Provident Financial (NASDAQ:PROV) Stock Passes Above 200 Day Moving Average - Time to Sell?

Key Points

• Provident Financial shares rose above their 200-day moving average, reaching $18.34 before closing at $18.03, compared with the moving average of $16.73.
• Analysts maintain a cautious outlook: all three covering analysts rate the stock “Hold,” with a consensus price target of $18.00. The company nevertheless exceeded quarterly expectations, reporting $0.35 in EPS versus $0.29 expected and revenue of $15.22 million.
• Provident Financial declared a quarterly dividend of $0.14, equivalent to an annualized $0.56 payout and a 3.1% yield. Institutional investors own 71.34% of the company, while insiders have sold shares in recent months.

Shares of Provident Financial Holdings, Inc. (NASDAQ:PROV - Get Free Report) crossed above its two hundred day moving average during trading on Wednesday . The stock has a two hundred day moving average of $16.73 and traded as high as $18.34. Provident Financial shares last traded at $18.03, with a volume of 11,466 shares.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on PROV. Piper Sandler increased their price target on shares of Provident Financial from $17.00 to $18.00 and gave the company a "neutral" rating in a report on Monday. Weiss Ratings reiterated a "hold (c)" rating on shares of Provident Financial in a research report on Friday, July 17th. Finally, Zacks Research raised shares of Provident Financial to a "hold" rating in a report on Monday, June 29th. Three equities research analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $18.00.

Provident Financial Price Performance

The stock has a market capitalization of $112.69 million, a P/E ratio of 17.51 and a beta of 0.33. The company's 50-day simple moving average is $17.19 and its 200-day simple moving average is $16.73. The company has a debt-to-equity ratio of 1.45, a current ratio of 1.20 and a quick ratio of 1.20.

Provident Financial (NASDAQ:PROV - Get Free Report) last announced its earnings results on Tuesday, July 28th. The financial services provider reported $0.35 EPS for the quarter, topping the consensus estimate of $0.29 by $0.06. The business had revenue of $15.22 million during the quarter, compared to the consensus estimate of $10.00 million. Provident Financial had a net margin of 11.16% and a return on equity of 5.22%. As a group, sell-side analysts expect that Provident Financial Holdings, Inc. will post 1.22 EPS for the current fiscal year.

Provident Financial Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 3rd. Investors of record on Thursday, August 13th will be issued a $0.14 dividend. This represents a $0.56 dividend on an annualized basis and a yield of 3.1%. The ex-dividend date is Thursday, August 13th. Provident Financial's dividend payout ratio (DPR) is 54.37%.

Insider Activity

In related news, SVP David Weiant sold 2,732 shares of Provident Financial stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $17.12, for a total value of $46,771.84. Following the transaction, the senior vice president directly owned 6,175 shares of the company's stock, valued at $105,716. The trade was a 30.67% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders sold 4,744 shares of company stock worth $81,076 in the last ninety days. 11.49% of the stock is owned by company insiders.

Hedge Funds Weigh In On Provident Financial

Institutional investors have recently modified their holdings of the company. Susquehanna International Group LLP purchased a new position in Provident Financial during the third quarter worth about $273,000. Empowered Funds LLC increased its stake in shares of Provident Financial by 7.9% in the first quarter. Empowered Funds LLC now owns 29,084 shares of the financial services provider's stock worth $424,000 after purchasing an additional 2,120 shares in the last quarter. Federated Hermes Inc. grew its position in shares of Provident Financial by 13.2% in the fourth quarter. Federated Hermes Inc. now owns 29,657 shares of the financial services provider's stock valued at $472,000 after purchasing an additional 3,459 shares in the last quarter. Bridgeway Capital Management LLC boosted its position in shares of Provident Financial by 2.8% in the fourth quarter. Bridgeway Capital Management LLC now owns 66,654 shares of the financial services provider's stock valued at $1,060,000 after acquiring an additional 1,834 shares during the period. Finally, Fourthstone LLC grew its position in shares of Provident Financial by 52.6% during the 4th quarter. Fourthstone LLC now owns 352,151 shares of the financial services provider's stock valued at $5,603,000 after purchasing an additional 121,329 shares in the last quarter. 71.34% of the stock is owned by institutional investors and hedge funds.

Provident Financial Company Profile

Provident Financial Services, Inc NASDAQ: PROV is a bank holding company headquartered in Jersey City, New Jersey, that conducts its operations through its wholly owned subsidiary, Provident Bank. With origins dating back to 1839, the company has grown into a full-service financial institution offering a broad spectrum of products and services to individuals, small businesses and commercial clients.

The company's principal business activities include retail banking, commercial lending, mortgage finance and wealth management.

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