Five Star Bancorp (NASDAQ:FSBC) Announces Quarterly Earnings Results, Beats Expectations By $0.07 EPS

Key Points

• Quarterly beat: Five Star Bancorp reported $0.87 EPS vs. $0.80 expected (beat by $0.07), with a 14.49% return on equity and 24.11% net margin; the stock traded up to $40.79 (market cap ~$872M, P/E 14.07).
• Dividend announced: the company declared a $0.25 quarterly dividend ($1.00 annualized) for a 2.5% yield, with an ex-dividend date of May 4 and payment on May 11; payout ratio is 34.48%.
• Insider activity and sentiment: the CEO and an SVP sold shares recently (insiders own 21.79%), while analysts have a consensus "Moderate Buy" rating (five Buys, two Holds) and a $40.00 consensus price target.

Five Star Bancorp (NASDAQ:FSBC - Get Free Report) released its quarterly earnings results on Monday. The company reported $0.87 earnings per share for the quarter, beating analysts' consensus estimates of $0.80 by $0.07, Zacks reports. Five Star Bancorp had a return on equity of 14.49% and a net margin of 24.11%.

Five Star Bancorp Stock Up 0.7%

NASDAQ FSBC traded up $0.29 on Monday, reaching $40.79. 78,401 shares of the stock traded hands, compared to its average volume of 80,606. Five Star Bancorp has a 12 month low of $25.70 and a 12 month high of $42.26. The company has a market cap of $872.09 million, a price-to-earnings ratio of 14.07 and a beta of 0.53. The firm's fifty day simple moving average is $38.88 and its 200 day simple moving average is $37.18.

Five Star Bancorp Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, May 11th. Shareholders of record on Monday, May 4th will be given a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date is Monday, May 4th. Five Star Bancorp's dividend payout ratio is 34.48%.

Insiders Place Their Bets

In related news, SVP Michael Eugene Lee sold 1,200 shares of the firm's stock in a transaction dated Friday, February 20th. The stock was sold at an average price of $39.30, for a total transaction of $47,160.00. Following the completion of the transaction, the senior vice president owned 35,272 shares of the company's stock, valued at $1,386,189.60. This trade represents a 3.29% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO James Eugene Beckwith sold 4,000 shares of Five Star Bancorp stock in a transaction dated Monday, March 9th. The stock was sold at an average price of $36.66, for a total value of $146,640.00. Following the transaction, the chief executive officer directly owned 473,014 shares in the company, valued at approximately $17,340,693.24. The trade was a 0.84% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 21.79% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Five Star Bancorp

A number of institutional investors and hedge funds have recently bought and sold shares of FSBC. T. Rowe Price Investment Management Inc. boosted its position in shares of Five Star Bancorp by 0.9% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 2,017,380 shares of the company's stock valued at $72,182,000 after purchasing an additional 18,668 shares in the last quarter. Invesco Ltd. raised its holdings in shares of Five Star Bancorp by 0.9% in the 4th quarter. Invesco Ltd. now owns 337,497 shares of the company's stock worth $12,076,000 after purchasing an additional 2,850 shares in the last quarter. Susquehanna Fundamental Investments LLC bought a new stake in shares of Five Star Bancorp in the 4th quarter worth approximately $233,000. Occudo Quantitative Strategies LP acquired a new stake in Five Star Bancorp during the fourth quarter valued at approximately $294,000. Finally, Janus Henderson Group PLC acquired a new stake in Five Star Bancorp during the fourth quarter valued at approximately $221,000. 46.94% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several analysts recently commented on the company. Weiss Ratings restated a "buy (b-)" rating on shares of Five Star Bancorp in a research report on Thursday, January 22nd. DA Davidson boosted their price target on Five Star Bancorp from $43.00 to $45.00 and gave the stock a "buy" rating in a research report on Wednesday, January 28th. Finally, Keefe, Bruyette & Woods increased their price target on Five Star Bancorp from $40.00 to $41.00 and gave the stock a "market perform" rating in a research note on Thursday, January 29th. Five investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $40.00.

About Five Star Bancorp

Five Star Bancorp, Inc is the bank holding company for Five Star Bank, a community-focused financial institution serving retail and commercial customers primarily in Upstate New York. Headquartered in Rochester, the company provides a range of banking and financial services designed to meet the needs of individuals, families and businesses throughout its regional footprint.

The company's core business activities include deposit services—such as checking, savings and money market accounts—alongside consumer and mortgage lending.

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