First Interstate BancSystem, Inc. (NASDAQ:FIBK) Given Average Rating of "Reduce" by Brokerages

Key Points

• First Interstate BancSystem has a consensus “Reduce” rating from eight analysts, with three sell, three hold, and two buy recommendations. The average 12-month price target is $36.83, below the reported share price of $37.49.
• The company exceeded quarterly expectations, reporting $0.87 EPS versus the $0.69 consensus estimate and revenue of $263.9 million, up 6.4% year over year. It also pays a quarterly dividend of $0.47 per share, representing a 5.0% annualized yield.
• Institutional investors own 88.71% of the stock, while insiders sold a combined 32,392 shares worth approximately $1.16 million over the past three months.

Shares of First Interstate BancSystem, Inc. (NASDAQ:FIBK - Get Free Report) have received a consensus recommendation of "Reduce" from the eight analysts that are presently covering the company, MarketBeat reports. Three equities research analysts have rated the stock with a sell recommendation, three have issued a hold recommendation and two have assigned a buy recommendation to the company. The average 1-year target price among brokerages that have issued a report on the stock in the last year is $36.8333.

FIBK has been the subject of several recent research reports. UBS Group raised their target price on shares of First Interstate BancSystem from $30.00 to $33.00 and gave the company a "sell" rating in a report on Friday, May 1st. Wall Street Zen raised shares of First Interstate BancSystem from a "strong sell" rating to a "sell" rating in a report on Monday, June 22nd. Wells Fargo & Company reiterated an "underweight" rating and issued a $34.00 price target (down from $36.00) on shares of First Interstate BancSystem in a research report on Monday, August 10th. Barclays cut shares of First Interstate BancSystem from an "equal weight" rating to an "underweight" rating and dropped their price objective for the stock from $38.00 to $37.00 in a research note on Monday, August 3rd. Finally, Keefe, Bruyette & Woods restated a "market perform" rating and set a $37.00 price objective (down from $38.00) on shares of First Interstate BancSystem in a research report on Friday, May 1st.

First Interstate BancSystem Stock Down 0.8%

FIBK opened at $37.49 on Friday. The business's fifty day moving average is $38.22 and its two-hundred day moving average is $36.20. The company has a debt-to-equity ratio of 0.09, a quick ratio of 0.69 and a current ratio of 0.69. The company has a market cap of $3.57 billion, a price-to-earnings ratio of 11.54 and a beta of 0.76. First Interstate BancSystem has a one year low of $29.10 and a one year high of $40.60.

First Interstate BancSystem (NASDAQ:FIBK - Get Free Report) last released its quarterly earnings results on Thursday, July 23rd. The financial services provider reported $0.87 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.69 by $0.18. First Interstate BancSystem had a return on equity of 9.55% and a net margin of 23.63%.The business had revenue of $263.90 million during the quarter, compared to the consensus estimate of $249.32 million. During the same quarter in the previous year, the company posted $0.69 EPS. The business's revenue was up 6.4% on a year-over-year basis. Analysts anticipate that First Interstate BancSystem will post 2.84 EPS for the current fiscal year.

First Interstate BancSystem Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, August 14th. Shareholders of record on Tuesday, August 4th were given a dividend of $0.47 per share. The ex-dividend date of this dividend was Tuesday, August 4th. This represents a $1.88 annualized dividend and a yield of 5.0%. First Interstate BancSystem's dividend payout ratio (DPR) is presently 57.85%.

Insiders Place Their Bets

In related news, major shareholder Jonathan R. Scott sold 12,892 shares of the stock in a transaction on Thursday, June 4th. The stock was sold at an average price of $35.58, for a total transaction of $458,697.36. Following the sale, the insider owned 866,628 shares of the company's stock, valued at $30,834,624.24. This trade represents a 1.47% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, major shareholder Julie A. Scott sold 15,000 shares of First Interstate BancSystem stock in a transaction dated Thursday, June 18th. The stock was sold at an average price of $35.97, for a total value of $539,550.00. Following the sale, the insider owned 488,359 shares of the company's stock, valued at approximately $17,566,273.23. This represents a 2.98% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 32,392 shares of company stock valued at $1,161,552. Insiders own 8.00% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in FIBK. BlackRock Inc. purchased a new stake in shares of First Interstate BancSystem during the second quarter worth about $529,533,000. Vanguard Group Inc. lifted its stake in shares of First Interstate BancSystem by 13.7% during the fourth quarter. Vanguard Group Inc. now owns 10,048,419 shares of the financial services provider's stock valued at $347,675,000 after buying an additional 1,214,454 shares during the period. Wellington Management Group LLP lifted its stake in shares of First Interstate BancSystem by 20.4% during the third quarter. Wellington Management Group LLP now owns 5,915,425 shares of the financial services provider's stock valued at $188,525,000 after buying an additional 1,003,021 shares during the period. Dimensional Fund Advisors LP boosted its position in First Interstate BancSystem by 4.3% during the first quarter. Dimensional Fund Advisors LP now owns 5,630,789 shares of the financial services provider's stock worth $188,066,000 after acquiring an additional 231,405 shares during the last quarter. Finally, State Street Corp boosted its position in First Interstate BancSystem by 29.7% during the fourth quarter. State Street Corp now owns 5,482,245 shares of the financial services provider's stock worth $189,686,000 after acquiring an additional 1,254,321 shares during the last quarter. 88.71% of the stock is currently owned by hedge funds and other institutional investors.

About First Interstate BancSystem

First Interstate BancSystem, Inc is a bank holding company headquartered in Billings, Montana. Through its principal subsidiary, First Interstate Bank, the company provides a full range of commercial and consumer banking services. Its offerings include business lending, commercial real estate financing, agricultural loans, residential mortgage products, and deposit accounts suitable for individuals, small businesses, and large corporations.

The company traces its roots back to the late 1960s and has grown through a combination of organic expansion and strategic acquisitions across the Western United States.

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