Provident Financial Services (NYSE:PFS) Price Target Raised to $28.50 at Hovde Group

Key Points

• Hovde Group raised its price target for Provident Financial Services to $28.50 from $26.50 and maintained an “outperform” rating, implying approximately 14.7% upside from the prior close.
• Provident reported quarterly earnings of $0.60 per share and revenue of $234.96 million, exceeding analyst estimates of $0.56 EPS and $225.57 million in revenue.
• Analyst sentiment remains favorable, with the stock carrying a consensus “Moderate Buy” rating and an average price target of $25.50; the company also declared a $0.24 quarterly dividend.

Provident Financial Services (NYSE:PFS - Get Free Report) had its target price increased by equities research analysts at Hovde Group from $26.50 to $28.50 in a research note issued on Friday. The firm currently has an "outperform" rating on the savings and loans company's stock. Hovde Group's price objective points to a potential upside of 14.66% from the stock's previous close.

PFS has been the topic of several other reports. Stephens assumed coverage on Provident Financial Services in a report on Monday, June 8th. They issued an "equal weight" rating and a $24.00 target price on the stock. DA Davidson restated a "neutral" rating and set a $23.00 target price on shares of Provident Financial Services in a report on Friday, May 1st. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Provident Financial Services in a report on Wednesday. Keefe, Bruyette & Woods upped their price target on shares of Provident Financial Services from $25.00 to $26.00 and gave the stock an "outperform" rating in a research report on Friday, May 1st. Finally, Raymond James Financial lifted their target price on Provident Financial Services from $25.00 to $27.00 and gave the company a "strong-buy" rating in a research note on Wednesday, July 1st. Two investment analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $25.50.

Provident Financial Services Stock Performance

PFS opened at $24.86 on Friday. The stock has a market cap of $3.24 billion, a PE ratio of 10.36 and a beta of 0.78. Provident Financial Services has a 1 year low of $17.61 and a 1 year high of $25.41. The stock's 50 day simple moving average is $23.22 and its 200-day simple moving average is $22.27. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 1.03.

Provident Financial Services (NYSE:PFS - Get Free Report) last issued its earnings results on Thursday, July 30th. The savings and loans company reported $0.60 earnings per share for the quarter, beating the consensus estimate of $0.56 by $0.04. The business had revenue of $234.96 million for the quarter, compared to analyst estimates of $225.57 million. Provident Financial Services had a net margin of 22.15% and a return on equity of 11.09%. During the same period in the previous year, the business earned $0.55 EPS. Sell-side analysts forecast that Provident Financial Services will post 2.36 EPS for the current year.

Insider Activity at Provident Financial Services

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

Institutional Investors Weigh In On Provident Financial Services

Several institutional investors have recently bought and sold shares of the company. Russell Investments Group Ltd. lifted its stake in shares of Provident Financial Services by 1.0% in the fourth quarter. Russell Investments Group Ltd. now owns 45,333 shares of the savings and loans company's stock valued at $895,000 after buying an additional 456 shares in the last quarter. Oregon Public Employees Retirement Fund raised its holdings in shares of Provident Financial Services by 1.7% in the 4th quarter. Oregon Public Employees Retirement Fund now owns 29,888 shares of the savings and loans company's stock worth $590,000 after acquiring an additional 500 shares during the last quarter. Bleakley Financial Group LLC raised its holdings in shares of Provident Financial Services by 3.4% in the 1st quarter. Bleakley Financial Group LLC now owns 19,782 shares of the savings and loans company's stock worth $419,000 after acquiring an additional 652 shares during the last quarter. Farther Finance Advisors LLC lifted its position in Provident Financial Services by 17.4% in the 4th quarter. Farther Finance Advisors LLC now owns 4,752 shares of the savings and loans company's stock valued at $94,000 after acquiring an additional 705 shares in the last quarter. Finally, ProShare Advisors LLC lifted its position in Provident Financial Services by 3.2% in the 4th quarter. ProShare Advisors LLC now owns 25,075 shares of the savings and loans company's stock valued at $495,000 after acquiring an additional 769 shares in the last quarter. Institutional investors own 71.97% of the company's stock.

Key Stories Impacting Provident Financial Services

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

• Positive Sentiment: Q2 earnings and revenue beat estimates. Provident reported earnings of $0.60 per share, ahead of the $0.56 analyst consensus and up from $0.55 a year ago. Revenue reached $234.96 million versus expectations of $225.57 million. Provident Financial Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Core banking trends improved. Net interest income increased to $202.7 million, while net interest margin expanded to 3.48% from 3.40% in the prior quarter and 3.36% a year earlier. Non-interest income also rose year over year, helped by wealth-management and insurance-agency revenue. Provident Financial Services Reports Second Quarter Earnings
• Positive Sentiment: Dividend provides continued income support. The board declared a quarterly cash dividend of $0.24 per share, equivalent to $0.96 annually and an indicated yield of approximately 3.9%. The dividend is payable August 28 to shareholders of record August 14. Provident Financial Services Declares Quarterly Cash Dividend
• Neutral Sentiment: Quarterly net income declined modestly from $79.4 million in the first quarter to $78.1 million, although it increased from $72.0 million a year earlier. The stock’s valuation remains relatively moderate at about 10 times earnings.
• Negative Sentiment: Recent insider activity showed three open-market sales and no purchases over the past six months, a potential cautionary signal, though the transactions may not reflect management’s current outlook.

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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