Simmons First National (NASDAQ:SFNC) Sees Large Volume Increase - Still a Buy?

Key Points

• Simmons First National reported quarterly EPS of $0.50 and revenue of $248.6 million, both slightly below analyst expectations, which may be pressuring the stock despite 16.1% year-over-year revenue growth.
• The bank’s underlying fundamentals looked solid, with adjusted diluted EPS of $0.50, adjusted ROAA of 1.17%, adjusted ROTCE of 14.37%, and a low 0.20% net charge-off ratio indicating stable credit quality.
• Analysts currently have a Moderate Buy consensus on SFNC with an average target price of $23.00, while the company also continues paying a 3.7% dividend and repurchasing shares.

Simmons First National Corporation (NASDAQ:SFNC - Get Free Report) saw strong trading volume on Friday . Approximately 1,281,609 shares changed hands during mid-day trading, an increase of 1% from the previous session's volume of 1,272,030 shares.The stock last traded at $23.2630 and had previously closed at $23.25.

Key Simmons First National News

Here are the key news stories impacting Simmons First National this week:

• Positive Sentiment: Adjusted diluted EPS came in at $0.50 and adjusted net income improved, with strong adjusted ROAA of 1.17% and adjusted ROTCE of 14.37%, suggesting solid underlying profitability. Simmons First National Corporation Reports Second Quarter Results
• Positive Sentiment: Credit quality remained stable, with a low 0.20% net charge-off ratio and provision expense exceeding net charge-offs, which can be viewed as a sign of manageable loan losses. Simmons First National Corporation Reports Second Quarter Results
• Neutral Sentiment: Net interest margin was unchanged at 3.84%, deposits declined sequentially, and the company continued repurchasing shares and paying a dividend, indicating a steady but not accelerating operating backdrop. Simmons First National Corporation Reports Second Quarter Results
• Negative Sentiment: Reported EPS of $0.46 and revenue of $248.6 million fell short of analyst expectations, which is the main reason investors may be selling the stock despite year-over-year revenue growth. Listen to Conference Call

Analysts Set New Price Targets

A number of equities research analysts have commented on the company. National Bank Financial set a $24.00 target price on Simmons First National in a research report on Monday, June 29th. Weiss Ratings upgraded Simmons First National from a "sell (d+)" rating to a "hold (c-)" rating in a report on Friday, April 24th. DA Davidson reiterated a "neutral" rating and set a $21.00 price target on shares of Simmons First National in a research report on Friday, April 17th. Morgan Stanley reissued a "positive" rating on shares of Simmons First National in a research note on Monday, June 29th. Finally, Zacks Research lowered shares of Simmons First National from a "strong-buy" rating to a "hold" rating in a report on Thursday, March 26th. Two research analysts have rated the stock with a Strong Buy rating, two have issued a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, Simmons First National currently has a consensus rating of "Moderate Buy" and an average target price of $23.00.

Simmons First National Price Performance

The company has a fifty day moving average of $21.94 and a 200-day moving average of $20.78. The company has a current ratio of 0.90, a quick ratio of 0.90 and a debt-to-equity ratio of 0.22. The stock has a market cap of $3.36 billion, a PE ratio of -9.06 and a beta of 0.90.

Simmons First National (NASDAQ:SFNC - Get Free Report) last announced its earnings results on Thursday, July 16th. The bank reported $0.50 EPS for the quarter, missing analysts' consensus estimates of $0.53 by ($0.03). The firm had revenue of $248.57 million for the quarter, compared to analysts' expectations of $250.98 million. Simmons First National had a negative net margin of 25.44% and a positive return on equity of 7.81%. The business's revenue was up 16.1% compared to the same quarter last year. During the same quarter last year, the business earned $0.44 earnings per share. Sell-side analysts expect that Simmons First National Corporation will post 2.08 EPS for the current fiscal year.

Simmons First National Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, July 1st. Stockholders of record on Monday, June 15th were given a dividend of $0.215 per share. This represents a $0.86 annualized dividend and a dividend yield of 3.7%. The ex-dividend date of this dividend was Monday, June 15th. Simmons First National's dividend payout ratio is currently -33.59%.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in SFNC. Hantz Financial Services Inc. increased its position in shares of Simmons First National by 35.6% during the fourth quarter. Hantz Financial Services Inc. now owns 1,884 shares of the bank's stock worth $36,000 after acquiring an additional 495 shares during the period. NewEdge Advisors LLC boosted its holdings in Simmons First National by 2.7% in the fourth quarter. NewEdge Advisors LLC now owns 19,079 shares of the bank's stock valued at $360,000 after purchasing an additional 495 shares in the last quarter. Oregon Public Employees Retirement Fund boosted its holdings in shares of Simmons First National by 1.5% in the 4th quarter. Oregon Public Employees Retirement Fund now owns 33,075 shares of the bank's stock valued at $623,000 after buying an additional 500 shares in the last quarter. Natixis Advisors LLC increased its position in shares of Simmons First National by 2.5% during the fourth quarter. Natixis Advisors LLC now owns 21,065 shares of the bank's stock worth $397,000 after purchasing an additional 513 shares in the last quarter. Finally, EverSource Wealth Advisors LLC increased its position in Simmons First National by 31.9% during the first quarter. EverSource Wealth Advisors LLC now owns 2,339 shares of the bank's stock worth $45,000 after buying an additional 566 shares during the period. Institutional investors and hedge funds own 27.58% of the company's stock.

About Simmons First National

Simmons First National Corporation NASDAQ: SFNC is a bank holding company headquartered in Pine Bluff, Arkansas. Through its primary operating subsidiary, Simmons Bank, the company maintains a network of more than 200 branches across Arkansas, Tennessee, Missouri, Mississippi, Texas, Oklahoma and North Carolina. Simmons First National offers a full suite of financial services to individuals, small businesses and commercial clients, emphasizing relationship-driven community banking.

The company's core business activities span deposit-taking, lending and payment services.

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