South Plains Financial (NASDAQ:SPFI) Sees Large Volume Increase - Should You Buy?

Key Points

• South Plains Financial shares rose 1.4% to about $44.59, despite trading volume falling 35% from the prior session. The stock trades above its 50-day and 200-day moving averages.
• Analysts maintain a favorable outlook, with six Buy ratings and one Hold rating producing a consensus “Moderate Buy” rating and an average price target of $49.60.
• The company exceeded quarterly earnings and revenue expectations, reporting $0.96 EPS and $64.49 million in revenue, while raising its quarterly dividend to $0.18 per share, implying a 1.6% yield.

South Plains Financial, Inc. (NASDAQ:SPFI - Get Free Report) shares saw strong trading volume on Tuesday . 74,606 shares were traded during trading, a decline of 35% from the previous session's volume of 114,815 shares.The stock last traded at $44.5940 and had previously closed at $44.50.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on SPFI shares. Raymond James Financial restated an "outperform" rating and issued a $50.00 price target on shares of South Plains Financial in a research note on Monday, July 20th. Weiss Ratings raised South Plains Financial from a "buy (b)" rating to a "buy (b+)" rating in a report on Monday, June 29th. Wall Street Zen upgraded South Plains Financial from a "sell" rating to a "hold" rating in a research report on Sunday, May 10th. Benchmark reaffirmed a "buy" rating on shares of South Plains Financial in a research note on Monday, July 20th. Finally, Piper Sandler reduced their price target on South Plains Financial from $48.00 to $46.00 and set an "overweight" rating for the company in a research report on Thursday, April 30th. Six equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, South Plains Financial has a consensus rating of "Moderate Buy" and an average target price of $49.60.

South Plains Financial Trading Up 1.4%

The business has a 50 day simple moving average of $42.04 and a 200-day simple moving average of $41.82. The company has a debt-to-equity ratio of 0.12, a quick ratio of 0.93 and a current ratio of 0.93. The stock has a market capitalization of $863.96 million, a P/E ratio of 12.26 and a beta of 0.46.

South Plains Financial (NASDAQ:SPFI - Get Free Report) last posted its quarterly earnings data on Friday, July 17th. The company reported $0.96 EPS for the quarter, topping analysts' consensus estimates of $0.94 by $0.02. The company had revenue of $64.49 million for the quarter, compared to the consensus estimate of $63.34 million. South Plains Financial had a return on equity of 13.23% and a net margin of 20.79%. On average, analysts predict that South Plains Financial, Inc. will post 3.77 EPS for the current year.

South Plains Financial Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, August 10th. Investors of record on Monday, July 27th will be paid a dividend of $0.18 per share. This is a boost from South Plains Financial's previous quarterly dividend of $0.17. This represents a $0.72 annualized dividend and a yield of 1.6%. The ex-dividend date of this dividend is Monday, July 27th. South Plains Financial's dividend payout ratio (DPR) is currently 19.62%.

Insider Activity

In other news, Director James D. Stein sold 13,504 shares of the stock in a transaction on Monday, May 18th. The stock was sold at an average price of $40.01, for a total transaction of $540,295.04. Following the completion of the sale, the director owned 344,432 shares in the company, valued at approximately $13,780,724.32. This represents a 3.77% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders sold a total of 30,000 shares of company stock valued at $1,204,340 over the last quarter. 24.29% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On South Plains Financial

A number of institutional investors and hedge funds have recently modified their holdings of SPFI. Wedge Capital Management L L P NC acquired a new position in shares of South Plains Financial in the 2nd quarter valued at $2,410,000. Legacy Wealth Management LLC MS purchased a new stake in shares of South Plains Financial in the 2nd quarter valued at approximately $1,659,000. Bank of America Corp DE boosted its stake in South Plains Financial by 26.9% in the 1st quarter. Bank of America Corp DE now owns 21,508 shares of the company's stock worth $901,000 after purchasing an additional 4,559 shares during the period. Janus Henderson Group PLC purchased a new position in South Plains Financial during the 1st quarter worth approximately $201,000. Finally, Amundi purchased a new stake in shares of South Plains Financial in the first quarter valued at $216,000. 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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