Enterprise Financial Services (NASDAQ:EFSC) Shares Gap Down Following Weak Earnings

Enterprise Financial Services Corporation (NASDAQ:EFSC)’s share price gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $65.68, but opened at $59.61. Enterprise Financial Services shares last traded at $63.29, with a volume of 164,617 shares.

The bank reported $1.13 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.33 by ($0.20). The firm had revenue of $182.19 million for the quarter, compared to analyst estimates of $189.15 million. Enterprise Financial Services had a net margin of 18.72% and a return on equity of 9.73%.

Enterprise Financial Services Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th will be paid a dividend of $0.35 per share. The ex-dividend date is Tuesday, September 15th. This is a positive change from Enterprise Financial Services’s previous quarterly dividend of $0.34. This represents a $1.40 annualized dividend and a yield of 2.1%. Enterprise Financial Services’s payout ratio is presently 25.66%.

Analyst Ratings Changes

A number of research analysts have recently issued reports on the stock. Wall Street Zen downgraded shares of Enterprise Financial Services from a “hold” rating to a “sell” rating in a research report on Saturday, July 18th. Keefe, Bruyette & Woods lifted their price target on shares of Enterprise Financial Services from $70.00 to $72.00 and gave the company an “outperform” rating in a report on Friday. Raymond James Financial boosted their price objective on shares of Enterprise Financial Services from $65.00 to $72.00 and gave the company an “outperform” rating in a research report on Wednesday, July 1st. Weiss Ratings reiterated a “buy (b)” rating on shares of Enterprise Financial Services in a research note on Friday, July 10th. Finally, Piper Sandler raised their target price on shares of Enterprise Financial Services from $64.00 to $67.00 and gave the stock a “neutral” rating in a report on Thursday, June 18th. Four analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $69.75.

Insider Transactions at Enterprise Financial Services

In other Enterprise Financial Services news, EVP Mark G. Ponder sold 1,250 shares of the firm’s stock in a transaction on Tuesday, April 28th. The stock was sold at an average price of $60.55, for a total value of $75,687.50. Following the sale, the executive vice president directly owned 23,526 shares in the company, valued at approximately $1,424,499.30. This trade represents a 5.05% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Insiders own 2.20% of the company’s stock.

Institutional Trading of Enterprise Financial Services

A number of large investors have recently modified their holdings of the company. EverSource Wealth Advisors LLC increased its stake in shares of Enterprise Financial Services by 929.0% in the second quarter. EverSource Wealth Advisors LLC now owns 638 shares of the bank’s stock valued at $35,000 after purchasing an additional 576 shares during the period. First Horizon Corp boosted its position in shares of Enterprise Financial Services by 55.6% during the fourth quarter. First Horizon Corp now owns 708 shares of the bank’s stock worth $38,000 after buying an additional 253 shares during the period. Signaturefd LLC grew its holdings in Enterprise Financial Services by 65.0% in the 4th quarter. Signaturefd LLC now owns 812 shares of the bank’s stock worth $44,000 after buying an additional 320 shares in the last quarter. Kestra Advisory Services LLC bought a new position in Enterprise Financial Services in the 4th quarter worth approximately $99,000. Finally, Fifth Third Bancorp acquired a new stake in Enterprise Financial Services in the 1st quarter valued at approximately $109,000. Institutional investors and hedge funds own 72.21% of the company’s stock.

Enterprise Financial Services Trading Up 1.5%

The firm has a 50-day moving average of $63.57 and a 200 day moving average of $59.29. The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 0.21. The stock has a market capitalization of $2.41 billion, a price-to-earnings ratio of 13.12 and a beta of 0.79.

About Enterprise Financial Services

Enterprise Financial Services Corp. (NASDAQ: EFSC) is a bank holding company headquartered in Clayton, Missouri, operating through its primary subsidiary, Enterprise Bank & Trust. The company provides a comprehensive range of banking and financial services to individuals, small- and mid-sized businesses, and institutional clients. Its capabilities encompass deposit products, lending solutions, mortgage banking, and treasury management, supported by a full suite of digital banking tools and personalized client service.

In its commercial banking segment, Enterprise Bank & Trust offers lines of credit, equipment financing, commercial real estate loans, construction lending and agriculture lending.