Financial Institutions (NASDAQ:FISI) Issues Quarterly Earnings Results

Key Points

• EPS beat: Financial Institutions reported Q earnings of $1.04 per share versus a $0.93 consensus while revenue was essentially in line at $62.67M; the firm posted a 12.62% ROE and a 19.81% net margin.
• Dividend raised to $0.32 quarterly (from $0.31), implying a $1.28 annual payout and a roughly 3.7% yield with a payout ratio of about 35.5%.
• Analysts have recently lifted ratings and targets (consensus a Moderate Buy), with an average price target of $37.00; shares traded at $34.15 (-0.1%) and the company has a market cap of $672M.

Financial Institutions (NASDAQ:FISI - Get Free Report) announced its earnings results on Thursday. The bank reported $1.04 earnings per share for the quarter, beating the consensus estimate of $0.93 by $0.11, FiscalAI reports. The firm had revenue of $62.67 million for the quarter, compared to the consensus estimate of $62.76 million. Financial Institutions had a return on equity of 12.62% and a net margin of 19.81%.

Financial Institutions Stock Down 0.1%

Shares of FISI stock traded down $0.02 on Thursday, reaching $34.15. 190,050 shares of the company's stock traded hands, compared to its average volume of 151,493. Financial Institutions has a 12-month low of $23.25 and a 12-month high of $35.67. The company has a debt-to-equity ratio of 0.32, a quick ratio of 0.89 and a current ratio of 0.89. The company has a market capitalization of $672.07 million, a P/E ratio of 9.46 and a beta of 0.63. The business's 50 day moving average price is $32.42 and its two-hundred day moving average price is $31.24.

Financial Institutions Increases Dividend

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

Analysts Set New Price Targets

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

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of FISI. Larson Financial Group LLC grew its holdings in shares of Financial Institutions by 3,150.0% during the third quarter. Larson Financial Group LLC now owns 1,170 shares of the bank's stock valued at $32,000 after buying an additional 1,134 shares in the last quarter. EverSource Wealth Advisors LLC grew its holdings in shares of Financial Institutions by 679.4% during the second quarter. EverSource Wealth Advisors LLC now owns 1,738 shares of the bank's stock valued at $45,000 after buying an additional 1,515 shares in the last quarter. Comerica Bank grew its holdings in shares of Financial Institutions by 39.8% during the third quarter. Comerica Bank now owns 1,647 shares of the bank's stock valued at $45,000 after buying an additional 469 shares in the last quarter. CANADA LIFE ASSURANCE Co grew its holdings 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 valued at $50,000 after buying an additional 497 shares in the last quarter. Finally, Advisory Services Network LLC purchased a new position in shares of Financial Institutions during the third quarter valued at $53,000. Hedge funds and other institutional investors own 60.45% of the company's stock.

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.

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