Gold is 2025’s best performer. UBS sees more upside
On Wednesday, DA Davidson revised its price target for FS Bancorp (NASDAQ:FSBW) shares, bringing it down to $45 from the previous $47, while maintaining a Neutral stock rating. Currently trading at $42.28, the stock sits between its 52-week range of $30.64 to $49.15. The firm's analysts noted that the pre-tax net income for FS Bancorp was in line with their forecasts, but adjustments in the tax calculations caused minor earnings per share (EPS) discrepancies, which were deemed less significant. According to InvestingPro, two analysts have recently revised their earnings estimates downward for the upcoming period.
The report highlighted the positive aspects of the company's recent quarterly performance, which included robust loan growth, consistent credit quality, and well-managed expenses. The company, with a market capitalization of $326 million, achieved 2.6% revenue growth in the last twelve months. Despite the slight reduction in EPS projections and the price target, analysts anticipate an immediate improvement in EPS following the fourth quarter of 2024. Get deeper insights into FS Bancorp's financial health metrics and more exclusive analysis with InvestingPro.
The steady-to-increasing buyback activity was also pointed out as a factor in the analysis. The company has maintained its dividend payments for 12 consecutive years, currently offering a 2.58% yield. DA Davidson's stance on FS Bancorp remains neutral, with the updated price target set at $45. The firm's commentary suggests that while the recent quarter had strong fundamental performance, the adjustment in price target reflects a more conservative outlook on the company's valuation, with the stock trading at a P/E ratio of 8.74x.
In other recent news, FS Bancorp, the parent company of 1st Security Bank of Washington, has completed its previously announced $5 million stock repurchase program and authorized a new buyback of up to $5 million of its common stock. This new repurchase plan is set to occur over a 12-month period. The company has also reported a 3.8% increase in its quarterly cash dividend, rising from $0.26 to $0.27 per share, set to benefit its registered shareholders.
In addition to these financial developments, FS Bancorp has welcomed seasoned banking professional Terri L. Degner to its Board of Directors. Furthermore, the company has announced key executive changes with Matthew D. Mullet promoted to President while retaining his CFO role, Sean McCormick (NYSE:MKC) promoted to Chief Credit Administration Officer, and Robert Nesbitt appointed as Chief Credit Operations Officer.
Finally, FS Bancorp's executives are set to participate in the Raymond (NSE:RYMD) James U.S. Bank and Banking on Technology Conference in Chicago. These are the recent developments at FS Bancorp.
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