Financial Institutions (NASDAQ:FISI) Cut to Hold at Wall Street Zen

Financial Institutions (NASDAQ:FISI) was downgraded by equities research analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research note issued to investors on Saturday.

Other analysts have also recently issued reports about the company. Piper Sandler reiterated a “neutral” rating and set a $34.00 price target on shares of Financial Institutions in a research report on Wednesday, December 17th. Weiss Ratings reissued a “hold (c-)” rating on shares of Financial Institutions in a research note on Monday, December 29th. Keefe, Bruyette & Woods raised their target price on Financial Institutions from $34.00 to $35.00 and gave the stock an “outperform” rating in a research report on Monday, October 27th. Finally, Zacks Research raised Financial Institutions to a “hold” rating in a research report on Thursday, December 18th. One research analyst has rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $33.67.

Financial Institutions Stock Performance

Financial Institutions stock opened at $32.94 on Friday. The company has a debt-to-equity ratio of 0.19, a quick ratio of 0.87 and a current ratio of 0.87. Financial Institutions has a one year low of $20.97 and a one year high of $33.73. The stock’s 50 day moving average price is $31.70 and its 200 day moving average price is $28.76. The firm has a market capitalization of $663.08 million, a PE ratio of 9.12 and a beta of 0.70.

Financial Institutions (NASDAQ:FISI) last issued its quarterly earnings results on Thursday, January 29th. The bank reported $0.96 EPS for the quarter, beating analysts’ consensus estimates of $0.95 by $0.01. Financial Institutions had a return on equity of 12.75% and a net margin of 19.81%.The firm had revenue of $64.12 million during the quarter, compared to the consensus estimate of $62.99 million. As a group, sell-side analysts expect that Financial Institutions will post 3.3 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of FISI. Daytona Street Capital LLC acquired a new stake in shares of Financial Institutions during the fourth quarter worth approximately $249,000. Palisades Investment Partners LLC increased its holdings in shares of Financial Institutions by 2.5% in the fourth quarter. Palisades Investment Partners LLC now owns 140,942 shares of the bank’s stock worth $4,434,000 after acquiring an additional 3,420 shares in the last quarter. SG Americas Securities LLC bought a new position in Financial Institutions during the 4th quarter worth about $260,000. JPMorgan Chase & Co. grew its position in Financial Institutions by 10.2% in the third quarter. JPMorgan Chase & Co. now owns 377,740 shares of the bank’s stock valued at $10,275,000 after purchasing an additional 34,906 shares in the last quarter. Finally, Advisory Services Network LLC acquired a new stake in shares of Financial Institutions in the 3rd quarter valued at approximately $53,000. 60.45% of the stock is currently owned by institutional investors and hedge funds.

Financial Institutions News Summary

Here are the key news stories impacting Financial Institutions this week:

• Positive Sentiment: Q4 beat on EPS and revenue; profitability restored — FISI reported Q4 net income of ~$20.0M and EPS of $0.96, modestly topping consensus and marking a sharp turnaround from a large loss a year earlier. The result reinforces the company’s return to profitability and supports analyst confidence. Business Insider: Net Income Report
• Positive Sentiment: Full‑year turnaround, record net interest income and margin expansion — FY2025 net income available to common shareholders was ~$73.4M vs. a FY2024 loss; net interest income hit record quarterly and annual levels and full‑year NIM expanded materially year‑over‑year. Those trends improve core earnings durability. QuiverQuant: Q4 & FY2025 Results
• Positive Sentiment: Capital and rating improvement via subordinated notes; buybacks and dividend raise — The company completed an $80M private placement of subordinated notes (BBB‑/Stable from Kroll), used proceeds to redeem older debt, repurchased ~336,869 shares in Q4 and raised the quarterly dividend ~3%. These moves signal stronger capital flexibility and shareholder returns. QuiverQuant: Capital/Dividend/Buyback Details
• Neutral Sentiment: Management remarks and investor materials available — The full earnings presentation and call transcript were posted (useful for detail on strategy, guidance and deposit/loan trends). Review management commentary for color on deposit retention and 2026 priorities. Seeking Alpha: Q4 Presentation Seeking Alpha: Call Transcript
• Neutral Sentiment: Short‑interest data shows essentially no reported short interest (data appears anomalous); not currently a clear driver. (Report dated Jan 28.)
• Negative Sentiment: Quarterly deposit decline and higher short‑term borrowings — Total deposits fell ~$151.5M QoQ (seasonality and fewer brokered deposits), and short‑term borrowings rose; deposit retention/acquisition is flagged as a 2026 focus area and could pressure funding costs if trends continue. QuiverQuant: Deposit/Funding Details
• Negative Sentiment: Credit costs and allowance movements — Net charge‑offs and provision levels ticked up modestly (net charge‑offs annualized ~0.24% for 2025) while the allowance for credit losses on loans edged down to ~1.02% of loans. Investors should monitor credit trending as loans grow. QuiverQuant: Asset Quality

Financial Institutions Company Profile

Financial Institutions, Inc (NASDAQ: FISI) is a non-diversified, closed-end management investment company that seeks to provide tax-advantaged income to shareholders. The company invests primarily in investment-grade municipal obligations issued by states, municipalities and government agencies across the United States. By focusing on high-credit-quality bonds, Financial Institutions aims to deliver current income that is exempt from federal income tax.

In constructing its portfolio, the company may also utilize money market instruments and repurchase agreements to manage liquidity and facilitate efficient settlement.