Provident Financial Services (NYSE:PFS) Stock Passes Above 200 Day Moving Average - What's Next?

Key Points

• Technical breakout: PFS climbed above its 200-day moving average of $20.30, trading as high as $21.51 and last at $21.50 on heavy volume (~597,588), suggesting a potential bullish shift.
• Analyst optimism: The stock carries a MarketBeat consensus rating of Buy with an average target of $24.08, and several firms (KBW, RBC, Piper Sandler) have issued $25 targets or upgrades.
• Solid fundamentals and shareholder returns: Q4 EPS of $0.64 beat estimates ($0.56) and revenue rose 9.6% YoY; the company has a PE ~9.6, ROE ~10.7%, a 4.5% dividend, and a $2.81M buyback authorization (~0.1% of shares).

Provident Financial Services, Inc (NYSE:PFS - Get Free Report) passed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $20.30 and traded as high as $21.51. Provident Financial Services shares last traded at $21.50, with a volume of 597,588 shares.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on PFS. Keefe, Bruyette & Woods raised their target price on Provident Financial Services from $23.00 to $25.00 and gave the stock an "outperform" rating in a research note on Thursday, January 29th. DA Davidson began coverage on Provident Financial Services in a research note on Wednesday, February 25th. They issued a "neutral" rating and a $25.00 target price on the stock. Weiss Ratings raised Provident Financial Services from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Wednesday, April 1st. Royal Bank Of Canada set a $25.00 target price on Provident Financial Services in a research note on Thursday, January 29th. Finally, Piper Sandler initiated coverage on Provident Financial Services in a research note on Monday, March 16th. They issued an "overweight" rating and a $25.00 target price on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, three have given a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Buy" and a consensus target price of $24.08.

Provident Financial Services Stock Up 0.9%

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's fifty day simple moving average is $21.73 and its 200 day simple moving average is $20.30. The firm has a market capitalization of $2.81 billion, a PE ratio of 9.64 and a beta of 0.81.

Provident Financial Services (NYSE:PFS - Get Free Report) last issued its quarterly earnings data on Wednesday, January 28th. The savings and loans company reported $0.64 EPS for the quarter, topping the consensus estimate of $0.56 by $0.08. Provident Financial Services had a net margin of 21.06% and a return on equity of 10.69%. The business had revenue of $225.03 million during the quarter, compared to analyst estimates of $224.08 million. During the same period last year, the business posted $0.37 earnings per share. Provident Financial Services's quarterly revenue was up 9.6% compared to the same quarter last year. Analysts anticipate that Provident Financial Services, Inc will post 2.14 earnings per share for the current fiscal year.

Provident Financial Services Dividend Announcement

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 $0.24 dividend. The ex-dividend date was Friday, February 13th. This represents a $0.96 annualized dividend and a yield of 4.5%. Provident Financial Services's dividend payout ratio (DPR) is 43.05%.

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

Hedge Funds Weigh In On Provident Financial Services

Several large investors have recently made changes to their positions in the business. Hsbc Holdings PLC lifted its holdings in shares of Provident Financial Services by 2.3% during the fourth quarter. Hsbc Holdings PLC now owns 137,468 shares of the savings and loans company's stock valued at $2,709,000 after purchasing an additional 3,110 shares during the last quarter. World Investment Advisors purchased a new position in shares of Provident Financial Services during the fourth quarter valued at approximately $401,000. Meadowbrook Advisors Group LLC purchased a new position in shares of Provident Financial Services during the fourth quarter valued at approximately $393,000. Sit Investment Associates Inc. lifted its holdings in shares of Provident Financial Services by 10.8% during the fourth quarter. Sit Investment Associates Inc. now owns 55,450 shares of the savings and loans company's stock valued at $1,095,000 after purchasing an additional 5,425 shares during the last quarter. Finally, Mercer Global Advisors Inc. ADV purchased a new position in shares of Provident Financial Services during the fourth quarter valued at approximately $216,000. 71.97% of the stock is currently owned by hedge funds and other institutional investors.

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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