Fintel reports that on August 17, 2023, Piper Sandler initiated coverage of First Business Financial Services (NASDAQ:FBIZ) with a Overweight recommendation.
Analyst Price Forecast Suggests 22.34% Upside
As of August 2, 2023, the average one-year price target for First Business Financial Services is 39.27. The forecasts range from a low of 37.37 to a high of $42.00. The average price target represents an increase of 22.34% from its latest reported closing price of 32.10.
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The projected annual revenue for First Business Financial Services is 144MM, an increase of 7.27%. The projected annual non-GAAP EPS is 4.43.
First Business Financial Services Declares $0.23 Dividend
On July 28, 2023 the company declared a regular quarterly dividend of $0.23 per share ($0.91 annualized). Shareholders of record as of August 7, 2023 received the payment on August 17, 2023. Previously, the company paid $0.23 per share.
At the current share price of $32.10 / share, the stock's dividend yield is 2.83%.
Looking back five years and taking a sample every week, the average dividend yield has been 2.86%, the lowest has been 2.00%, and the highest has been 5.02%. The standard deviation of yields is 0.63 (n=235).
The current dividend yield is 0.03 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 0.20. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.38%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 238 funds or institutions reporting positions in First Business Financial Services. This is unchanged over the last quarter. Average portfolio weight of all funds dedicated to FBIZ is 0.11%, a decrease of 8.65%. Total shares owned by institutions increased in the last three months by 0.08% to 6,233K shares. 
The put/call ratio of FBIZ is 0.00, indicating a bullish outlook.
What are Other Shareholders Doing?
Banc Funds Co holds 459K shares representing 5.52% ownership of the company. No change in the last quarter.
First Business Financial Services holds 363K shares representing 4.36% ownership of the company. In it's prior filing, the firm reported owning 355K shares, representing an increase of 2.31%. The firm decreased its portfolio allocation in FBIZ by 2.76% over the last quarter.
Manufacturers Life Insurance Company, The holds 309K shares representing 3.72% ownership of the company. In it's prior filing, the firm reported owning 308K shares, representing an increase of 0.20%. The firm decreased its portfolio allocation in FBIZ by 4.34% over the last quarter.
M3F holds 282K shares representing 3.40% ownership of the company. No change in the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 205K shares representing 2.47% ownership of the company. No change in the last quarter.
First Business Financial Services Background Information
(This description is provided by the company.)
First Business Financial Services, Inc. is the parent company of First Business Bank. First Business Bank specializes in business banking, including commercial banking and specialty finance, private wealth, and bank consulting services, and through its refined focus delivers unmatched expertise, accessibility, and responsiveness. Specialty finance solutions are delivered through First Business Bank's wholly owned subsidiary First Business Specialty Finance, LLC.
Additional reading:
- Investor Presentation Second Quarter 2023 2 When used in this presentation, and in any other oral statements made with the approval of an authorized executive officer, the words or phrases “may,” “could,” “should,” “hope,” “might,” “believe,” “expect
- First Business Bank Declares Quarterly Cash Dividends
- FIRST BUSINESS BANK REPORTS SECOND QUARTER 2023 NET INCOME OF $8.1 MILLION -- Strong performance driven by robust loan growth, sustained deposit growth, and positive operating leverage --
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