First Business Financial Services (NASDAQ:FBIZ) Hits New 52-Week High - Should You Buy?

Key Points

• First Business Financial Services reached a new 52-week high of $73.74, with the stock recently trading near $72.96. Analysts remain bullish, assigning the shares an average “Buy” rating and a consensus price target of $75.50, with targets ranging from $74 to $84.
• The company exceeded quarterly expectations, reporting $1.84 in earnings per share versus the $1.56 consensus estimate and revenue of $46.71 million versus $45.42 million expected. Analysts project full-year earnings of $6.56 per share.
• FBIZ pays a quarterly dividend of $0.34, equivalent to an annualized $1.36 and a 1.9% yield. Institutional investors own approximately 60.07% of outstanding shares, while an insider recently sold 675 shares.

First Business Financial Services, Inc. (NASDAQ:FBIZ - Get Free Report)'s stock price hit a new 52-week high on Monday . The company traded as high as $73.74 and last traded at $72.9630, with a volume of 9283 shares. The stock had previously closed at $72.76.

Wall Street Analyst Weigh In

A number of analysts recently issued reports on FBIZ shares. DA Davidson set a $80.00 price objective on shares of First Business Financial Services and gave the stock a "buy" rating in a report on Monday, August 3rd. Weiss Ratings restated a "buy (a-)" rating on shares of First Business Financial Services in a research note on Friday. Keefe, Bruyette & Woods reaffirmed an "outperform" rating and issued a $74.00 price target (up from $68.00) on shares of First Business Financial Services in a report on Monday, August 3rd. Finally, Piper Sandler reiterated an "overweight" rating and issued a $84.00 price objective (up from $70.00) on shares of First Business Financial Services in a research note on Monday, August 3rd. One analyst has rated the stock with a Strong Buy rating and three have assigned a Buy rating to the stock. Based on data from MarketBeat.com, First Business Financial Services presently has an average rating of "Buy" and a consensus target price of $75.50.

First Business Financial Services Price Performance

The firm has a market capitalization of $609.44 million, a PE ratio of 11.10 and a beta of 0.65. The company has a debt-to-equity ratio of 0.90, a quick ratio of 1.06 and a current ratio of 1.06. The business's 50 day moving average is $68.89 and its two-hundred day moving average is $61.11.

First Business Financial Services (NASDAQ:FBIZ - Get Free Report) last posted its earnings results on Thursday, July 30th. The financial services provider reported $1.84 earnings per share for the quarter, topping analysts' consensus estimates of $1.56 by $0.28. The business had revenue of $46.71 million for the quarter, compared to analyst estimates of $45.42 million. First Business Financial Services had a net margin of 19.28% and a return on equity of 14.92%. Equities research analysts anticipate that First Business Financial Services, Inc. will post 6.56 earnings per share for the current fiscal year.

First Business Financial Services Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, August 26th. Stockholders of record on Wednesday, August 12th were paid a $0.34 dividend. The ex-dividend date of this dividend was Wednesday, August 12th. This represents a $1.36 dividend on an annualized basis and a dividend yield of 1.9%. First Business Financial Services's dividend payout ratio is 20.73%.

Insider Transactions at First Business Financial Services

In other news, insider Jodi Chandler sold 675 shares of the firm's stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $70.19, for a total value of $47,378.25. Following the transaction, the insider owned 22,550 shares in the company, valued at approximately $1,582,784.50. This trade represents a 2.91% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. 5.00% of the stock is currently owned by insiders.

Institutional Trading of First Business Financial Services

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Vista Investment Management purchased a new stake in shares of First Business Financial Services in the 2nd quarter worth about $3,307,000. De Lisle Partners LLP purchased a new position in First Business Financial Services during the 2nd quarter valued at about $6,258,000. GSA Capital Partners LLP boosted its stake in First Business Financial Services by 149.1% during the fourth quarter. GSA Capital Partners LLP now owns 30,210 shares of the financial services provider's stock worth $1,640,000 after acquiring an additional 18,083 shares in the last quarter. Empowered Funds LLC bought a new stake in First Business Financial Services during the second quarter worth about $2,853,000. Finally, The Manufacturers Life Insurance Company purchased a new stake in First Business Financial Services in the second quarter worth about $15,351,000. Hedge funds and other institutional investors own 60.07% of the company's stock.

About First Business Financial Services

First Business Financial Services, Inc is the holding company for First Business Bank, a full-service financial institution focused on serving privately held businesses, business owners, professionals and high-net-worth individuals. Through its banking subsidiary, the company provides commercial banking, business lending and deposit services tailored to the needs of small and middle-market companies.

Its products and services include commercial real estate and working-capital loans, equipment financing, lines of credit, treasury management, checking and savings accounts, certificates of deposit, and other business deposit products.

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