BlackRock Inc. Acquires New Stake in Southside Bancshares, Inc. $SBSI

Key Points

• BlackRock acquired 4.27 million Southside Bancshares shares worth approximately $150.3 million, giving it a 14.33% stake. Institutional investors collectively own 55.70% of the company.
• Southside Bancshares reported quarterly EPS of $0.90, exceeding the $0.86 consensus estimate, although revenue of $71.34 million came in below expectations.
• The company raised its quarterly dividend to $0.37 per share, representing a $1.48 annualized payout and a 4.6% yield. Analysts maintain a consensus “Hold” rating with an average price target of $34.75.

BlackRock Inc. bought a new position in shares of Southside Bancshares, Inc. (NYSE:SBSI - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund bought 4,271,247 shares of the company's stock, valued at approximately $150,305,000. BlackRock Inc. owned approximately 14.33% of Southside Bancshares as of its most recent SEC filing.

Other institutional investors have also added to or reduced their stakes in the company. Vanguard Group Inc. grew its stake in Southside Bancshares by 1.6% in the 4th quarter. Vanguard Group Inc. now owns 2,031,944 shares of the company's stock worth $61,751,000 after buying an additional 31,575 shares in the last quarter. Dimensional Fund Advisors LP lifted its holdings in shares of Southside Bancshares by 0.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,384,745 shares of the company's stock worth $43,051,000 after acquiring an additional 7,496 shares during the last quarter. State Street Corp lifted its holdings in shares of Southside Bancshares by 0.6% during the 4th quarter. State Street Corp now owns 1,308,609 shares of the company's stock worth $39,769,000 after acquiring an additional 7,706 shares during the last quarter. Charles Schwab Investment Management Inc. grew its position in Southside Bancshares by 10.1% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 405,877 shares of the company's stock worth $12,335,000 after acquiring an additional 37,253 shares in the last quarter. Finally, Goldman Sachs Group Inc. grew its position in Southside Bancshares by 11.6% in the fourth quarter. Goldman Sachs Group Inc. now owns 351,713 shares of the company's stock worth $10,689,000 after acquiring an additional 36,675 shares in the last quarter. 55.70% of the stock is currently owned by institutional investors.

Southside Bancshares Price Performance

Shares of Southside Bancshares stock opened at $31.88 on Friday. The company's 50 day moving average price is $33.52 and its 200-day moving average price is $32.72. Southside Bancshares, Inc. has a 52-week low of $26.32 and a 52-week high of $36.20. The stock has a market capitalization of $950.34 million, a price-to-earnings ratio of 12.55 and a beta of 0.60. The company has a debt-to-equity ratio of 0.71, a quick ratio of 0.74 and a current ratio of 0.74.

Southside Bancshares (NYSE:SBSI - Get Free Report) last issued its quarterly earnings data on Friday, July 24th. The company reported $0.90 EPS for the quarter, beating the consensus estimate of $0.86 by $0.04. Southside Bancshares had a net margin of 16.70% and a return on equity of 11.16%. The firm had revenue of $71.34 million during the quarter, compared to the consensus estimate of $75.00 million. Equities research analysts forecast that Southside Bancshares, Inc. will post 3.24 EPS for the current year.

Southside Bancshares Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 3rd. Shareholders of record on Thursday, August 20th will be issued a $0.37 dividend. This is a boost from Southside Bancshares's previous quarterly dividend of $0.36. The ex-dividend date is Thursday, August 20th. This represents a $1.48 annualized dividend and a yield of 4.6%. Southside Bancshares's dividend payout ratio (DPR) is currently 58.27%.

Wall Street Analyst Weigh In

SBSI has been the subject of several research analyst reports. Stephens set a $37.00 price target on Southside Bancshares in a research note on Monday, July 27th. Keefe, Bruyette & Woods decreased their price objective on Southside Bancshares from $37.00 to $35.00 and set a "market perform" rating on the stock in a report on Monday, August 3rd. Piper Sandler decreased their price objective on Southside Bancshares from $37.00 to $33.00 and set a "neutral" rating on the stock in a report on Monday, July 27th. Zacks Research downgraded Southside Bancshares from a "hold" rating to a "strong sell" rating in a research report on Tuesday, July 28th. Finally, Benchmark started coverage on Southside Bancshares in a research note on Wednesday, June 24th. They issued a "hold" rating for the company. One analyst has rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $34.75.

Southside Bancshares Company Profile

Southside Bancshares Inc is a bank holding company headquartered in Tyler, Texas. Through its subsidiary, Southside Bank, it provides a broad array of commercial and consumer banking services to individuals and businesses. The company's offerings include deposit products, loan facilities and treasury management solutions tailored to the needs of its clientele. Established in 1974, Southside Bancshares has grown its footprint across East and North Texas while maintaining a community banking focus.

In the commercial banking segment, the company extends financing for real estate development, construction projects, equipment purchases and working capital needs.

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