ServisFirst Bancshares, Inc. (NYSE: SFBS) reported its quarterly earnings on January 13, 2024, demonstrating robust financial performance. The company achieved earnings per share (EPS) of $1.58, exceeding analysts’ expectations of $1.41 by $0.17. Revenue for the quarter reached $162.21 million, surpassing forecasts of $151.82 million, according to FiscalAI.
The financial services provider also showcased impressive profitability metrics, with a net margin of 25.24% and a return on equity of 15.67%. Despite the positive earnings report, shares of ServisFirst Bancshares fell by 2.4% during mid-day trading, closing at $76.36. The trading volume reached 170,903 shares, slightly below the average volume of 216,744 shares.
Stock Performance and Financial Ratios
ServisFirst Bancshares’ stock has seen fluctuations over the past year, with a low of $66.48 and a high of $93.90. The company maintains a market capitalization of $4.17 billion and a price-to-earnings (P/E) ratio of 16.35. Its debt-to-equity ratio stands at 0.04, indicating a solid financial position, with both the quick ratio and current ratio at 0.96.
In addition to its earnings report, ServisFirst Bancshares announced an increase in its quarterly dividend. Shareholders of record on January 2, 2024, received a dividend of $0.38, up from the previous $0.34. This adjustment reflects an annualized dividend of $1.52 and a dividend yield of 2.0%. The company’s dividend payout ratio (DPR) is 32.55%.
Institutional Investor Movements
Recent changes in institutional holdings further highlight interest in ServisFirst Bancshares. Orion Portfolio Solutions LLC increased its stake by 3.9%, now owning 4,926 shares valued at $382,000. Holocene Advisors LP significantly boosted its position by 76.3%, accumulating 5,851 shares worth $454,000. Other hedge funds, such as Brevan Howard Capital Management LP and Quantinno Capital Management LP, also acquired new stakes during the second quarter, reflecting growing confidence in the company.
Overall, hedge funds and institutional investors collectively hold 67.31% of ServisFirst Bancshares’ stock. This interest underscores the firm’s stability and potential for growth within the financial sector.
ServisFirst Bancshares, headquartered in Birmingham, Alabama, operates primarily through its subsidiary, ServisFirst Bank, which caters to small and mid-sized businesses, professionals, and entrepreneurs. The bank offers a broad range of services, including commercial real estate lending, industrial loans, and various deposit products designed to meet clients’ financial needs.
The company’s strong financial results and strategic dividend increase position it favorably for continued growth and investor interest in the coming quarters.
