First Business Financial Services (NASDAQ:FBIZ) Sees Large Volume Increase - Here's Why

Key Points

• Analyst sentiment remains positive: FBIZ has a consensus “Buy” rating from five analysts, with an average price target of $78.25 versus its recent price of about $71.37.
• Recent results exceeded expectations: The company reported quarterly EPS of $1.84, beating estimates of $1.56, while revenue of $46.71 million also topped forecasts.
• Shareholders received a quarterly dividend: First Business Financial Services paid $0.34 per share, equivalent to $1.36 annually and a 1.9% yield; institutional investors own approximately 60.07% of the stock.

First Business Financial Services, Inc. (NASDAQ:FBIZ - Get Free Report) shares saw unusually-high trading volume on Tuesday. Approximately 35,429 shares were traded during mid-day trading, a decline of 26% from the previous session's volume of 47,618 shares. The stock last traded at $71.3650 and had previously closed at $70.52.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on FBIZ shares. Piper Sandler reaffirmed an "overweight" rating and issued a $84.00 price target (up from $70.00) on shares of First Business Financial Services in a report on Monday, August 3rd. Raymond James Financial started coverage on First Business Financial Services in a research note on Thursday, October 1st. They set an "outperform" rating and a $75.00 price objective for the company. DA Davidson set a $80.00 price objective on First Business Financial Services and gave the stock a "buy" rating in a research note on Monday, August 3rd. Keefe, Bruyette & Woods restated an "outperform" rating and issued a $74.00 target price (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 research report on Thursday, October 8th. One investment analyst has rated the stock with a Strong Buy rating and four have assigned a Buy rating to the company. According to data from MarketBeat, First Business Financial Services presently has a consensus rating of "Buy" and an average target price of $78.25.

First Business Financial Services Trading Up 2.3%

The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 0.90. The stock has a market cap of $597.83 million, a price-to-earnings ratio of 10.89 and a beta of 0.67. The company has a fifty day simple moving average of $70.65 and a 200-day simple moving average of $64.19.

First Business Financial Services (NASDAQ:FBIZ - Get Free Report) last announced its earnings results on Thursday, July 30th. The financial services provider reported $1.84 EPS for the quarter, topping the consensus estimate of $1.56 by $0.28. The company had revenue of $46.71 million during the quarter, compared to analysts' expectations of $45.42 million. First Business Financial Services had a net margin of 19.28% and a return on equity of 14.92%. On average, research analysts forecast that First Business Financial Services, Inc. will post 6.59 earnings per share for the current fiscal year.

First Business Financial Services Announces Dividend

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

Insider Buying and Selling

In related 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 completion of the transaction, the insider owned 22,550 shares of the company's stock, valued at approximately $1,582,784.50. This trade represents a 2.91% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 5.00% of the company's stock.

Institutional Trading of First Business Financial Services

Several large investors have recently added to or reduced their stakes in FBIZ. Vista Investment Management acquired a new stake in shares of First Business Financial Services during the second quarter worth approximately $3,307,000. De Lisle Partners LLP bought a new stake in First Business Financial Services in the second quarter worth $6,258,000. The Manufacturers Life Insurance Company acquired a new position in shares of First Business Financial Services during the 2nd quarter valued at about $15,351,000. Bank of New York Mellon Corp acquired a new position in First Business Financial Services during the second quarter valued at approximately $2,061,000. Finally, Empowered Funds LLC acquired a new position in First Business Financial Services in the 2nd quarter valued at $2,853,000. 60.07% of the stock is owned by institutional investors and hedge funds.

About First Business Financial Services

First Business Financial Services, Inc is a bank holding company headquartered in Madison, Wisconsin. Through its principal subsidiary, First Business Bank, the company provides commercial banking services primarily to small and middle-market businesses, business owners, professionals and individuals.

First Business Bank offers business checking and savings accounts, treasury management, commercial real estate lending, business loans, lines of credit, equipment financing and other lending solutions.

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