South Plains Financial (NASDAQ:SPFI) Reaches New 1-Year High - What's Next?

Key Points

• Shares of South Plains Financial hit a new 52-week high“Moderate Buy” with an average price target of $46.75.
• The company posted a quarterly EPS beat ($0.90 vs. $0.84) and slight revenue upside, with solid profitability metrics (ROE 12.51%, net margin 19.69%) and a trailing P/E of 12.94.
• Management is returning capital via a raised quarterly dividend ($0.17; 1.5% yield) and a $10 million buyback authorization (about 1.5% of shares), signaling confidence in the stock.

South Plains Financial, Inc. (NASDAQ:SPFI - Get Free Report)'s share price hit a new 52-week high during mid-day trading on Thursday . The stock traded as high as $44.00 and last traded at $44.33, with a volume of 13656 shares traded. The stock had previously closed at $43.81.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on SPFI. Zacks Research downgraded South Plains Financial from a "strong-buy" rating to a "hold" rating in a report on Friday, March 27th. Keefe, Bruyette & Woods increased their price target on South Plains Financial from $45.00 to $46.00 and gave the stock an "outperform" rating in a report on Friday, December 12th. Raymond James Financial increased their price target on South Plains Financial from $42.00 to $44.00 and gave the stock an "outperform" rating in a report on Wednesday, January 7th. Weiss Ratings restated a "buy (b)" rating on shares of South Plains Financial in a report on Monday, December 22nd. Finally, Hovde Group increased their price target on South Plains Financial from $47.00 to $49.00 and gave the stock an "outperform" rating in a report on Tuesday, January 27th. Five analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $46.75.

South Plains Financial Stock Performance

The company has a quick ratio of 0.94, a current ratio of 0.94 and a debt-to-equity ratio of 0.12. The firm has a market capitalization of $726.82 million, a P/E ratio of 12.94 and a beta of 0.54. The stock has a fifty day moving average of $41.85 and a 200-day moving average of $39.84.

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

South Plains Financial Increases Dividend

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

South Plains Financial declared that its Board of Directors has approved a stock repurchase 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 shares through open market purchases. Shares buyback plans are usually a sign that the company's board believes its stock is undervalued.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of SPFI. Gabelli Funds LLC acquired a new position in South Plains Financial during the second quarter valued at approximately $4,708,000. JPMorgan Chase & Co. boosted its position in South Plains Financial by 15.0% during the fourth quarter. JPMorgan Chase & Co. now owns 437,995 shares of the company's stock valued at $16,994,000 after purchasing an additional 57,008 shares during the last quarter. Elizabeth Park Capital Advisors Ltd. acquired a new position in South Plains Financial during the third quarter valued at approximately $1,624,000. First Trust Advisors LP boosted its position in South Plains Financial by 349.0% during the third quarter. First Trust Advisors LP now owns 46,503 shares of the company's stock valued at $1,797,000 after purchasing an additional 36,147 shares during the last quarter. Finally, Two Sigma Investments LP boosted its position in South Plains Financial by 63.3% during the third quarter. Two Sigma Investments LP now owns 76,792 shares of the company's stock valued at $2,968,000 after purchasing an additional 29,767 shares during the last quarter. 54.95% of the stock is owned by institutional investors and hedge funds.

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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