First Business Financial Services, Inc. (NASDAQ:FBIZ) to Issue Quarterly Dividend of $0.34

Key Points

• First Business Financial Services declared a quarterly dividend of $0.34 per share, payable August 26 to shareholders of record August 12. The payment represents a 2.0% annualized yield, and the company has increased its dividend for 13 consecutive years.
• The dividend appears well covered, with a payout ratio of 22.4%; analysts expect next year’s earnings of $6.75 per share versus an annualized dividend of $1.36.
• First Business Financial Services beat quarterly earnings expectations, reporting EPS of $1.84 versus the $1.54 consensus and revenue of $46.70 million versus estimates of $45.42 million. Institutional investors own approximately 60.1% of the company’s shares.

First Business Financial Services, Inc. (NASDAQ:FBIZ - Get Free Report) announced a quarterly dividend on Thursday, July 30th. Stockholders of record on Wednesday, August 12th will be paid a dividend of 0.34 per share by the financial services provider on Wednesday, August 26th. This represents a c) annualized dividend and a dividend yield of 2.0%. The ex-dividend date is Wednesday, August 12th.

First Business Financial Services has raised its dividend payment by an average of 0.1%per year over the last three years and has raised its dividend every year for the last 13 years. First Business Financial Services has a dividend payout ratio of 22.4% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect First Business Financial Services to earn $6.75 per share next year, which means the company should continue to be able to cover its $1.36 annual dividend with an expected future payout ratio of 20.1%.

First Business Financial Services Price Performance

Shares of FBIZ opened at $66.90 on Friday. The firm's 50 day moving average price is $61.98 and its 200 day moving average price is $58.17. The company has a market cap of $559.32 million, a P/E ratio of 11.02 and a beta of 0.66. The company has a quick ratio of 1.03, a current ratio of 1.04 and a debt-to-equity ratio of 0.82. First Business Financial Services has a fifty-two week low of $45.90 and a fifty-two week high of $69.83.

First Business Financial Services (NASDAQ:FBIZ - Get Free Report) last released its earnings results on Thursday, July 30th. The financial services provider reported $1.84 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.54 by $0.30. The firm had revenue of $46.70 million during the quarter, compared to analyst estimates of $45.42 million. First Business Financial Services had a return on equity of 14.60% and a net margin of 18.16%. On average, research analysts forecast that First Business Financial Services will post 6.21 earnings per share for the current fiscal year.

Hedge Funds Weigh In On First Business Financial Services

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Northwestern Mutual Wealth Management Co. acquired a new position in First Business Financial Services in the 3rd quarter valued at about $33,000. State of Alaska Department of Revenue increased its holdings in shares of First Business Financial Services by 174.2% in the fourth quarter. State of Alaska Department of Revenue now owns 905 shares of the financial services provider's stock valued at $48,000 after purchasing an additional 575 shares during the period. EverSource Wealth Advisors LLC increased its holdings in shares of First Business Financial Services by 32,175.0% in the second quarter. EverSource Wealth Advisors LLC now owns 1,291 shares of the financial services provider's stock valued at $65,000 after purchasing an additional 1,287 shares during the period. Tower Research Capital LLC TRC raised its stake in shares of First Business Financial Services by 356.5% during the second quarter. Tower Research Capital LLC TRC now owns 1,890 shares of the financial services provider's stock worth $96,000 after purchasing an additional 1,476 shares during the last quarter. Finally, Virtus Advisers LLC acquired a new stake in shares of First Business Financial Services in the 3rd quarter worth $109,000. Hedge funds and other institutional investors own 60.07% of the company's stock.

About First Business Financial Services

First Business Financial Services, Inc NASDAQ: FBIZ is a bank holding company headquartered in Madison, Wisconsin, offering a suite of commercial banking and financial services. Through its wholly owned subsidiary, First Business Bank, the company provides relationship-driven lending, deposit and treasury management solutions to small and mid-sized businesses, nonprofit organizations and high-net-worth individuals. Its core products include commercial real estate financing, equipment leasing, SBA-guaranteed lending, and cash management services.

In addition to lending and depository services, First Business Bank delivers investment advisory and wealth management through dedicated trust and private banking teams.

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