Five Star Bancorp (NASDAQ:FSBC) Receives Average Recommendation of "Moderate Buy" from Analysts

Five Star Bancorp (NASDAQ:FSBC - Get Free Report) has earned an average rating of "Moderate Buy" from the six ratings firms that are presently covering the firm, MarketBeat.com reports. Two research analysts have rated the stock with a hold rating and four have given a buy rating to the company. The average 12-month price target among brokers that have issued ratings on the stock in the last year is $45.20.

FSBC has been the subject of a number of research reports. DA Davidson lifted their target price on Five Star Bancorp from $53.00 to $55.00 and gave the stock a "buy" rating in a report on Wednesday. Weiss Ratings reissued a "buy (b)" rating on shares of Five Star Bancorp in a research report on Monday, June 1st. Stephens set a $51.00 price objective on shares of Five Star Bancorp in a research note on Monday. Finally, Keefe, Bruyette & Woods increased their price objective on shares of Five Star Bancorp from $41.00 to $43.00 and gave the stock a "market perform" rating in a research note on Friday, May 1st.

More Five Star Bancorp News

Here are the key news stories impacting Five Star Bancorp this week:

• Positive Sentiment: Directors made substantial open-market purchases. Six directors collectively bought 142,727 shares for approximately $6.28 million at $44 per share. The largest purchase was Larry Eugene Allbaugh’s 96,591-share, $4.25 million acquisition. Broad insider buying can signal confidence in FSBC’s valuation and outlook. Insider buying report
• Positive Sentiment: Recent earnings exceeded expectations. Five Star Bancorp reported quarterly EPS of $0.91 versus the $0.86 consensus estimate, while revenue of roughly $48.0 million also topped forecasts. Its 16.17% return on equity and 25.92% net margin reinforce the case that earnings are supporting fair value. A valuation analysis described FSBC as approximately 2% undervalued. Fair value analysis
• Positive Sentiment: The quarterly dividend remains attractive. The company declared a $0.25-per-share dividend, equivalent to $1.00 annually and a yield of about 2.1%. The payout ratio is approximately 29.6%, suggesting room to maintain the dividend if earnings remain stable.
• Neutral Sentiment: The completed capital raise improves financial flexibility. Including the underwriters’ overallotment, FSBC sold 3,133,750 shares at $44 each and expects approximately $130.6 million in net proceeds. The funds may support Five Star Bank investments, loan growth and other corporate purposes. Offering announcement
• Negative Sentiment: The offering creates near-term shareholder dilution. The increased share count could pressure per-share earnings and offset some of the benefit from the new capital, likely contributing to caution despite the positive operating and insider-buying signals.

Insider Activity at Five Star Bancorp

In related news, Director Shannon Deary-Bell bought 5,682 shares of the stock in a transaction dated Wednesday, July 22nd. The shares were purchased at an average price of $44.00 per share, for a total transaction of $250,008.00. Following the completion of the purchase, the director directly owned 85,244 shares of the company's stock, valued at $3,750,736. This represents a 7.14% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Donna Lucas bought 1,136 shares of the company's stock in a transaction that occurred on Wednesday, July 22nd. The shares were bought at an average cost of $44.00 per share, for a total transaction of $49,984.00. Following the completion of the acquisition, the director owned 14,254 shares of the company's stock, valued at $627,176. This trade represents a 8.66% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last three months, insiders acquired 142,727 shares of company stock worth $6,279,988 and sold 12,692 shares worth $524,640. 21.79% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Five Star Bancorp

Hedge funds have recently bought and sold shares of the stock. Adage Capital Partners GP L.L.C. increased its holdings in shares of Five Star Bancorp by 75.8% during the 4th quarter. Adage Capital Partners GP L.L.C. now owns 569,804 shares of the company's stock valued at $20,388,000 after purchasing an additional 245,727 shares in the last quarter. Russell Investments Group Ltd. grew its position in Five Star Bancorp by 4,770.8% during the third quarter. Russell Investments Group Ltd. now owns 58,742 shares of the company's stock valued at $1,892,000 after buying an additional 57,536 shares during the period. Kennedy Capital Management LLC increased its holdings in Five Star Bancorp by 14.8% in the fourth quarter. Kennedy Capital Management LLC now owns 438,831 shares of the company's stock valued at $15,701,000 after buying an additional 56,412 shares in the last quarter. Deprince Race & Zollo Inc. raised its position in shares of Five Star Bancorp by 81.1% in the fourth quarter. Deprince Race & Zollo Inc. now owns 124,338 shares of the company's stock worth $4,449,000 after acquiring an additional 55,698 shares during the period. Finally, Inspire Investing LLC boosted its stake in shares of Five Star Bancorp by 348.0% during the 1st quarter. Inspire Investing LLC now owns 58,627 shares of the company's stock worth $2,211,000 after acquiring an additional 45,541 shares in the last quarter. Hedge funds and other institutional investors own 46.94% of the company's stock.

Five Star Bancorp Stock Performance

Shares of FSBC opened at $47.42 on Thursday. The stock has a 50-day moving average of $45.95 and a two-hundred day moving average of $41.64. Five Star Bancorp has a one year low of $28.34 and a one year high of $50.26. The stock has a market cap of $1.01 billion, a P/E ratio of 14.03 and a beta of 0.53.

Five Star Bancorp (NASDAQ:FSBC - Get Free Report) last posted its quarterly earnings results on Wednesday, July 22nd. The company reported $0.91 earnings per share for the quarter, beating the consensus estimate of $0.86 by $0.05. The business had revenue of $47.95 million for the quarter, compared to the consensus estimate of $47.72 million. Five Star Bancorp had a return on equity of 16.17% and a net margin of 25.92%. Analysts predict that Five Star Bancorp will post 3.55 EPS for the current fiscal year.

Five Star Bancorp Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, August 10th. Shareholders of record on Monday, August 3rd will be issued a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 2.1%. The ex-dividend date of this dividend is Monday, August 3rd. Five Star Bancorp's dividend payout ratio is presently 29.59%.

Five Star Bancorp Company Profile

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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