AlphaQuest LLC has significantly reduced its holdings in shares of ServisFirst Bancshares, Inc. (NYSE: SFBS) by 41.4% during the third quarter, according to data from Holdings Channel. The firm sold 15,856 shares and now holds 22,488 shares of the financial services provider, valued at approximately $1,811,000 as per its latest filing with the Securities and Exchange Commission (SEC).
Several other institutional investors have also adjusted their positions in ServisFirst Bancshares. Norges Bank acquired a new stake valued at about $47.3 million in the second quarter. Meanwhile, Champlain Investment Partners LLC increased its stake by 15.7%, bringing its total holdings to 2,566,528 shares valued at around $198.9 million. Additionally, First Trust Advisors LP expanded its investment by 231.6% during the same period, holding 326,702 shares now worth $25.3 million. Similarly, Sei Investments Co. boosted its holdings by 135.3%, owning 218,074 shares valued at approximately $16.9 million.
As of the latest reports, institutional investors collectively own 67.31% of ServisFirst’s stock.
Analyst Upgrades and Market Performance
Recent analyses from various research firms have influenced the stock’s outlook. Zacks Research upgraded ServisFirst Bancshares from a “hold” to a “strong-buy” rating in a note released on January 22, 2024. Hovde Group also elevated its rating from “market perform” to “outperform,” setting a price target of $89.00 for the stock. Piper Sandler similarly raised its rating from “neutral” to “overweight,” also recommending a price target of $89.00. Raymond James Financial upgraded its rating to “strong-buy,” suggesting a target price of $95.00.
Currently, two analysts classify the stock with a “strong buy,” while two others have issued a “buy” rating, and one has given it a “hold.” The consensus rating for ServisFirst Bancshares is a “buy” with an average target price of $91.00, according to data from MarketBeat.
ServisFirst Bancshares experienced a slight decline of 0.1% in its stock price, opening at $81.97 on the most recent trading day. The company has a market capitalization of $4.48 billion and a price-to-earnings ratio of 16.20. The stock has fluctuated between a 52-week low of $66.48 and a high of $93.89. The company’s 50-day moving average price stands at $75.21, while the 200-day moving average is $77.84.
Financial Performance and Dividend Increases
ServisFirst Bancshares reported its quarterly earnings on January 20, 2024. The financial services provider posted earnings of $1.58 per share, surpassing the consensus estimate of $1.38 by $0.20. The company recorded a net margin of 26.95% and a return on equity of 16.36%, with total revenue reaching $162.21 million, exceeding analysts’ expectations of $151.82 million.
Recently, ServisFirst Bancshares announced an increase in its quarterly dividend, which was paid on January 13, 2024. Shareholders of record on January 2, 2024 received a dividend of $0.38, up from the previous quarterly dividend of $0.34. This adjustment translates to an annualized dividend of $1.52 and a dividend yield of 1.9%. The current dividend payout ratio stands at 30.04%.
Based in Birmingham, Alabama, ServisFirst Bancshares, Inc. serves as a bank holding company and is the parent of ServisFirst Bank. The bank specializes in providing commercial banking services primarily to small and mid-sized businesses, professionals, and entrepreneurs, offering a range of products including commercial real estate lending and treasury management services.