Citigroup Inc. Reduces Stake in Provident Financial Services, Inc $PFS

Key Points

• Citigroup cut its stake by 28.7% in Provident Financial Services during the third quarter, selling 81,438 shares and leaving it with 202,293 shares worth about $3.9 million (roughly 0.15% of the company).
• Provident beat quarterly expectations with $0.64 EPS (vs. $0.56 est.) and 9.6% revenue growth to $225.03 million, and it returned capital to shareholders via a $0.24 quarterly dividend (4.5% yield) and a $2.81 million share buyback authorization.
• Analyst sentiment is cautiously positive — the consensus rating is a “Moderate Buy” with a consensus price target near $23.90 and several firms setting targets around $25.00.

Citigroup Inc. reduced its stake in shares of Provident Financial Services, Inc (NYSE:PFS - Free Report) by 28.7% during the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 202,293 shares of the savings and loans company's stock after selling 81,438 shares during the quarter. Citigroup Inc. owned about 0.15% of Provident Financial Services worth $3,900,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Salomon & Ludwin LLC purchased a new position in shares of Provident Financial Services in the 3rd quarter worth approximately $26,000. EverSource Wealth Advisors LLC lifted its position in Provident Financial Services by 358.0% in the second quarter. EverSource Wealth Advisors LLC now owns 1,548 shares of the savings and loans company's stock worth $27,000 after buying an additional 1,210 shares during the last quarter. GAMMA Investing LLC boosted its stake in Provident Financial Services by 45.0% during the third quarter. GAMMA Investing LLC now owns 1,767 shares of the savings and loans company's stock worth $34,000 after buying an additional 548 shares during the period. Hantz Financial Services Inc. increased its position in Provident Financial Services by 633.8% during the second quarter. Hantz Financial Services Inc. now owns 2,040 shares of the savings and loans company's stock valued at $36,000 after acquiring an additional 1,762 shares during the last quarter. Finally, Hillsdale Investment Management Inc. purchased a new stake in shares of Provident Financial Services in the second quarter valued at $39,000. 71.97% of the stock is currently owned by hedge funds and other institutional investors.

Provident Financial Services Trading Up 0.7%

Shares of NYSE PFS opened at $21.57 on Thursday. Provident Financial Services, Inc has a twelve month low of $14.34 and a twelve month high of $23.98. The firm has a market cap of $2.82 billion, a PE ratio of 9.67 and a beta of 0.86. The business has a fifty day simple moving average of $21.46 and a two-hundred day simple moving average of $20.12. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 0.90.

Provident Financial Services (NYSE:PFS - Get Free Report) last announced its quarterly earnings results on Wednesday, January 28th. The savings and loans company reported $0.64 EPS for the quarter, beating the consensus estimate of $0.56 by $0.08. Provident Financial Services had a return on equity of 10.69% and a net margin of 21.06%.The firm had revenue of $225.03 million for the quarter, compared to analyst estimates of $224.08 million. During the same quarter last year, the firm posted $0.37 earnings per share. The business's revenue for the quarter was up 9.6% on a year-over-year basis. Analysts expect that Provident Financial Services, Inc will post 2.14 earnings per share for the current fiscal year.

Provident Financial Services Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, February 27th. Stockholders of record on Friday, February 13th were paid a dividend of $0.24 per share. The ex-dividend date was Friday, February 13th. This represents a $0.96 dividend on an annualized basis and a dividend yield of 4.5%. Provident Financial Services's dividend payout ratio (DPR) is currently 43.05%.

Provident Financial Services announced that its Board of Directors has initiated a stock repurchase plan on Monday, January 26th that authorizes the company to buyback $2.81 million in outstanding shares. This buyback authorization authorizes the savings and loans company to reacquire up to 0.1% of its shares through open market purchases. Shares buyback plans are often a sign that the company's management believes its shares are undervalued.

Analyst Upgrades and Downgrades

A number of research firms recently commented on PFS. DA Davidson initiated coverage on shares of Provident Financial Services in a research note on Wednesday, February 25th. They set a "neutral" rating and a $25.00 price target for the company. Weiss Ratings upgraded Provident Financial Services from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, February 26th. Keefe, Bruyette & Woods increased their price target on Provident Financial Services from $23.00 to $25.00 and gave the stock an "outperform" rating in a report on Thursday, January 29th. Finally, Royal Bank Of Canada set a $25.00 price target on Provident Financial Services in a research note on Thursday, January 29th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, Provident Financial Services presently has a consensus rating of "Moderate Buy" and a consensus price target of $23.90.

Provident Financial Services Profile

Provident Financial Services, Inc is the bank holding company for Provident Bank, a regional commercial bank headquartered in Jersey City, New Jersey. The company operates a network of full-service branches across New Jersey, the New York metropolitan area and eastern Pennsylvania, offering a range of personal and business banking solutions.

Its core products and services include checking and savings accounts, consumer and residential mortgage loans, commercial real estate financing and small-business lending.

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