FinWise Bancorp (NASDAQ:FINW) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded FinWise Bancorp from “hold” to “sell.” However, other analysts remain more positive, with an overall “Moderate Buy” consensus and an average price target of $19.00.
• FinWise shares opened at $13.76, below their 50-day and 200-day moving averages, and have traded between $12.82 and $22.49 over the past year.
• The company’s latest quarterly results fell short of expectations, reporting $0.15 in EPS versus $0.24 expected and revenue of $24.38 million versus $47.11 million expected. FinWise also authorized a buyback of up to 5% of its outstanding shares.

FinWise Bancorp (NASDAQ:FINW - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued on Saturday.

Other equities analysts have also issued research reports about the stock. Raymond James Financial reiterated an "outperform" rating and issued a $16.00 price target on shares of FinWise Bancorp in a report on Friday. Weiss Ratings downgraded FinWise Bancorp from a "hold (c+)" rating to a "hold (c)" rating in a report on Wednesday, May 6th. Finally, Zacks Research raised FinWise Bancorp from a "strong sell" rating to a "hold" rating in a research report on Tuesday, June 30th. Two analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, FinWise Bancorp presently has an average rating of "Moderate Buy" and an average price target of $19.00.

FinWise Bancorp Price Performance

Shares of FINW stock opened at $13.76 on Friday. The firm's 50-day simple moving average is $14.19 and its 200-day simple moving average is $15.56. FinWise Bancorp has a 1-year low of $12.82 and a 1-year high of $22.49. The firm has a market cap of $188.65 million, a P/E ratio of 14.33 and a beta of 0.70.

FinWise Bancorp (NASDAQ:FINW - Get Free Report) last released its earnings results on Wednesday, July 29th. The company reported $0.15 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.24 by ($0.09). FinWise Bancorp had a net margin of 6.76% and a return on equity of 7.10%. The company had revenue of $24.38 million during the quarter, compared to analysts' expectations of $47.11 million. Analysts expect that FinWise Bancorp will post 1.18 earnings per share for the current fiscal year.

FinWise Bancorp declared that its board has approved a stock buyback plan on Thursday, May 21st that allows the company to repurchase 685,000,000,000 outstanding shares. This repurchase authorization allows the company to buy up to 5% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's board believes its stock is undervalued.

Institutional Investors Weigh In On FinWise Bancorp

Institutional investors have recently bought and sold shares of the business. Bank of America Corp DE increased its position in shares of FinWise Bancorp by 4,847.1% in 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 in the last quarter. Cubist Systematic Strategies LLC acquired a new position in shares of FinWise Bancorp during the 1st quarter valued at $104,000. Goldman Sachs Group Inc. lifted its holdings in shares of FinWise Bancorp by 186.3% during the 1st quarter. Goldman Sachs Group Inc. now owns 40,136 shares of the company's stock valued at $703,000 after acquiring an additional 26,115 shares in the last quarter. Empowered Funds LLC lifted its holdings in shares of FinWise Bancorp by 7.1% during the 1st quarter. Empowered Funds LLC now owns 24,052 shares of the company's stock valued at $421,000 after acquiring an additional 1,591 shares in the last quarter. Finally, Jane Street Group LLC boosted its position in FinWise Bancorp by 169.2% during 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. 35.41% of the stock is currently owned by hedge funds and other institutional investors.

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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