 13th. Enterprise Financial Services's dividend payout ratio (DPR) is currently 24.86%.

Analysts Set New Price Targets

EFSC has been the subject of a number of research analyst reports. DA Davidson boosted their target price on shares of Enterprise Financial Services from $66.00 to $68.00 and gave the stock a "buy" rating in a research report on Wednesday, January 28th. Weiss Ratings raised shares of Enterprise Financial Services from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Monday, February 23rd. Finally, Piper Sandler boosted their target price on shares of Enterprise Financial Services from $62.00 to $64.00 and gave the stock a "neutral" rating in a research report on Wednesday, January 28th. Three analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $66.00.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in EFSC. Wellington Management Group LLP raised its position in shares of Enterprise Financial Services by 12.6% during the fourth quarter. Wellington Management Group LLP now owns 2,952,106 shares of the bank's stock valued at $159,414,000 after buying an additional 329,346 shares during the last quarter. Millennium Management LLC increased its stake in Enterprise Financial Services by 2,090.9% in the fourth quarter. Millennium Management LLC now owns 105,077 shares of the bank's stock valued at $5,674,000 after acquiring an additional 100,281 shares during the period. First Trust Advisors LP increased its stake in Enterprise Financial Services by 6.0% in the fourth quarter. First Trust Advisors LP now owns 1,471,244 shares of the bank's stock valued at $79,447,000 after acquiring an additional 83,626 shares during the period. Campbell & CO Investment Adviser LLC bought a new stake in Enterprise Financial Services in the fourth quarter valued at about $3,168,000. Finally, Bank of America Corp DE increased its stake in Enterprise Financial Services by 18.5% in the third quarter. Bank of America Corp DE now owns 363,587 shares of the bank's stock valued at $21,081,000 after acquiring an additional 56,884 shares during the period. Institutional investors and hedge funds own 72.21% of the company's stock.

Enterprise Financial Services Company Profile

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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