Federal Bank has revised its one-year price target upwards to $173.82 per share, indicating a potential upside of 23.32% from the latest closing price of $140.95 per share. This marks a 5.22% increase from the prior target of $165.20 per share.
In addition to this, Federal Bank's dividend yield stands at 0.71%, and its dividend payout ratio is at a low level of 0.07, signifying that only 7% of its earnings are being distributed as dividends.
Over the last quarter, there has been a notable rise in institutional ownership in Federal Bank. The number of funds holding positions increased by 1.45%, with the average portfolio weight dedicated to FEDERALBNK also rising to 0.29%. Total institutional shares owned saw an uptick of 2.95%, reaching 150,624K shares.
Key institutional shareholders include Vanguard Emerging Markets Stock Index Fund Investor Shares with 22,887K shares, Vanguard Total International Stock Index Fund Investor Shares with 22,176K shares, iShares Core MSCI Emerging Markets ETF holding 16,540K shares, DFCEX - Emerging Markets Core Equity Portfolio with 14,518K shares, and Dimensional Emerging Markets Value Fund owning 9,464K shares.
InvestingPro Insights
Building on the recent developments in Federal Bank, InvestingPro's real-time data and expert tips provide further context.
According to InvestingPro data, Federal Bank has a Market Cap of 44.22M USD and a P/E Ratio of 10.92, which is relatively low considering its near-term earnings growth. In the last twelve months as of Q3 2023, the bank's Revenue Growth was 19.8%, indicating a strong financial performance.
InvestingPro Tips suggest that despite being a prominent player in the banking industry, Federal Bank has been quickly burning through cash. This aligns with the data showing a Gross Profit Margin of 70.62%, suggesting some weakness in its gross profit margins.
In addition, two analysts have revised their earnings downwards for the upcoming period, which may have implications for the bank's future performance. Yet, it's noteworthy that the bank has been profitable over the last twelve months, and stockholders have received high returns on book equity.
It's important to note that InvestingPro offers numerous additional tips that can help investors make informed decisions. For instance, the platform provides insights into the company's earnings quality, its valuation, and the trends in its total debt.
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