First Business Financial Services (NASDAQ:FBIZ) Sees Large Volume Increase After Better-Than-Expected Earnings

Key Points

• First Business Financial Services beat expectations, reporting quarterly EPS of $1.95 versus the $1.67 consensus and revenue of $47.51 million versus $46.88 million expected.
• Trading volume rose 6% above average following the results, while shares traded near $74.65 after closing at $73.76.
• Analysts maintain a favorable outlook, with an average “Buy” rating and a $78.25 price target; Piper Sandler raised its target to $84.00.

First Business Financial Services, Inc. (NASDAQ:FBIZ - Get Free Report) shares saw unusually-strong trading volume on Friday following a stronger than expected earnings report. 50,706 shares traded hands during mid-day trading, an increase of 6% from the average daily volume of 47,974 shares. The stock last traded at $74.6540 and had previously closed at $73.76.

The financial services provider reported $1.95 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.67 by $0.28. First Business Financial Services had a net margin of 19.28% and a return on equity of 14.92%. The firm had revenue of $47.51 million for the quarter, compared to analysts' expectations of $46.88 million.

Analysts Set New Price Targets

A number of brokerages have weighed in on FBIZ. Piper Sandler reiterated an "overweight" rating and set a $84.00 price target (up from $70.00) on shares of First Business Financial Services in a research report on Monday, August 3rd. DA Davidson set a $80.00 price objective on First Business Financial Services and gave the stock a "buy" rating in a research report on Monday, August 3rd. Raymond James Financial began coverage on shares of First Business Financial Services in a research report on Thursday, October 1st. They issued an "outperform" rating and a $75.00 price objective for the company. Keefe, Bruyette & Woods reissued 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, Weiss Ratings raised First Business Financial Services from a "buy (a-)" rating to a "buy (a+)" rating in a report on Thursday, October 8th. One equities research analyst has rated the stock with a Strong Buy rating and four have given a Buy rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Buy" and an average price target of $78.25.

Insider Buying and Selling at First Business Financial Services

In related news, insider Jodi Chandler sold 675 shares of the stock in a transaction on Thursday, August 27th. The shares were sold at an average price of $70.19, for a total transaction of $47,378.25. Following the completion of the transaction, the insider owned 22,550 shares in the company, valued at approximately $1,582,784.50. This represents a 2.91% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 5.00% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On First Business Financial Services

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Inspire Investing LLC bought a new position in shares of First Business Financial Services during the third quarter worth about $644,000. Sequoia Financial Advisors LLC bought a new stake in First Business Financial Services in the 2nd quarter worth about $255,000. Integrated Wealth Concepts LLC bought a new stake in shares of First Business Financial Services during the 2nd quarter worth $43,000. Squarepoint Ops LLC increased its position in First Business Financial Services by 95.1% in the second quarter. Squarepoint Ops LLC now owns 28,061 shares of the financial services provider's stock worth $1,773,000 after buying an additional 13,681 shares during the last quarter. Finally, Empowered Funds LLC bought a new position in First Business Financial Services in the 2nd quarter worth approximately $2,853,000. 60.07% of the stock is currently owned by institutional investors and hedge funds.

First Business Financial Services Price Performance

The company has a market capitalization of $624.85 million, a P/E ratio of 11.33 and a beta of 0.67. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 0.90. The business's 50-day moving average price is $70.86 and its 200 day moving average price is $62.24.

First Business Financial Services Company Profile

First Business Financial Services, Inc is the bank holding company for First Business Bank, a commercial bank focused on serving small and middle-market businesses, business owners and professionals. The company provides relationship-based banking services through a specialized commercial banking model.

Its products and services include commercial and industrial loans, commercial real estate financing, equipment financing, Small Business Administration lending, business deposit accounts, treasury management and cash-management services.

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