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

Key Points

• South Plains Financial's stock (NASDAQ:SPFI) experienced unusually high trading volume with approximately 69,166 shares traded, up 1% from the previous session.
• Analysts from Raymond James Financial have increased the price target for SPFI shares to $42.00 from $38.00, maintaining an "outperform" rating.
• The company recently announced a quarterly dividend increase to $0.16 per share, up from $0.15, reflecting a commitment to returning value to shareholders.

South Plains Financial, Inc. (NASDAQ:SPFI - Get Free Report) saw unusually-strong trading volume on Tuesday . Approximately 69,166 shares changed hands during trading, an increase of 1% from the previous session's volume of 68,453 shares.The stock last traded at $36.42 and had previously closed at $36.01.

Wall Street Analysts Forecast Growth

Separately, Raymond James Financial reiterated an "outperform" rating and set a $42.00 price objective (up from $38.00) on shares of South Plains Financial in a research note on Thursday, July 17th.

South Plains Financial Stock Performance

The company has a market cap of $596.33 million, a PE ratio of 11.48 and a beta of 0.72. The company has a current ratio of 0.94, a quick ratio of 0.93 and a debt-to-equity ratio of 0.24. The business's 50 day moving average is $37.07 and its two-hundred day moving average is $35.13.

South Plains Financial (NASDAQ:SPFI - Get Free Report) last announced its quarterly earnings data on Wednesday, July 16th. The company reported $0.86 EPS for the quarter, beating the consensus estimate of $0.77 by $0.09. The business had revenue of $54.67 million for the quarter, compared to the consensus estimate of $52.24 million. South Plains Financial had a return on equity of 12.27% and a net margin of 18.59%. During the same period in the previous year, the business earned $0.66 earnings per share. On average, equities research analysts anticipate that South Plains Financial, Inc. will post 2.85 EPS for the current year.

South Plains Financial Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, August 11th. Shareholders of record on Monday, July 28th will be paid a $0.16 dividend. This represents a $0.64 annualized dividend and a yield of 1.7%. The ex-dividend date is Monday, July 28th. This is a positive change from South Plains Financial's previous quarterly dividend of $0.15. South Plains Financial's dividend payout ratio is currently 20.00%.

Institutional Investors Weigh In On South Plains Financial

A number of institutional investors have recently added to or reduced their stakes in the stock. CWM LLC lifted its holdings in shares of South Plains Financial by 44.8% in the second quarter. CWM LLC now owns 1,678 shares of the company's stock worth $60,000 after buying an additional 519 shares in the last quarter. KLP Kapitalforvaltning AS bought a new stake in South Plains Financial in the 4th quarter valued at $101,000. GAMMA Investing LLC lifted its stake in South Plains Financial by 8,686.1% in the 1st quarter. GAMMA Investing LLC now owns 6,326 shares of the company's stock worth $191,000 after purchasing an additional 6,254 shares in the last quarter. Truist Financial Corp purchased a new stake in South Plains Financial in the 2nd quarter worth $212,000. Finally, Connor Clark & Lunn Investment Management Ltd. bought a new position in shares of South Plains Financial during the 2nd quarter valued at about $224,000. 54.95% of the stock is owned by hedge funds and other institutional investors.

About South Plains Financial

South Plains Financial, Inc operates as a bank holding company for City Bank that provides commercial and consumer financial services to small and medium-sized businesses and individuals. The company operates through two segments, Banking and Insurance. It offers deposit products, including demand deposit accounts, interest-bearing products, savings accounts, and certificate of deposits.