Provident Financial Services (NYSE:PFS) Price Target Raised to $26.00

Key Points

• Keefe, Bruyette & Woods raised its price target to $26.00 for Provident Financial Services and kept an "outperform" rating, implying about a 15.27% upside from the prior close while consensus analyst sentiment remains "Buy" (average target $24.25).
• Q1 results beat expectations: Provident reported EPS of $0.61 versus $0.55 consensus and revenue roughly in line at $225.2M, though results included a $2.1M one‑time credit loss recapture and management set 2026 NIM guidance of 3.40%–3.45%.
• The board approved a modest $2.81M share buyback (≈0.1% of shares) and declared a $0.24 annualized dividend (≈4.3% yield), indicating shareholder‑friendly capital allocation despite the small buyback size.

Provident Financial Services (NYSE:PFS - Get Free Report) had its price target boosted by equities researchers at Keefe, Bruyette & Woods from $25.00 to $26.00 in a research report issued to clients and investors on Friday,Benzinga reports. The firm currently has an "outperform" rating on the savings and loans company's stock. Keefe, Bruyette & Woods' price objective suggests a potential upside of 15.27% from the company's previous close.

A number of other research firms have also weighed in on PFS. Royal Bank Of Canada set a $25.00 target price on shares of Provident Financial Services in a research report on Thursday, January 29th. Piper Sandler initiated coverage on shares of Provident Financial Services in a research report on Monday, March 16th. They set an "overweight" rating and a $25.00 target price for the company. Weiss Ratings raised shares of Provident Financial Services from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Wednesday, April 1st. Finally, DA Davidson initiated coverage on shares of Provident Financial Services in a research report on Wednesday, February 25th. They set a "neutral" rating and a $25.00 target price for the company. Two analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Buy" and an average target price of $24.25.

Provident Financial Services Stock Down 0.6%

PFS stock traded down $0.13 during trading hours on Friday, hitting $22.56. The company's stock had a trading volume of 254,988 shares, compared to its average volume of 949,726. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 0.90. The company has a market capitalization of $2.95 billion, a PE ratio of 9.61 and a beta of 0.81. Provident Financial Services has a 12 month low of $15.92 and a 12 month high of $23.98. The stock has a 50 day moving average price of $21.56 and a two-hundred day moving average price of $20.66.

Provident Financial Services (NYSE:PFS - Get Free Report) last posted its earnings results on Thursday, April 30th. The savings and loans company reported $0.61 EPS for the quarter, topping the consensus estimate of $0.55 by $0.06. Provident Financial Services had a net margin of 21.95% and a return on equity of 11.07%. The company had revenue of $225.20 million during the quarter, compared to the consensus estimate of $225.62 million. During the same period in the previous year, the firm posted $0.49 earnings per share. The company's revenue for the quarter was up 7.9% compared to the same quarter last year. On average, equities research analysts expect that Provident Financial Services will post 2.34 earnings per share for the current year.

Provident Financial Services declared that its board has approved a stock buyback plan on Monday, January 26th that authorizes the company to buyback $2.81 million in shares. This buyback authorization authorizes the savings and loans company to purchase up to 0.1% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's board of directors believes its shares are undervalued.

Hedge Funds Weigh In On Provident Financial Services

Hedge funds have recently made changes to their positions in the business. Salomon & Ludwin LLC acquired a new position in shares of Provident Financial Services in the 3rd quarter valued at $26,000. Key Capital Management INC acquired a new position in shares of Provident Financial Services in the 4th quarter valued at $26,000. EverSource Wealth Advisors LLC raised its stake in shares of Provident Financial Services by 358.0% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,548 shares of the savings and loans company's stock valued at $27,000 after buying an additional 1,210 shares in the last quarter. Kemnay Advisory Services Inc. acquired a new position in shares of Provident Financial Services in the 4th quarter valued at $33,000. Finally, Danske Bank A S acquired a new stake in shares of Provident Financial Services during the 3rd quarter worth about $58,000. Institutional investors and hedge funds own 71.97% of the company's stock.

Key Headlines Impacting Provident Financial Services

Here are the key news stories impacting Provident Financial Services this week:

• Positive Sentiment: Q1 earnings beat and year-over-year profit growth: Provident reported EPS of $0.61, beating consensus (~$0.55) and showing healthy operating revenue drivers (net interest income expansion and higher insurance agency income). This supports valuation given a sub‑10x P/E. Q1 Earnings Press Release
• Positive Sentiment: Declared a cash dividend of $0.24 per share (annualized yield ~4.3%): a steady, income-supporting move that should appeal to yield-seeking investors. Ex-dividend/record/payable dates announced. Dividend Press Release
• Positive Sentiment: Management reaffirmed target loan and deposit growth of 4%–6% and emphasized diversification (insurance agency income growth): suggests continued top-line expansion and a less rate‑sensitive revenue mix. Guidance / Reaffirmation Article
• Neutral Sentiment: 2026 NIM guidance set to 3.40%–3.45%: management published a net interest margin outlook — useful for modeling—but the market interpretation depends on prior expectations; could limit upside if investors expected higher margins. NIM Outlook Article
• Neutral Sentiment: Q1 benefited from a $2.1M recapture of prior credit loss provisions — a modest one‑time boost to net income that investors should strip out when forecasting recurring earnings. Earnings Press Release
• Negative Sentiment: Revenue roughly in line but narrowly missed consensus ($225.20M vs. $225.62M) and the NIM outlook may signal limited margin expansion — together these elements likely pressured the stock today. Investors may be selling on guidance conservatism despite the EPS beat. Earnings Summary / Call Transcript

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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