Provident Financial Services, Inc (NYSE:PFS) Given Average Recommendation of "Buy" by Brokerages

Key Points

• Provident Financial Services has an average analyst rating of "Buy" from seven brokerages, with a 1-year average price target of about $23.92.
• The company recently beat earnings expectations, reporting $0.61 EPS versus $0.55 expected, while revenue rose 7.9% year over year.
• Provident also announced a quarterly dividend of $0.24 per share and a small stock repurchase program, though CEO George Lista recently sold 2,556 shares.

Shares of Provident Financial Services, Inc (NYSE:PFS - Get Free Report) have been given an average recommendation of "Buy" by the seven brokerages that are currently covering the company, Marketbeat reports. Two equities research analysts have rated the stock with a hold rating, three have assigned a buy rating and two have given a strong buy rating to the company. The average 1-year price objective among brokers that have covered the stock in the last year is $23.9167.

PFS has been the topic of several recent research reports. Keefe, Bruyette & Woods lifted their price objective on shares of Provident Financial Services from $25.00 to $26.00 and gave the stock an "outperform" rating in a research note on Friday, May 1st. DA Davidson reaffirmed a "neutral" rating and issued a $23.00 price objective on shares of Provident Financial Services in a research note on Friday, May 1st. Piper Sandler initiated coverage on shares of Provident Financial Services in a research note on Monday, March 16th. They issued an "overweight" rating and a $25.00 price objective on the stock. Weiss Ratings raised shares of Provident Financial Services from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday, May 1st. Finally, Royal Bank Of Canada set a $25.00 price objective on shares of Provident Financial Services in a research note on Thursday, January 29th.

Provident Financial Services Stock Down 2.5%

Provident Financial Services stock opened at $21.46 on Friday. The stock has a market cap of $2.80 billion, a price-to-earnings ratio of 9.13 and a beta of 0.80. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 1.03. The company's 50-day moving average price is $21.62 and its two-hundred day moving average price is $20.89. Provident Financial Services has a 52 week low of $15.92 and a 52 week high of $23.98.

Provident Financial Services (NYSE:PFS - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The savings and loans company reported $0.61 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.55 by $0.06. The company had revenue of $225.20 million for the quarter, compared to analysts' expectations of $225.62 million. Provident Financial Services had a net margin of 21.95% and a return on equity of 10.98%. The business's revenue was up 7.9% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.49 EPS. On average, analysts expect that Provident Financial Services will post 2.36 EPS for the current fiscal year.

Provident Financial Services Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, May 29th. Stockholders of record on Friday, May 15th will be paid a $0.24 dividend. The ex-dividend date of this dividend is Friday, May 15th. This represents a $0.96 annualized dividend and a dividend yield of 4.5%. Provident Financial Services's payout ratio is currently 40.85%.

Provident Financial Services declared that its board has authorized a stock repurchase program on Monday, January 26th that permits the company to repurchase $2.81 million in outstanding shares. This repurchase authorization permits the savings and loans company to purchase up to 0.1% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling at Provident Financial Services

In other news, CEO George Lista sold 2,556 shares of Provident Financial Services stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $22.40, for a total value of $57,254.40. Following the transaction, the chief executive officer directly owned 109,262 shares of the company's stock, valued at $2,447,468.80. This trade represents a 2.29% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 3.02% of the stock is currently owned by company insiders.

Institutional Trading of Provident Financial Services

Several institutional investors have recently made changes to their positions in PFS. Key Capital Management INC acquired a new stake in shares of Provident Financial Services during the fourth quarter worth approximately $26,000. EverSource Wealth Advisors LLC boosted its holdings in shares of Provident Financial Services by 358.0% during the second quarter. EverSource Wealth Advisors LLC now owns 1,548 shares of the savings and loans company's stock worth $27,000 after purchasing an additional 1,210 shares during the period. Kemnay Advisory Services Inc. acquired a new stake in shares of Provident Financial Services during the fourth quarter worth approximately $33,000. Danske Bank A S acquired a new stake in shares of Provident Financial Services during the third quarter worth approximately $58,000. Finally, Hillsdale Investment Management Inc. boosted its holdings in shares of Provident Financial Services by 40.9% during the third quarter. Hillsdale Investment Management Inc. now owns 3,100 shares of the savings and loans company's stock worth $60,000 after purchasing an additional 900 shares during the period. 71.97% of the stock is currently owned by institutional investors and hedge funds.

About Provident Financial Services

Provident Financial Services, Inc is the bank holding company for Provident Bank, a regional commercial bank headquartered in Jersey City, New Jersey. The company operates a network of full-service branches across New Jersey, the New York metropolitan area and eastern Pennsylvania, offering a range of personal and business banking solutions.

Its core products and services include checking and savings accounts, consumer and residential mortgage loans, commercial real estate financing and small-business lending.

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