FinWise Bancorp (NASDAQ:FINW) Rating Lowered to Strong Sell at Zacks Research

Key Points

• Zacks Research downgraded FinWise Bancorp from “hold” to “strong sell,” while analyst consensus remains “Hold” with a $19.00 target price.
• FinWise shares opened at $14.04, down 1.7%, and remain well below their 52-week high of $22.49.
• The company reported quarterly EPS of $0.15, missing the $0.24 consensus estimate, while revenue of $24.38 million fell short of the $47.11 million forecast. FinWise also authorized a buyback of up to 5% of its outstanding shares.

FinWise Bancorp (NASDAQ:FINW - Get Free Report) was downgraded by Zacks Research from a "hold" rating to a "strong sell" rating in a report issued on Monday,Zacks.com reports.

A number of other equities analysts have also issued reports on the company. Raymond James Financial reaffirmed an "outperform" rating and set a $16.00 price target on shares of FinWise Bancorp in a research note on Friday. Wall Street Zen lowered FinWise Bancorp from a "hold" rating to a "sell" rating in a report on Saturday. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of FinWise Bancorp in a research note on Monday. Two analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $19.00.

FinWise Bancorp Stock Down 1.7%

FINW stock opened at $14.04 on Monday. The company has a 50-day simple moving average of $14.20 and a 200 day simple moving average of $15.50. The company has a market capitalization of $192.56 million, a P/E ratio of 14.63 and a beta of 0.70. FinWise Bancorp has a fifty-two week low of $12.82 and a fifty-two week high of $22.49.

FinWise Bancorp (NASDAQ:FINW - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The company reported $0.15 EPS for the quarter, missing analysts' consensus estimates of $0.24 by ($0.09). The company 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 analysts anticipate that FinWise Bancorp will post 0.77 EPS for the current year.

FinWise Bancorp declared that its Board of Directors has initiated a share buyback program on Thursday, May 21st that authorizes the company to buyback 685,000,000,000 outstanding shares. This buyback authorization authorizes the company to buy up to 5% of its shares through open market purchases. Shares buyback programs are typically a sign that the company's management believes its stock is undervalued.

Institutional Trading of FinWise Bancorp

Large investors have recently added to or reduced their stakes in the company. BNP Paribas Financial Markets bought a new stake in shares of FinWise Bancorp during the second quarter worth $25,000. Bank of America Corp DE lifted its position in 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 worth $44,000 after buying an additional 2,838 shares in the last quarter. JPMorgan Chase & Co. bought a new stake in FinWise Bancorp during the 2nd quarter worth about $65,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new stake in FinWise Bancorp in the 2nd quarter valued at about $74,000. Finally, Cubist Systematic Strategies LLC acquired a new stake in FinWise Bancorp in the 1st quarter valued at about $104,000. 35.41% of the stock is owned by institutional investors.

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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