ServisFirst Bancshares (NYSE:SFBS) Releases Quarterly Earnings Results, Misses Expectations By $0.09 EPS

Key Points

• ServisFirst Bancshares reported quarterly earnings of $1.30 EPS, missing analysts' expectations by $0.09.
• The company declared a quarterly dividend of $0.335, translating to an annualized yield of 1.8% with a payout ratio of 29.32%.
• Brokerage analysts have shifted ratings on ServisFirst Bancshares, with Zacks downgrading it to "hold" while Piper Sandler raised the target price to $90.

ServisFirst Bancshares (NYSE:SFBS - Get Free Report) announced its quarterly earnings results on Monday. The financial services provider reported $1.30 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.39 by ($0.09), Zacks reports. ServisFirst Bancshares had a return on equity of 15.47% and a net margin of 24.62%.

ServisFirst Bancshares Stock Performance

Shares of NYSE SFBS traded up $1.20 during trading on Monday, hitting $76.41. The company had a trading volume of 232,719 shares, compared to its average volume of 231,149. ServisFirst Bancshares has a 12 month low of $66.48 and a 12 month high of $101.37. The company has a debt-to-equity ratio of 0.04, a quick ratio of 0.96 and a current ratio of 0.96. The firm has a market capitalization of $4.17 billion, a P/E ratio of 16.72 and a beta of 0.85. The stock has a 50 day simple moving average of $83.21 and a 200 day simple moving average of $78.33.

ServisFirst Bancshares Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, October 10th. Shareholders of record on Wednesday, October 1st were given a $0.335 dividend. The ex-dividend date was Wednesday, October 1st. This represents a $1.34 dividend on an annualized basis and a yield of 1.8%. ServisFirst Bancshares's dividend payout ratio is presently 29.32%.

Analysts Set New Price Targets

Several brokerages have commented on SFBS. Zacks Research downgraded shares of ServisFirst Bancshares from a "strong-buy" rating to a "hold" rating in a report on Monday, September 22nd. Piper Sandler raised their target price on shares of ServisFirst Bancshares from $84.00 to $90.00 and gave the company a "neutral" rating in a research note on Tuesday, July 22nd. Raymond James Financial raised shares of ServisFirst Bancshares from a "market perform" rating to an "outperform" rating and set a $95.00 price target on the stock in a research note on Tuesday, October 7th. Finally, Weiss Ratings reaffirmed a "hold (c+)" rating on shares of ServisFirst Bancshares in a research note on Wednesday, October 8th. One equities research analyst has rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, ServisFirst Bancshares currently has a consensus rating of "Hold" and an average target price of $92.00.

Insider Activity at ServisFirst Bancshares

In related news, CEO Thomas A. Broughton sold 22,206 shares of ServisFirst Bancshares stock in a transaction on Friday, August 22nd. The shares were sold at an average price of $87.99, for a total transaction of $1,953,905.94. Following the transaction, the chief executive officer owned 592,588 shares in the company, valued at approximately $52,141,818.12. The trade was a 3.61% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 6.70% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Royal Bank of Canada lifted its stake in shares of ServisFirst Bancshares by 17.2% in the 1st quarter. Royal Bank of Canada now owns 16,815 shares of the financial services provider's stock valued at $1,390,000 after purchasing an additional 2,465 shares during the last quarter. AQR Capital Management LLC raised its holdings in ServisFirst Bancshares by 70.9% during the 1st quarter. AQR Capital Management LLC now owns 8,989 shares of the financial services provider's stock valued at $742,000 after buying an additional 3,730 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in ServisFirst Bancshares by 4.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 30,194 shares of the financial services provider's stock worth $2,494,000 after buying an additional 1,308 shares during the last quarter. Millennium Management LLC increased its position in ServisFirst Bancshares by 107.3% during the first quarter. Millennium Management LLC now owns 146,442 shares of the financial services provider's stock valued at $12,096,000 after acquiring an additional 75,799 shares during the last quarter. Finally, Caxton Associates LLP bought a new position in ServisFirst Bancshares during the first quarter valued at $204,000. Hedge funds and other institutional investors own 67.31% of the company's stock.

ServisFirst Bancshares Company Profile

ServisFirst Bancshares, Inc operates as the bank holding company for ServisFirst Bank that provides various banking services to individual and corporate customers. It accepts demand, time, savings, and other deposits; checking, money market, and IRA accounts; and certificates of deposit. The company's loan products include commercial lending products, including seasonal, bridge, and term loans for working capital, expansion of the business, acquisition of property, and plant and equipment, as well as commercial lines of credit; commercial real estate loans, construction and development loans, and residential real estate loans; and consumer loans, such as home equity loans, vehicle financing, loans secured by deposits, and secured and unsecured personal loans.

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