S&T Bancorp (NASDAQ:STBA) Posts Quarterly Earnings Results, Beats Expectations By $0.07 EPS

Key Points

• $0.94 EPS reported for the quarter, beating consensus by $0.07 while revenue came in at $102.08 million, slightly below expectations; the company posted a 9.25% return on equity and a 23.61% net margin.
• The Board approved a $100.00 million stock repurchase plan (up to about 6.2% of shares) and the company paid a $0.36 quarterly dividend (annualized $1.44) for a 3.3% yield and a 41.14% payout ratio.
• Shares traded around $43.35 with a market cap of $1.59 billion and a P/E of 12.37; analysts have a consensus rating of Hold and a $44.40 target price.

S&T Bancorp (NASDAQ:STBA - Get Free Report) released its earnings results on Thursday. The financial services provider reported $0.94 EPS for the quarter, topping analysts' consensus estimates of $0.87 by $0.07, FiscalAI reports. The company had revenue of $102.08 million for the quarter, compared to analysts' expectations of $103.62 million. S&T Bancorp had a return on equity of 9.25% and a net margin of 23.61%.

S&T Bancorp Price Performance

NASDAQ:STBA traded down $0.06 during mid-day trading on Thursday, hitting $43.35. 25,728 shares of the stock traded hands, compared to its average volume of 234,061. The business's 50-day moving average price is $42.39 and its 200 day moving average price is $40.60. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.07. The company has a market cap of $1.59 billion, a PE ratio of 12.37 and a beta of 0.86. S&T Bancorp has a 12-month low of $34.01 and a 12-month high of $44.91.

S&T Bancorp Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, February 26th. Stockholders of record on Thursday, February 12th were given a $0.36 dividend. This represents a $1.44 dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date was Thursday, February 12th. S&T Bancorp's dividend payout ratio (DPR) is 41.14%.

S&T Bancorp declared that its Board of Directors has approved a stock repurchase plan on Thursday, January 22nd that permits the company to buyback $100.00 million in shares. This buyback authorization permits the financial services provider to reacquire up to 6.2% of its shares through open market purchases. Shares buyback plans are usually an indication that the company's management believes its shares are undervalued.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. State Street Corp increased its holdings in shares of S&T Bancorp by 3.7% in the fourth quarter. State Street Corp now owns 1,723,385 shares of the financial services provider's stock worth $67,815,000 after purchasing an additional 61,800 shares during the period. Charles Schwab Investment Management Inc. boosted its stake in S&T Bancorp by 1.3% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,624,436 shares of the financial services provider's stock valued at $63,922,000 after buying an additional 20,411 shares during the period. Geode Capital Management LLC grew its position in S&T Bancorp by 0.4% during the fourth quarter. Geode Capital Management LLC now owns 958,685 shares of the financial services provider's stock worth $37,729,000 after buying an additional 3,388 shares in the last quarter. Millennium Management LLC grew its position in S&T Bancorp by 33.5% during the third quarter. Millennium Management LLC now owns 459,153 shares of the financial services provider's stock worth $17,260,000 after buying an additional 115,333 shares in the last quarter. Finally, Bridgeway Capital Management LLC increased its stake in S&T Bancorp by 2.5% in the 3rd quarter. Bridgeway Capital Management LLC now owns 299,373 shares of the financial services provider's stock worth $11,253,000 after acquiring an additional 7,342 shares during the last quarter. 65.22% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of research firms recently issued reports on STBA. Hovde Group raised their price objective on shares of S&T Bancorp from $44.00 to $47.00 and gave the stock a "market perform" rating in a report on Monday, February 23rd. Weiss Ratings reissued a "buy (b-)" rating on shares of S&T Bancorp in a research report on Monday, December 29th. Janney Montgomery Scott upgraded shares of S&T Bancorp from a "neutral" rating to a "buy" rating and set a $46.00 price target for the company in a research note on Monday, January 26th. Wall Street Zen raised shares of S&T Bancorp from a "sell" rating to a "hold" rating in a report on Sunday, March 22nd. Finally, Zacks Research lowered S&T Bancorp from a "strong-buy" rating to a "hold" rating in a report on Friday, March 6th. Two analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $44.40.

S&T Bancorp Company Profile

S&T Bancorp, Inc is a bank holding company headquartered in Indiana, Pennsylvania, serving as the parent of S&T Bank. Established as a banking organization in 1902 with the holding company formation following in the early 1980s, S&T Bancorp has built its reputation on delivering community-oriented financial services. The company operates under the NASDAQ ticker STBA, maintaining a focus on personalized banking solutions and local decision-making.

The company's main business activities encompass a full suite of retail and commercial banking products.

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