Keefe, Bruyette & Woods Forecasts Strong Price Appreciation for SmartFinancial (NASDAQ:SMBK) Stock

Key Points

• Keefe, Bruyette & Woods raised its price objective on SmartFinancial to $46 (from $42) while maintaining a "market perform" rating, implying about a 7.41% upside from the prior close.
• The board approved a $10 million stock repurchase program (up to 1.5% of shares), and Chairman Wesley Miller Welborn recently bought 835 shares, signaling insider confidence.
• Analysts hold a consensus of "Moderate Buy" with an average target of $42.90; SMBK trades near $42.83 with a market cap of ~$732 million and a one-year high of $43.90.

SmartFinancial (NASDAQ:SMBK - Get Free Report) had its price objective hoisted by stock analysts at Keefe, Bruyette & Woods from $42.00 to $46.00 in a report issued on Tuesday,Benzinga reports. The brokerage currently has a "market perform" rating on the bank's stock. Keefe, Bruyette & Woods' price objective would suggest a potential upside of 7.41% from the company's previous close.

Other research analysts also recently issued reports about the company. Zacks Research downgraded SmartFinancial from a "strong-buy" rating to a "hold" rating in a report on Thursday, March 5th. Raymond James Financial reissued a "strong-buy" rating and issued a $50.00 target price on shares of SmartFinancial in a report on Monday. Finally, Hovde Group raised SmartFinancial from a "market perform" rating to an "outperform" rating and set a $48.00 target price on the stock in a report on Thursday, January 22nd. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, SmartFinancial currently has a consensus rating of "Moderate Buy" and an average price target of $42.90.

SmartFinancial Stock Up 1.1%

Shares of SMBK opened at $42.83 on Tuesday. The company has a market capitalization of $732.27 million, a P/E ratio of 20.01 and a beta of 0.76. The company has a debt-to-equity ratio of 0.10, a current ratio of 0.90 and a quick ratio of 0.90. SmartFinancial has a one year low of $28.08 and a one year high of $43.90. The business's 50 day simple moving average is $40.03 and its 200-day simple moving average is $38.23.

SmartFinancial declared that its board has authorized a stock repurchase program on Friday, January 30th that authorizes the company to repurchase $10.00 million in shares. This repurchase authorization authorizes the bank to buy up to 1.5% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's board of directors believes its stock is undervalued.

Insiders Place Their Bets

In related news, Chairman Wesley Miller Welborn acquired 835 shares of the company's stock in a transaction that occurred on Monday, February 9th. The stock was purchased at an average price of $43.13 per share, for a total transaction of $36,013.55. Following the transaction, the chairman directly owned 96,468 shares of the company's stock, valued at approximately $4,160,664.84. This trade represents a 0.87% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at this hyperlink. 7.62% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. raised its position in SmartFinancial by 3.2% in the 3rd quarter. Vanguard Group Inc. now owns 846,978 shares of the bank's stock worth $30,263,000 after purchasing an additional 26,373 shares during the last quarter. Dimensional Fund Advisors LP raised its position in SmartFinancial by 0.3% in the 4th quarter. Dimensional Fund Advisors LP now owns 838,797 shares of the bank's stock worth $31,027,000 after purchasing an additional 2,268 shares during the last quarter. Wellington Management Group LLP raised its position in shares of SmartFinancial by 12.5% during the 4th quarter. Wellington Management Group LLP now owns 728,151 shares of the bank's stock valued at $26,934,000 after acquiring an additional 80,639 shares during the last quarter. Renaissance Technologies LLC raised its position in shares of SmartFinancial by 3.2% during the 4th quarter. Renaissance Technologies LLC now owns 178,374 shares of the bank's stock valued at $6,598,000 after acquiring an additional 5,500 shares during the last quarter. Finally, Goldman Sachs Group Inc. raised its position in shares of SmartFinancial by 55.9% during the 4th quarter. Goldman Sachs Group Inc. now owns 163,240 shares of the bank's stock valued at $6,038,000 after acquiring an additional 58,560 shares during the last quarter. Institutional investors own 58.78% of the company's stock.

SmartFinancial Company Profile

SmartFinancial, Inc is a bank holding company headquartered in Knoxville, Tennessee, operating through its primary subsidiary, SmartBank. Incorporated in 2006, the company provides a full suite of banking and financial services to individuals, small and middle-market businesses and public entities across its regional footprint. SmartFinancial's network of branch offices and digital platforms combines community-banking relationships with modern technology to serve its customers' evolving needs.

Through SmartBank, the company offers a broad range of deposit products, including checking, savings and certificate of deposit accounts, alongside consumer and commercial lending solutions.

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