ServisFirst Bancshares (NYSE:SFBS) Shares Gap Up on Strong Earnings

Shares of ServisFirst Bancshares, Inc. (NYSE:SFBS) gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $76.33, but opened at $82.21. ServisFirst Bancshares shares last traded at $86.43, with a volume of 177,762 shares trading hands.

The financial services provider reported $1.58 EPS for the quarter, topping analysts’ consensus estimates of $1.38 by $0.20. ServisFirst Bancshares had a net margin of 26.95% and a return on equity of 16.36%. The firm had revenue of $162.21 million for the quarter, compared to analysts’ expectations of $151.82 million.

ServisFirst Bancshares Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, January 13th. Stockholders of record on Friday, January 2nd were given a dividend of $0.38 per share. This represents a $1.52 dividend on an annualized basis and a dividend yield of 1.8%. This is a boost from ServisFirst Bancshares’s previous quarterly dividend of $0.34. The ex-dividend date of this dividend was Friday, January 2nd. ServisFirst Bancshares’s dividend payout ratio is 30.04%.

Key Headlines Impacting ServisFirst Bancshares

Here are the key news stories impacting ServisFirst Bancshares this week:

• Positive Sentiment: Q4 earnings beat — SFBS reported Q4 results that topped consensus (EPS and revenue outperformance) and management highlighted margin expansion and disciplined loan pricing as drivers of earnings upside. This is the primary catalyst for the stock’s positive bias after the print. ServisFirst Bancshares Q4 2025 earnings call transcript
• Positive Sentiment: Loan growth and NIM expansion — Management and analysts highlighted ~12% annualized loan growth in Q4, C&I loan growth, and net interest margin expansion (reported NIM improvement) driven by loan pricing, higher fee income and deposit-cost control. Those core banking metrics point to sustainable earnings improvement. Why ServisFirst Bancshares Remains One Of My Preferred Regional Banks
• Positive Sentiment: Analyst upgrades — Raymond James moved SFBS to “strong-buy” with a $95 target and Piper Sandler upgraded to “overweight” with an $89 target. Upgrades and higher targets support further upside and likely amplified buying after the quarterly release. Analyst upgrade coverage
• Neutral Sentiment: Depth of coverage and management commentary — Multiple transcripts and deep-dive pieces summarize management’s plan to push into Texas and sustain margin gains; these items are informational and reinforce the earnings message but do not introduce new surprises. SFBS Q4 deep dive
• Negative Sentiment: Valuation and near-term upside limits — With a P/E around 17 and the stock trading close to its 52‑week high, some investors may be cautious about near-term multiple expansion; elevated expectations set by the beat and upgrades increase the bar for future quarters. (Background data: market metrics and recent trading range.)

Analysts Set New Price Targets

Several research analysts recently issued reports on SFBS shares. Raymond James Financial raised ServisFirst Bancshares from an “outperform” rating to a “strong-buy” rating and set a $95.00 price objective on the stock in a research note on Wednesday. Weiss Ratings reiterated a “hold (c)” rating on shares of ServisFirst Bancshares in a report on Monday, December 29th. Piper Sandler raised ServisFirst Bancshares from a “neutral” rating to an “overweight” rating and set a $89.00 price target on the stock in a research report on Wednesday. Zacks Research upgraded ServisFirst Bancshares from a “strong sell” rating to a “hold” rating in a research note on Friday, December 19th. Finally, Hovde Group upgraded ServisFirst Bancshares from a “market perform” rating to an “outperform” rating and set a $89.00 price objective for the company in a report on Friday, December 19th. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $91.00.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of SFBS. Hantz Financial Services Inc. raised its stake in shares of ServisFirst Bancshares by 214.1% during the 3rd quarter. Hantz Financial Services Inc. now owns 311 shares of the financial services provider’s stock worth $25,000 after acquiring an additional 212 shares in the last quarter. State of Wyoming purchased a new position in ServisFirst Bancshares in the second quarter worth $29,000. Ameritas Advisory Services LLC acquired a new position in shares of ServisFirst Bancshares during the second quarter worth $30,000. Danske Bank A S acquired a new position in shares of ServisFirst Bancshares during the third quarter worth $32,000. Finally, Fifth Third Bancorp lifted its holdings in shares of ServisFirst Bancshares by 105.1% during the 3rd quarter. Fifth Third Bancorp now owns 566 shares of the financial services provider’s stock valued at $46,000 after purchasing an additional 290 shares during the last quarter. Hedge funds and other institutional investors own 67.31% of the company’s stock.

ServisFirst Bancshares Price Performance

The company has a current ratio of 0.97, a quick ratio of 0.96 and a debt-to-equity ratio of 0.02. The stock has a market cap of $4.73 billion, a price-to-earnings ratio of 17.13 and a beta of 0.93. The stock has a 50-day moving average price of $73.73 and a two-hundred day moving average price of $77.88.

ServisFirst Bancshares Company Profile

ServisFirst Bancshares, Inc is a bank holding company headquartered in Birmingham, Alabama, and the parent of ServisFirst Bank. The company specializes in commercial banking services, catering primarily to small and mid-sized businesses, professionals and entrepreneurs. Its product portfolio encompasses commercial real estate lending, commercial and industrial loans, deposit accounts, treasury management and other ancillary banking products designed to meet the financial needs of its clients.

ServisFirst Bank offers a full suite of deposit products, including interest-bearing checking, money market accounts and certificates of deposit, as well as a variety of loan products.