Financial Institutions (NASDAQ:FISI) Reaches New 12-Month High After Better-Than-Expected Earnings

Key Points

• Financial Institutions (NASDAQ:FISI) hit a new 52-week high after reporting better-than-expected quarterly earnings, with EPS of $1.04 versus estimates of $0.93 and revenue of $64.31 million topping forecasts.
• The stock traded as high as $40.85, up from the prior close of $38.72, as investors reacted positively to the earnings beat and improved momentum.
• The company also announced a quarterly dividend of $0.32 per share, equal to a 3.1% yield, while analysts currently rate the stock a Moderate Buy with an average price target of $37.00.

Financial Institutions, Inc. (NASDAQ:FISI - Get Free Report)'s share price hit a new 52-week high during mid-day trading on Friday following a better than expected earnings announcement. The stock traded as high as $40.85 and last traded at $40.7690, with a volume of 138599 shares trading hands. The stock had previously closed at $38.72.

The bank reported $1.04 EPS for the quarter, topping analysts' consensus estimates of $0.93 by $0.11. Financial Institutions had a net margin of 20.85% and a return on equity of 13.08%. The business had revenue of $64.31 million during the quarter, compared to analysts' expectations of $63.54 million.

Financial Institutions Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, July 2nd. Shareholders of record on Friday, June 12th were paid a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a yield of 3.1%. The ex-dividend date was Friday, June 12th. Financial Institutions's payout ratio is 33.33%.

Wall Street Analyst Weigh In

A number of brokerages have commented on FISI. Weiss Ratings reissued a "buy (b)" rating on shares of Financial Institutions in a report on Monday, July 6th. Wall Street Zen cut Financial Institutions from a "buy" rating to a "hold" rating in a research report on Saturday, May 9th. Two research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $37.00.

Institutional Trading of Financial Institutions

Hedge funds have recently made changes to their positions in the company. Royal Bank of Canada increased its stake in Financial Institutions by 31.6% during the first quarter. Royal Bank of Canada now owns 1,290 shares of the bank's stock worth $40,000 after purchasing an additional 310 shares during the period. Comerica Bank boosted its stake in shares of Financial Institutions by 39.8% in the third quarter. Comerica Bank now owns 1,647 shares of the bank's stock valued at $45,000 after purchasing an additional 469 shares during the period. CANADA LIFE ASSURANCE Co boosted its stake in shares of Financial Institutions by 44.8% in the fourth quarter. CANADA LIFE ASSURANCE Co now owns 1,607 shares of the bank's stock valued at $50,000 after purchasing an additional 497 shares during the period. Charles Schwab Investment Management Inc. grew its holdings in shares of Financial Institutions by 0.5% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 168,746 shares of the bank's stock valued at $5,260,000 after purchasing an additional 774 shares in the last quarter. Finally, Creative Planning grew its holdings in shares of Financial Institutions by 5.0% in the third quarter. Creative Planning now owns 17,922 shares of the bank's stock valued at $487,000 after purchasing an additional 850 shares in the last quarter. Hedge funds and other institutional investors own 60.45% of the company's stock.

Financial Institutions Stock Performance

The firm's 50 day moving average is $37.55 and its two-hundred day moving average is $34.51. The stock has a market capitalization of $804.43 million, a PE ratio of 10.64 and a beta of 0.63. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.86 and a current ratio of 0.86.

Financial Institutions Company Profile

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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