ServisFirst Bancshares (NYSE:SFBS) Issues Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Key Points

• Earnings beat by $0.01: ServisFirst reported EPS of $1.54 versus $1.53 expected, while revenue missed at $158.99 million versus $162.07 million; the bank posted a 16.36% return on equity and a 26.95% net margin.
• Dividend paid: The company paid a $0.38 quarterly dividend (annualized $1.52), implying a 1.9% yield and a 30.04% payout ratio.
• Investor sentiment and valuation: Shares trade near $78 with a $4.27 billion market cap and a 14.8x P/E, institutions own about 67% after sizable stake increases, and analysts show a consensus "Moderate Buy" with a $93.67 target.

ServisFirst Bancshares (NYSE:SFBS - Get Free Report) released its quarterly earnings data on Monday. The financial services provider reported $1.54 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.53 by $0.01, FiscalAI reports. The business had revenue of $158.99 million for the quarter, compared to analysts' expectations of $162.07 million. ServisFirst Bancshares had a return on equity of 16.36% and a net margin of 26.95%.

ServisFirst Bancshares Stock Performance

Shares of NYSE:SFBS traded up $0.22 during midday trading on Monday, hitting $78.08. The company had a trading volume of 185,492 shares, compared to its average volume of 274,949. The company has a debt-to-equity ratio of 0.02, a current ratio of 0.97 and a quick ratio of 0.97. The company has a market cap of $4.27 billion, a price-to-earnings ratio of 14.83 and a beta of 0.89. ServisFirst Bancshares has a 12-month low of $66.48 and a 12-month high of $90.64. The company has a fifty day moving average of $78.29 and a two-hundred day moving average of $76.19.

ServisFirst Bancshares Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, April 13th. Stockholders of record on Wednesday, April 1st were paid a $0.38 dividend. This represents a $1.52 annualized dividend and a dividend yield of 1.9%. The ex-dividend date was Wednesday, April 1st. ServisFirst Bancshares's dividend payout ratio is 30.04%.

Institutional Investors Weigh In On ServisFirst Bancshares

Several hedge funds and other institutional investors have recently modified their holdings of the stock. State Street Corp increased its stake in shares of ServisFirst Bancshares by 3.5% in the 4th quarter. State Street Corp now owns 2,463,986 shares of the financial services provider's stock worth $176,890,000 after purchasing an additional 82,912 shares in the last quarter. JPMorgan Chase & Co. increased its stake in shares of ServisFirst Bancshares by 12.2% in the 4th quarter. JPMorgan Chase & Co. now owns 1,079,628 shares of the financial services provider's stock worth $77,506,000 after purchasing an additional 117,464 shares in the last quarter. NewEdge Advisors LLC increased its stake in shares of ServisFirst Bancshares by 307,426.8% in the 4th quarter. NewEdge Advisors LLC now owns 919,505 shares of the financial services provider's stock worth $66,011,000 after purchasing an additional 919,206 shares in the last quarter. Wasatch Advisors LP increased its stake in shares of ServisFirst Bancshares by 31.6% in the 3rd quarter. Wasatch Advisors LP now owns 667,781 shares of the financial services provider's stock worth $53,776,000 after purchasing an additional 160,465 shares in the last quarter. Finally, First Trust Advisors LP increased its stake in shares of ServisFirst Bancshares by 8.3% in the 4th quarter. First Trust Advisors LP now owns 571,853 shares of the financial services provider's stock worth $41,053,000 after purchasing an additional 43,842 shares in the last quarter. 67.31% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several equities analysts recently issued reports on SFBS shares. Hovde Group upped their price objective on ServisFirst Bancshares from $92.00 to $97.00 and gave the company an "outperform" rating in a research report on Friday, February 27th. Piper Sandler upgraded shares of ServisFirst Bancshares from a "neutral" rating to an "overweight" rating and set a $89.00 target price for the company in a research note on Wednesday, January 21st. Zacks Research lowered shares of ServisFirst Bancshares from a "strong-buy" rating to a "hold" rating in a research note on Monday, March 23rd. Weiss Ratings reiterated a "hold (c+)" rating on shares of ServisFirst Bancshares in a research note on Friday, April 10th. Finally, Raymond James Financial upgraded shares of ServisFirst Bancshares from an "outperform" rating to a "strong-buy" rating and set a $95.00 target price for the company in a research note on Wednesday, January 21st. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $93.67.

ServisFirst Bancshares Company Profile

ServisFirst Bancshares, Inc is a bank holding company headquartered in Birmingham, Alabama, and the parent of ServisFirst Bank. The company specializes in commercial banking services, catering primarily to small and mid-sized businesses, professionals and entrepreneurs. Its product portfolio encompasses commercial real estate lending, commercial and industrial loans, deposit accounts, treasury management and other ancillary banking products designed to meet the financial needs of its clients.

ServisFirst Bank offers a full suite of deposit products, including interest-bearing checking, money market accounts and certificates of deposit, as well as a variety of loan products.

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