FinWise Bancorp (NASDAQ:FINW) Rating Lowered to "Equal Weight" at Stephens

Key Points

• Stephens downgraded FinWise Bancorp from “overweight” to “equal weight” and set a $16 price target, implying approximately 13.5% upside from the reported $14.10 share price.
• Analyst sentiment is mixed, with the stock carrying an overall “Hold” rating and an average target price of $18.00; ratings range from “strong sell” to “outperform.”
• FinWise’s latest quarterly results fell short of expectations, with earnings of $0.15 per share versus $0.24 forecast and revenue of $24.38 million versus a $47.11 million consensus estimate.

FinWise Bancorp (NASDAQ:FINW - Get Free Report) was downgraded by investment analysts at Stephens from an "overweight" rating to an "equal weight" rating in a research note issued to investors on Thursday, Marketbeat reports. They presently have a $16.00 target price on the stock. Stephens' price target indicates a potential upside of 13.48% from the company's current price.

A number of other equities research analysts also recently weighed in on the company. Zacks Research downgraded FinWise Bancorp from a "hold" rating to a "strong sell" rating in a report on Monday. Wall Street Zen downgraded FinWise Bancorp from a "hold" rating to a "sell" rating in a research note on Saturday, August 1st. Weiss Ratings reaffirmed a "hold (c)" rating on shares of FinWise Bancorp in a report on Monday. Finally, Raymond James Financial reiterated an "outperform" rating and set a $16.00 price objective on shares of FinWise Bancorp in a research report on Friday, July 31st. Two investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, FinWise Bancorp has an average rating of "Hold" and an average target price of $18.00.

FinWise Bancorp Stock Performance

Shares of NASDAQ FINW opened at $14.10 on Thursday. FinWise Bancorp has a 52 week low of $12.82 and a 52 week high of $22.49. The stock's fifty day moving average is $14.20 and its 200 day moving average is $15.47. The stock has a market capitalization of $193.31 million, a P/E ratio of 14.69 and a beta of 0.70.

FinWise Bancorp (NASDAQ:FINW - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The company reported $0.15 earnings per share for the quarter, missing analysts' consensus estimates of $0.24 by ($0.09). The firm had revenue of $24.38 million for the quarter, compared to the consensus estimate of $47.11 million. FinWise Bancorp had a return on equity of 7.10% and a net margin of 6.76%. Equities research analysts forecast that FinWise Bancorp will post 0.77 earnings per share for the current year.

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

Institutional Investors Weigh In On FinWise Bancorp

Institutional investors and hedge funds have recently made changes to their positions in the stock. Bank of America Corp DE raised its position in shares of FinWise Bancorp by 4,847.1% during the fourth quarter. Bank of America Corp DE now owns 3,463 shares of the company's stock worth $55,000 after acquiring an additional 3,393 shares during the last quarter. Cubist Systematic Strategies LLC bought a new position in FinWise Bancorp during the 1st quarter worth approximately $104,000. Goldman Sachs Group Inc. raised its holdings in FinWise Bancorp by 186.3% during the 1st quarter. Goldman Sachs Group Inc. now owns 40,136 shares of the company's stock worth $703,000 after purchasing an additional 26,115 shares during the last quarter. Empowered Funds LLC lifted its position in shares of FinWise Bancorp by 7.1% in the 1st quarter. Empowered Funds LLC now owns 24,052 shares of the company's stock worth $421,000 after purchasing an additional 1,591 shares during the period. Finally, Jane Street Group LLC lifted its position in shares of FinWise Bancorp by 169.2% in the 1st quarter. Jane Street Group LLC now owns 33,196 shares of the company's stock worth $581,000 after purchasing an additional 20,866 shares during the period. Institutional investors and hedge funds own 35.41% of the company's stock.

FinWise Bancorp Company Profile

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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