Financial Institutions (NASDAQ:FISI) Issues Earnings Results

Key Points

• Q1 earnings beat: Financial Institutions reported EPS of $1.04 versus the $0.92 consensus (beat of $0.12) while revenue was essentially flat at $62.67M versus $62.76M; net margin was 19.81% and ROE 12.62%.
• Dividend increase: The company raised its quarterly dividend to $0.32 ($1.28 annualized), yielding 3.7% and reflecting a payout ratio of 35.46%, up from the prior $0.31 quarterly payment.
• Valuation and sentiment: shares trade at a PE of 9.46 with a $672M market cap and a 12‑month range of $23.25–$35.67; analysts' consensus is a Moderate Buy with an average $37 price target and institutional investors hold about 60.45% of the stock.

Financial Institutions (NASDAQ:FISI - Get Free Report) issued its quarterly earnings data on Thursday. The bank reported $1.04 earnings per share for the quarter, topping the consensus estimate of $0.92 by $0.12, FiscalAI reports. Financial Institutions had a net margin of 19.81% and a return on equity of 12.62%. The business had revenue of $62.67 million during the quarter, compared to the consensus estimate of $62.76 million.

Financial Institutions Stock Performance

Shares of FISI opened at $34.15 on Friday. The company's 50 day simple moving average is $32.42 and its 200-day simple moving average is $31.26. The firm has a market cap of $672.07 million, a PE ratio of 9.46 and a beta of 0.63. Financial Institutions has a 12-month low of $23.25 and a 12-month high of $35.67. The company has a current ratio of 0.89, a quick ratio of 0.89 and a debt-to-equity ratio of 0.32.

Financial Institutions Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, April 2nd. Stockholders of record on Friday, March 13th were given a dividend of $0.32 per share. This represents a $1.28 dividend on an annualized basis and a dividend yield of 3.7%. This is a boost from Financial Institutions's previous quarterly dividend of $0.31. The ex-dividend date was Friday, March 13th. Financial Institutions's payout ratio is 35.46%.

Institutional Trading of Financial Institutions

A number of large investors have recently bought and sold shares of the business. Comerica Bank lifted its stake in shares of Financial Institutions by 39.8% in the 3rd quarter. Comerica Bank now owns 1,647 shares of the bank's stock worth $45,000 after acquiring an additional 469 shares during the period. CANADA LIFE ASSURANCE Co increased its stake in shares of Financial Institutions by 44.8% during the fourth quarter. CANADA LIFE ASSURANCE Co now owns 1,607 shares of the bank's stock worth $50,000 after acquiring an additional 497 shares during the period. Charles Schwab Investment Management Inc. increased its stake in shares of Financial Institutions by 0.5% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 168,746 shares of the bank's stock worth $5,260,000 after acquiring an additional 774 shares during the period. Creative Planning raised its holdings in Financial Institutions by 5.0% during the third quarter. Creative Planning now owns 17,922 shares of the bank's stock worth $487,000 after purchasing an additional 850 shares in the last quarter. Finally, Russell Investments Group Ltd. raised its holdings in Financial Institutions by 2.3% during the fourth quarter. Russell Investments Group Ltd. now owns 38,449 shares of the bank's stock worth $1,198,000 after purchasing an additional 872 shares in the last quarter. Institutional investors and hedge funds own 60.45% of the company's stock.

Analyst Ratings Changes

Several equities research analysts recently commented on FISI shares. Piper Sandler reiterated a "neutral" rating and set a $36.00 price target (up from $34.00) on shares of Financial Institutions in a research note on Monday, February 2nd. Weiss Ratings upgraded shares of Financial Institutions from a "hold (c-)" rating to a "buy (b-)" rating in a research note on Thursday, March 12th. Keefe, Bruyette & Woods raised their price objective on Financial Institutions from $35.00 to $38.00 and gave the stock an "outperform" rating in a report on Monday, February 2nd. Finally, Wall Street Zen raised Financial Institutions from a "hold" rating to a "buy" rating in a report on Saturday, February 14th. Two research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $37.00.

About Financial Institutions

Financial Institutions, Inc NASDAQ: FISI is a non-diversified, closed-end management investment company that seeks to provide tax-advantaged income to shareholders. The company invests primarily in investment-grade municipal obligations issued by states, municipalities and government agencies across the United States. By focusing on high-credit-quality bonds, Financial Institutions aims to deliver current income that is exempt from federal income tax.

In constructing its portfolio, the company may also utilize money market instruments and repurchase agreements to manage liquidity and facilitate efficient settlement.