FinWise Bancorp (NASDAQ:FINW) Announces Quarterly Earnings Results, Misses Expectations By $0.10 EPS

Key Points

• FinWise Bancorp reported quarterly EPS of $0.15, falling $0.10 short of the $0.25 consensus estimate. Revenue was $24.38 million, well below expectations of $47.11 million.
• The stock closed at $14.07, near the lower end of its 52-week range of $12.82 to $22.49. Analysts maintain a consensus “Hold” rating with an average price target of $22.00.
• The board authorized a share repurchase program covering up to 5% of outstanding shares, while institutional investors currently own 35.41% of the company.

FinWise Bancorp (NASDAQ:FINW - Get Free Report) posted its quarterly earnings results on Wednesday. The company reported $0.15 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.25 by ($0.10), FiscalAI reports. FinWise Bancorp had a return on equity of 8.24% and a net margin of 9.05%.The company had revenue of $24.38 million for the quarter, compared to the consensus estimate of $47.11 million.

FinWise Bancorp Price Performance

FINW traded up $0.11 on Wednesday, hitting $14.07. The company had a trading volume of 12,562 shares, compared to its average volume of 23,072. The stock has a fifty day simple moving average of $14.19 and a 200-day simple moving average of $15.63. The firm has a market capitalization of $192.90 million, a P/E ratio of 12.79 and a beta of 0.70. FinWise Bancorp has a 52-week low of $12.82 and a 52-week high of $22.49.

Analyst Upgrades and Downgrades

Several research analysts recently commented on the stock. Weiss Ratings downgraded shares of FinWise Bancorp from a "hold (c+)" rating to a "hold (c)" rating in a research note on Wednesday, May 6th. Zacks Research raised shares of FinWise Bancorp from a "strong sell" rating to a "hold" rating in a research note on Tuesday, June 30th. Finally, Wall Street Zen raised FinWise Bancorp from a "sell" rating to a "hold" rating in a research note on Sunday, July 12th. One analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, FinWise Bancorp currently has a consensus rating of "Hold" and an average price target of $22.00.

Institutional Investors Weigh In On FinWise Bancorp

Several hedge funds have recently made changes to their positions in FINW. BNP Paribas Financial Markets bought a new position in FinWise Bancorp in the second quarter worth $25,000. Bank of America Corp DE boosted its holdings in shares of FinWise Bancorp by 3,887.7% during the 2nd quarter. Bank of America Corp DE now owns 2,911 shares of the company's stock valued at $44,000 after buying an additional 2,838 shares in the last quarter. JPMorgan Chase & Co. purchased a new stake in shares of FinWise Bancorp in the 2nd quarter worth about $65,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. purchased a new stake in shares of FinWise Bancorp in the 2nd quarter worth about $74,000. Finally, Cubist Systematic Strategies LLC bought a new position in shares of FinWise Bancorp in the 1st quarter worth about $104,000. 35.41% of the stock is currently owned by institutional investors.

FinWise Bancorp declared that its board has initiated a share buyback program on Thursday, May 21st that authorizes the company to repurchase 685,000,000,000 shares. This repurchase authorization authorizes the company to repurchase up to 5% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company's board of directors believes its shares are undervalued.

About FinWise Bancorp

FinWise Bancorp is the bank holding company for FinWise Bank, a digital‐first community bank headquartered in Lindon, Utah. The company specializes in providing commercial lending and deposit products to marketplace lending platforms, fintech companies and small to mid‐sized businesses across the United States. FinWise Bancorp operates through its wholly owned subsidiary, FinWise Bank, which is FDIC‐insured and leverages a technology‐driven model to deliver banking services efficiently.

The company's primary business activities include participant financing arrangements for marketplace lenders and other fintech platforms, as well as direct commercial loans.

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