Provident Financial Services (NYSE:PFS) Stock Passes Above 200-Day Moving Average - Should You Sell?

Key Points

• Technical breakout: PFS crossed above its 200-day moving average ($20.42), trading as high as $22.43 and last at $22.31 on volume ~877,818 shares.
• Analyst sentiment: The stock carries an average rating of "Buy" with a consensus target of $24.08 after several firms initiated coverage or raised targets to $25.
• Fundamentals and shareholder returns: Quarterly EPS of $0.64 beat estimates and revenue rose 9.6% year-over-year; the company pays a $0.96 annualized dividend (a 4.3% yield) and authorized a $2.81M share repurchase (~0.1% of shares).

Provident Financial Services, Inc (NYSE:PFS - Get Free Report) crossed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $20.42 and traded as high as $22.43. Provident Financial Services shares last traded at $22.3110, with a volume of 877,818 shares changing hands.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on PFS. Piper Sandler began 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. 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. Keefe, Bruyette & Woods lifted their target price on Provident Financial Services from $23.00 to $25.00 and gave the company 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, Weiss Ratings upgraded Provident Financial Services from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Wednesday, April 1st. Two equities research analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, Provident Financial Services presently has an average rating of "Buy" and a consensus target price of $24.08.

Provident Financial Services Stock Down 0.1%

The company has a 50-day moving average of $21.70 and a two-hundred day moving average of $20.42. The company has a market capitalization of $2.92 billion, a PE ratio of 10.00 and a beta of 0.81. The company has a debt-to-equity ratio of 0.90, a current ratio of 1.02 and a quick ratio of 1.02.

Provident Financial Services (NYSE:PFS - Get Free Report) last released its quarterly earnings data 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. The firm had revenue of $225.03 million during the quarter, compared to analyst estimates of $224.08 million. Provident Financial Services had a return on equity of 10.69% and a net margin of 21.06%.The business's quarterly revenue was up 9.6% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.37 earnings per share. Sell-side analysts anticipate that Provident Financial Services, Inc will post 2.14 earnings per share for the current fiscal year.

Provident Financial Services Announces Dividend

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

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

Hedge Funds Weigh In On Provident Financial Services

Hedge funds have recently made changes to their positions in the business. Citizens Financial Group Inc. RI bought a new position in shares of Provident Financial Services in the third quarter worth about $1,182,000. Teacher Retirement System of Texas boosted its stake in shares of Provident Financial Services by 155.9% in the third quarter. Teacher Retirement System of Texas now owns 48,184 shares of the savings and loans company's stock worth $929,000 after acquiring an additional 29,356 shares during the period. Alps Advisors Inc. bought a new position in shares of Provident Financial Services in the third quarter worth about $444,000. American Century Companies Inc. boosted its stake in shares of Provident Financial Services by 40.4% in the third quarter. American Century Companies Inc. now owns 2,308,774 shares of the savings and loans company's stock worth $44,513,000 after acquiring an additional 664,021 shares during the period. Finally, Sound Income Strategies LLC lifted its position in shares of Provident Financial Services by 17.1% in the third quarter. Sound Income Strategies LLC now owns 637,792 shares of the savings and loans company's stock worth $12,265,000 after buying an additional 93,105 shares in the last quarter. Institutional investors own 71.97% of the company's stock.

Provident Financial Services Company Profile

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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