South Plains Financial, Inc. (NASDAQ:SPFI) Sees Significant Increase in Short Interest

Key Points

• Short interest jumped 47.9% from March 15 to March 31 to 203,674 shares (about 1.7% of the stock) with a short-interest ratio of 1.7 days.
• The company raised its quarterly dividend to $0.17 (a $0.68 annualized yield of 1.5%) and the board approved a $10.0 million buyback plan to repurchase up to 1.5% of shares.
• 54.95% of the stock is held by institutional investors, several hedge funds added or initiated positions recently, and analysts show a "Moderate Buy" consensus with an average target of $46.75.

South Plains Financial, Inc. (NASDAQ:SPFI - Get Free Report) saw a significant growth in short interest in March. As of March 31st, there was short interest totaling 203,674 shares, a growth of 47.9% from the March 15th total of 137,671 shares. Approximately 1.7% of the company's stock are short sold. Based on an average trading volume of 121,795 shares, the short-interest ratio is presently 1.7 days.

Hedge Funds Weigh In On South Plains Financial

A number of hedge funds have recently made changes to their positions in SPFI. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of South Plains Financial by 4.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 7,066 shares of the company's stock valued at $234,000 after buying an additional 312 shares in the last quarter. Empowered Funds LLC increased its position in shares of South Plains Financial by 0.4% during the 1st quarter. Empowered Funds LLC now owns 89,245 shares of the company's stock worth $2,956,000 after purchasing an additional 398 shares in the last quarter. Jane Street Group LLC acquired a new stake in shares of South Plains Financial during the 1st quarter worth about $315,000. Rhumbline Advisers increased its position in shares of South Plains Financial by 14.0% during the 2nd quarter. Rhumbline Advisers now owns 20,622 shares of the company's stock worth $743,000 after purchasing an additional 2,532 shares in the last quarter. Finally, Northwestern Mutual Wealth Management Co. acquired a new stake in shares of South Plains Financial during the 2nd quarter worth about $106,000. Institutional investors and hedge funds own 54.95% of the company's stock.

South Plains Financial Stock Performance

Shares of NASDAQ SPFI traded up $0.11 during trading hours on Tuesday, hitting $44.30. 81,377 shares of the stock were exchanged, compared to its average volume of 88,561. The firm has a market capitalization of $723.95 million, a P/E ratio of 12.88 and a beta of 0.54. South Plains Financial has a one year low of $31.11 and a one year high of $44.58. The company's 50 day moving average is $42.04 and its 200 day moving average is $39.99. The company has a debt-to-equity ratio of 0.12, a current ratio of 0.94 and a quick ratio of 0.94.

South Plains Financial (NASDAQ:SPFI - Get Free Report) last released its earnings results on Monday, January 26th. The company reported $0.90 EPS for the quarter, beating the consensus estimate of $0.84 by $0.06. The firm had revenue of $54.25 million during the quarter, compared to analysts' expectations of $54.11 million. South Plains Financial had a net margin of 19.69% and a return on equity of 12.51%. On average, research analysts expect that South Plains Financial will post 2.85 EPS for the current year.

South Plains Financial Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, February 17th. Investors of record on Monday, February 2nd were paid a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a yield of 1.5%. The ex-dividend date was Monday, February 2nd. This is an increase from South Plains Financial's previous quarterly dividend of $0.16. South Plains Financial's dividend payout ratio is currently 19.77%.

South Plains Financial declared that its board has approved a stock buyback plan on Monday, February 23rd that authorizes the company to buyback $10.00 million in shares. This buyback authorization authorizes the company to purchase up to 1.5% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's board of directors believes its shares are undervalued.

Analysts Set New Price Targets

Several analysts recently issued reports on the stock. Zacks Research downgraded shares of South Plains Financial from a "strong-buy" rating to a "hold" rating in a report on Friday, March 27th. Hovde Group upped their price objective on shares of South Plains Financial from $47.00 to $49.00 and gave the stock an "outperform" rating in a report on Tuesday, January 27th. Piper Sandler raised shares of South Plains Financial from a "neutral" rating to an "overweight" rating and upped their price objective for the stock from $45.00 to $48.00 in a report on Monday, March 2nd. Raymond James Financial upped their price objective on shares of South Plains Financial from $42.00 to $44.00 and gave the stock an "outperform" rating in a report on Wednesday, January 7th. Finally, Weiss Ratings reaffirmed a "buy (b)" rating on shares of South Plains Financial in a report on Monday, December 22nd. Five investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $46.75.

About South Plains Financial

South Plains Financial, Inc is the bank holding company for South Plains Bank, a community-oriented financial institution headquartered in Lubbock, Texas. The company operates as a full-service commercial bank, providing a broad spectrum of banking solutions to individuals, small businesses and agricultural clients. Its principal subsidiary, South Plains Bank, holds state and national banking charters and is subject to regulatory oversight by the Federal Reserve and various state banking authorities.

The company’s product offerings include traditional deposit accounts such as checking, savings and money market accounts, as well as time deposits.

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