Financial Institutions (NASDAQ:FISI) Stock Price Up 8.4% Following Earnings Beat

Key Points

• Financial Institutions, Inc. saw its stock price increase by 8.4% after reporting quarterly earnings of $0.99 EPS, surpassing expectations of $0.88.
• The company announced a quarterly dividend of $0.31, representing an annualized yield of 4.3%, despite having a negative dividend payout ratio of -81.58%.
• Financial Institutions also launched a $1.00 million share buyback program, suggesting that management believes its stock is undervalued.

Financial Institutions, Inc. (NASDAQ:FISI - Get Free Report) shares were up 8.4% on Friday after the company announced better than expected quarterly earnings. The stock traded as high as $29.25 and last traded at $28.70. Approximately 28,182 shares were traded during mid-day trading, a decline of 81% from the average daily volume of 151,498 shares. The stock had previously closed at $26.48.

The bank reported $0.99 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.88 by $0.11. The company had revenue of $63.85 million for the quarter, compared to analysts' expectations of $60.46 million. Financial Institutions had a positive return on equity of 10.44% and a negative net margin of 4.96%.

Financial Institutions Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, October 2nd. Investors of record on Monday, September 15th were given a $0.31 dividend. The ex-dividend date was Monday, September 15th. This represents a $1.24 dividend on an annualized basis and a dividend yield of 4.3%. Financial Institutions's dividend payout ratio (DPR) is -81.58%.

Financial Institutions declared that its Board of Directors has authorized a share buyback program on Monday, September 22nd that authorizes the company to repurchase $1.00 million in outstanding shares. This repurchase authorization authorizes the bank to buy up to 0.2% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company's management believes its stock is undervalued.

Wall Street Analysts Forecast Growth

A number of analysts have commented on the stock. Wall Street Zen lowered shares of Financial Institutions from a "buy" rating to a "hold" rating in a research note on Saturday, July 26th. Weiss Ratings reiterated a "sell (d+)" rating on shares of Financial Institutions in a report on Wednesday, October 8th. Two equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Financial Institutions has a consensus rating of "Hold" and a consensus target price of $33.00.

Institutional Investors Weigh In On Financial Institutions

Hedge funds have recently modified their holdings of the business. CWM LLC boosted its holdings in Financial Institutions by 8.1% in the 1st quarter. CWM LLC now owns 9,222 shares of the bank's stock valued at $230,000 after purchasing an additional 688 shares during the period. Cutler Capital Management LLC raised its holdings in Financial Institutions by 1.9% in the 2nd quarter. Cutler Capital Management LLC now owns 47,925 shares of the bank's stock valued at $1,231,000 after acquiring an additional 900 shares in the last quarter. Police & Firemen s Retirement System of New Jersey increased its position in shares of Financial Institutions by 29.8% during the second quarter. Police & Firemen s Retirement System of New Jersey now owns 4,805 shares of the bank's stock valued at $123,000 after purchasing an additional 1,103 shares during the period. Rhumbline Advisers boosted its stake in Financial Institutions by 5.0% during the first quarter. Rhumbline Advisers now owns 24,489 shares of the bank's stock worth $611,000 after buying an additional 1,157 shares in the last quarter. Finally, Thrivent Financial for Lutherans boosted its position in shares of Financial Institutions by 13.3% during the 2nd quarter. Thrivent Financial for Lutherans now owns 10,409 shares of the bank's stock valued at $267,000 after acquiring an additional 1,218 shares in the last quarter. 60.45% of the stock is owned by institutional investors.

Financial Institutions Stock Performance

The company has a debt-to-equity ratio of 0.20, a current ratio of 0.87 and a quick ratio of 0.87. The firm has a market cap of $576.83 million, a P/E ratio of -18.85 and a beta of 0.71. The stock's 50 day moving average is $26.94 and its two-hundred day moving average is $25.97.

Financial Institutions Company Profile

Financial Institutions, Inc operates as a holding company for the Five Star Bank, a chartered bank that provides banking and financial services to individuals, municipalities, and businesses in New York. The company provides checking and savings account programs, including money market accounts, certificates of deposit, sweep investments, and individual retirement and other qualified plan accounts, as well as NOW accounts.

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