Punch & Associates Investment Management Inc. Purchases Shares of 778,006 First Interstate BancSystem, Inc. $FIBK

Key Points

• Punch & Associates acquired 778,006 shares of First Interstate BancSystem worth approximately $30 million, making up about 1.5% of its portfolio and 0.82% of FIBK’s outstanding shares. Overall, institutional investors own 88.71% of the company.
• First Interstate BancSystem reported quarterly earnings of $0.87 per share, beating the $0.69 consensus estimate, while revenue rose 6.4% year over year to $263.9 million. The company also maintains a quarterly dividend of $0.47 per share, representing a 5.1% annualized yield.
• Analyst sentiment remains cautious: FIBK has an average “Reduce” rating and a consensus price target of $36.83, below its reported trading price of $37.20. Recent analyst actions included downgrades and target-price cuts from Barclays and Wells Fargo.

Punch & Associates Investment Management Inc. acquired a new position in shares of First Interstate BancSystem, Inc. (NASDAQ:FIBK - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 778,006 shares of the financial services provider's stock, valued at approximately $30,000,000. First Interstate BancSystem makes up about 1.5% of Punch & Associates Investment Management Inc.'s portfolio, making the stock its 19th largest holding. Punch & Associates Investment Management Inc. owned approximately 0.82% of First Interstate BancSystem at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also made changes to their positions in the stock. BlackRock Inc. bought a new position in First Interstate BancSystem during the 2nd quarter worth about $529,533,000. Vanguard Group Inc. grew its holdings in shares of First Interstate BancSystem by 13.7% during the fourth quarter. Vanguard Group Inc. now owns 10,048,419 shares of the financial services provider's stock worth $347,675,000 after buying an additional 1,214,454 shares in the last quarter. Wellington Management Group LLP grew its holdings in shares of First Interstate BancSystem by 20.4% during the third quarter. Wellington Management Group LLP now owns 5,915,425 shares of the financial services provider's stock worth $188,525,000 after buying an additional 1,003,021 shares in the last quarter. Dimensional Fund Advisors LP raised its position in First Interstate BancSystem by 4.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 5,630,789 shares of the financial services provider's stock valued at $188,066,000 after buying an additional 231,405 shares during the last quarter. Finally, State Street Corp raised its position in First Interstate BancSystem by 29.7% in the 4th quarter. State Street Corp now owns 5,482,245 shares of the financial services provider's stock valued at $189,686,000 after buying an additional 1,254,321 shares during the last quarter. 88.71% of the stock is currently owned by institutional investors and hedge funds.

First Interstate BancSystem Trading Up 0.4%

NASDAQ FIBK opened at $37.20 on Thursday. The company has a market cap of $3.55 billion, a PE ratio of 11.45 and a beta of 0.76. The company has a current ratio of 0.69, a quick ratio of 0.69 and a debt-to-equity ratio of 0.09. First Interstate BancSystem, Inc. has a 12 month low of $29.10 and a 12 month high of $40.60. The stock has a 50 day moving average of $38.28 and a 200-day moving average of $36.18.

First Interstate BancSystem (NASDAQ:FIBK - Get Free Report) last issued its earnings results on Thursday, July 23rd. The financial services provider reported $0.87 earnings per share for the quarter, topping analysts' consensus estimates of $0.69 by $0.18. First Interstate BancSystem had a net margin of 23.63% and a return on equity of 9.55%. The business had revenue of $263.90 million for the quarter, compared to the consensus estimate of $249.32 million. During the same period in the previous year, the company earned $0.69 earnings per share. The firm's revenue for the quarter was up 6.4% on a year-over-year basis. On average, equities research analysts anticipate that First Interstate BancSystem, Inc. will post 2.84 EPS for the current fiscal year.

First Interstate BancSystem Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 14th. Stockholders of record on Tuesday, August 4th were paid a dividend of $0.47 per share. The ex-dividend date was Tuesday, August 4th. This represents a $1.88 annualized dividend and a dividend yield of 5.1%. First Interstate BancSystem's payout ratio is currently 57.85%.

Analysts Set New Price Targets

FIBK has been the subject of a number of recent research reports. Barclays downgraded First Interstate BancSystem from an "equal weight" rating to an "underweight" rating and reduced their price target for the stock from $38.00 to $37.00 in a research report on Monday, August 3rd. Wells Fargo & Company reissued an "underweight" rating and issued a $34.00 price objective (down from $36.00) on shares of First Interstate BancSystem in a research report on Monday, August 10th. Keefe, Bruyette & Woods restated a "market perform" rating and set a $37.00 target price (down from $38.00) on shares of First Interstate BancSystem in a report on Friday, May 1st. Wall Street Zen upgraded shares of First Interstate BancSystem from a "strong sell" rating to a "sell" rating in a research note on Monday, June 22nd. Finally, Weiss Ratings raised shares of First Interstate BancSystem from a "buy (b-)" rating to a "buy (b)" rating in a research report on Wednesday, July 1st. Two research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Reduce" and a consensus target price of $36.83.

Insider Activity

In other news, major shareholder Julie A. Scott sold 15,000 shares of the company's stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $35.97, for a total value of $539,550.00. Following the sale, the insider directly owned 488,359 shares of the company's stock, valued at approximately $17,566,273.23. This represents a 2.98% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, major shareholder Jonathan R. Scott sold 12,892 shares of the firm's stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $35.58, for a total transaction of $458,697.36. Following the completion of the sale, the insider owned 866,628 shares of the company's stock, valued at $30,834,624.24. This trade represents a 1.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 32,392 shares of company stock worth $1,161,552 over the last 90 days. 8.00% of the stock is owned by company insiders.

First Interstate BancSystem Profile

First Interstate BancSystem, Inc is a bank holding company headquartered in Billings, Montana. Through its principal subsidiary, First Interstate Bank, the company provides a full range of commercial and consumer banking services. Its offerings include business lending, commercial real estate financing, agricultural loans, residential mortgage products, and deposit accounts suitable for individuals, small businesses, and large corporations.

The company traces its roots back to the late 1960s and has grown through a combination of organic expansion and strategic acquisitions across the Western United States.

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