Wall Street Zen Downgrades First Internet Bancorp (NASDAQ:INBK) to Sell

First Internet Bancorp (NASDAQ:INBK) was downgraded by equities research analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a report released on Saturday.

INBK has been the topic of a number of other reports. Weiss Ratings reissued a “sell (d)” rating on shares of First Internet Bancorp in a research report on Monday, December 29th. Hovde Group increased their target price on First Internet Bancorp from $26.00 to $29.00 and gave the stock an “outperform” rating in a research note on Friday. Keefe, Bruyette & Woods lowered their price target on First Internet Bancorp from $25.00 to $23.00 and set a “market perform” rating for the company in a research report on Friday. Piper Sandler cut their price objective on shares of First Internet Bancorp from $24.00 to $23.50 and set a “neutral” rating on the stock in a research report on Friday. Finally, Zacks Research raised shares of First Internet Bancorp from a “strong sell” rating to a “hold” rating in a report on Thursday, December 25th. One investment analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $25.17.

First Internet Bancorp Stock Down 2.0%

NASDAQ:INBK opened at $21.79 on Friday. The company has a debt-to-equity ratio of 1.01, a current ratio of 0.91 and a quick ratio of 0.88. The firm’s 50-day moving average price is $21.06 and its 200-day moving average price is $21.93. The company has a market capitalization of $189.70 million, a PE ratio of -5.41 and a beta of 0.81. First Internet Bancorp has a 1-year low of $17.05 and a 1-year high of $34.21.

First Internet Bancorp (NASDAQ:INBK) last posted its quarterly earnings data on Thursday, January 29th. The bank reported $0.64 EPS for the quarter, topping the consensus estimate of $0.59 by $0.05. The business had revenue of $42.11 million for the quarter, compared to analyst estimates of $32.80 million. First Internet Bancorp had a negative net margin of 10.05% and a negative return on equity of 1.52%. On average, equities analysts predict that First Internet Bancorp will post 4.11 EPS for the current fiscal year.

Insider Activity

In related news, COO Nicole S. Lorch purchased 2,000 shares of First Internet Bancorp stock in a transaction dated Monday, November 17th. The stock was purchased at an average cost of $17.96 per share, for a total transaction of $35,920.00. Following the completion of the purchase, the chief operating officer directly owned 70,206 shares of the company’s stock, valued at $1,260,899.76. The trade was a 2.93% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through the SEC website. 8.00% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Bridgeway Capital Management LLC lifted its holdings in First Internet Bancorp by 1.3% in the 3rd quarter. Bridgeway Capital Management LLC now owns 44,217 shares of the bank’s stock worth $992,000 after purchasing an additional 584 shares in the last quarter. Man Group plc raised its position in First Internet Bancorp by 5.1% during the third quarter. Man Group plc now owns 21,818 shares of the bank’s stock valued at $489,000 after purchasing an additional 1,053 shares during the period. Tower Research Capital LLC TRC lifted its stake in shares of First Internet Bancorp by 202.7% in the 2nd quarter. Tower Research Capital LLC TRC now owns 1,789 shares of the bank’s stock valued at $48,000 after purchasing an additional 1,198 shares during the last quarter. Sowell Financial Services LLC boosted its holdings in shares of First Internet Bancorp by 13.2% in the 4th quarter. Sowell Financial Services LLC now owns 11,122 shares of the bank’s stock worth $232,000 after purchasing an additional 1,301 shares during the period. Finally, First Trust Advisors LP increased its position in shares of First Internet Bancorp by 4.9% during the 2nd quarter. First Trust Advisors LP now owns 31,683 shares of the bank’s stock valued at $852,000 after purchasing an additional 1,474 shares during the last quarter. Institutional investors own 65.46% of the company’s stock.

First Internet Bancorp News Roundup

Here are the key news stories impacting First Internet Bancorp this week:

• Positive Sentiment: Q4 beat — INBK reported $0.64 EPS vs. $0.59 expected and revenue of $42.1M vs. $32.8M consensus; management highlighted strong net interest income (up ~29%) and revenue momentum. This is the primary bullish catalyst supporting upside. Business Wire – Q4 Results
• Positive Sentiment: Analyst upgrade/raise — Hovde Group raised its price target from $26 to $29 and moved to an “outperform” rating, implying material upside from current levels and giving fundamental validation to the quarter’s strength. The Fly – Hovde Raise
• Neutral Sentiment: Earnings call/transcript available — Analysts and investors can review management’s commentary on revenue mix, margin outlook and deposit/loan trends in the call transcript and highlights to gauge sustainability of the quarter’s growth. These details could swing sentiment once parsed. Yahoo Finance – Q4 Highlights
• Neutral Sentiment: Short interest data shows no meaningful short position (reporting shows 0 shares), which appears anomalous and shouldn’t be treated as a clear signal until corrected by exchanges.
• Negative Sentiment: Analyst downgrade/price-target cut — Keefe, Bruyette & Woods lowered its target from $25 to $23 and set a “market perform” rating, reducing a portion of the street’s upside and likely contributing to intraday selling pressure. Benzinga – KBW Cut
• Negative Sentiment: Profitability concerns — despite revenue growth, INBK still reported a negative net margin and negative return on equity for the quarter; longer-term profitability and ROE normalization will be required to justify higher multiples. MarketBeat – Earnings Summary

First Internet Bancorp Company Profile

First Internet Bancorp is the bank holding company for First Internet Bank of Indiana, a pioneer in digital banking in the United States. Established with a focus on online-only operations, the company offers fully integrated, web-based financial solutions without the overhead of physical branches. Headquartered in Indianapolis, Indiana, First Internet Bancorp leverages technology to deliver streamlined banking services to customers across the country.

The company’s core offerings include a range of deposit products such as checking accounts, savings accounts, money market accounts, certificates of deposit (CDs) and individual retirement accounts (IRAs).