Provident Financial Services, Inc (NYSE:PFS) Receives Average Recommendation of "Buy" from Analysts

Key Points

• Analysts consensus: Seven analysts rate Provident Financial Services a consensus "Buy" (2 Hold, 3 Buy, 2 Strong Buy) with an average 12‑month price target of about $24.08.
• Recent results beat expectations: the company reported $0.64 EPS vs. $0.56 expected and $225.03M revenue (up 9.6% YoY), with a return on equity of 10.69% and analysts projecting roughly $2.34 EPS for the year.
• Capital returns: the board authorized a $2.81M share buyback (≈0.1% of shares) and the company pays a $0.24 quarterly dividend (annualized $0.96, ~4.3% yield, payout ratio ~43%).

Provident Financial Services, Inc (NYSE:PFS - Get Free Report) has been given a consensus rating of "Buy" by the seven analysts that are covering the firm, Marketbeat Ratings reports. Two investment analysts have rated the stock with a hold recommendation, three have given a buy recommendation and two have assigned a strong buy recommendation to the company. The average 1 year price target among brokerages that have issued a report on the stock in the last year is $24.0833.

A number of equities research analysts recently weighed in on the company. Weiss Ratings raised Provident Financial Services from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Wednesday, April 1st. Piper Sandler assumed coverage on Provident Financial Services in a research report on Monday, March 16th. They set an "overweight" rating and a $25.00 target price on the stock. Keefe, Bruyette & Woods lifted their target price on Provident Financial Services from $23.00 to $25.00 and gave the stock an "outperform" rating in a research report on Thursday, January 29th. Royal Bank Of Canada set a $25.00 target price on Provident Financial Services in a research report on Thursday, January 29th. Finally, DA Davidson began coverage on Provident Financial Services in a research report on Wednesday, February 25th. They set a "neutral" rating and a $25.00 target price on the stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. Salomon & Ludwin LLC bought a new position in shares of Provident Financial Services in the third quarter valued at approximately $26,000. Key Capital Management INC bought a new position in shares of Provident Financial Services in the fourth quarter valued at approximately $26,000. EverSource Wealth Advisors LLC raised its stake in shares of Provident Financial Services by 358.0% in the second quarter. EverSource Wealth Advisors LLC now owns 1,548 shares of the savings and loans company's stock valued at $27,000 after acquiring an additional 1,210 shares during the last quarter. Kemnay Advisory Services Inc. bought a new position in shares of Provident Financial Services in the fourth quarter valued at approximately $33,000. Finally, GAMMA Investing LLC raised its stake in shares of Provident Financial Services by 45.0% in the third quarter. GAMMA Investing LLC now owns 1,767 shares of the savings and loans company's stock valued at $34,000 after acquiring an additional 548 shares during the last quarter. Institutional investors own 71.97% of the company's stock.

Provident Financial Services Stock Down 2.1%

PFS stock opened at $22.35 on Wednesday. Provident Financial Services has a twelve month low of $15.47 and a twelve month high of $23.98. The company has a market cap of $2.92 billion, a PE ratio of 10.02 and a beta of 0.81. The business's 50-day simple moving average is $21.62 and its 200 day simple moving average is $20.52. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 0.90.

Provident Financial Services (NYSE:PFS - Get Free Report) last released its earnings results on Wednesday, January 28th. The savings and loans company reported $0.64 earnings per share for the quarter, topping analysts' consensus estimates of $0.56 by $0.08. Provident Financial Services had a return on equity of 10.69% and a net margin of 21.06%.The business had revenue of $225.03 million for the quarter, compared to the consensus estimate of $224.08 million. During the same period last year, the business earned $0.37 earnings per share. The firm's revenue for the quarter was up 9.6% compared to the same quarter last year. On average, research analysts anticipate that Provident Financial Services will post 2.34 earnings per share for the current year.

Provident Financial Services announced that its board has authorized a share repurchase plan on Monday, January 26th that authorizes the company to buyback $2.81 million in outstanding shares. This buyback authorization authorizes the savings and loans company to purchase up to 0.1% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's management believes its shares are undervalued.

Provident Financial Services Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, February 27th. Shareholders of record on Friday, February 13th were issued a dividend of $0.24 per share. This represents a $0.96 dividend on an annualized basis and a yield of 4.3%. The ex-dividend date of this dividend was Friday, February 13th. Provident Financial Services's payout ratio is presently 43.05%.

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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