DA Davidson Upgrades EFSC FY2025 Earnings Forecast

Investment analysts at DA Davidson have recently revised their earnings estimates for Enterprise Financial Services Corp (NASDAQ:EFSC). In a note shared with investors on January 29th, DA Davidson raised its forecast for the company's earnings per share (EPS) in fiscal year 2025 from $4.60 to $5.20. This substantial adjustment demonstrates the analysts’ confidence in the bank's financial performance for the upcoming year.

Alongside this upgraded EPS estimate, DA Davidson maintains a "Buy" rating on Enterprise Financial Services and has set a price target of $70 per share. In comparison, the current consensus estimate for the bank's full-year earnings stands at $4.69 per share.

In terms of recent financial performance, Enterprise Financial Services announced its quarterly earnings on January 27th. The bank reported an EPS of $1.32 for the quarter, surpassing analysts' expectations, which were set at $1.18. This achievement reflects a strong return on equity of 10.94% and a net margin of 20.12%.

Analyst Ratings and Price Targets

Other analysts have also responded favorably to Enterprise Financial Services. For instance, Piper Sandler upgraded their price target from $58.00 to $62.00 and rated the company as "overweight" in a report dated October 23rd. Meanwhile, Keefe, Bruyette & Woods confirmed an "outperform" rating for the bank and increased its price target on shares to $70.00, up from a previous target of $68.00.

Stock Performance Overview

As of Friday, shares of Enterprise Financial Services traded at $60.12. The bank boasts a market capitalization of $2.23 billion and a price-to-earnings (PE) ratio of 12.42. The stock has shown stability with a beta of 1.00. Recent moving averages indicate a 50-day price average of $57.89 and a 200-day average of $54.04, with the shares hitting a 12-month low of $37.28 and a high of $63.13.

Dividend Information

Enterprise Financial Services has announced a quarterly dividend scheduled for payment on March 31st. Stockholders recorded as of March 14th will receive a dividend of $0.29 per share. This marks an increase from the previous dividend of $0.28, currently yielding an annualized dividend of $1.16, which translates to a 1.93% yield. The bank's payout ratio currently stands at 23.14%.

Insider Trading Activity

In other news, Director Richard Sanborn sold 100,000 shares of the bank's stock on November 6th at an average price of $59.56. The transaction was valued at approximately $5.96 million, leaving the director with 40,950 shares, worth around $2.44 million post-sale. This transaction represents a significant 70.95% decrease in his holdings. According to SEC filings, 2.30% of the stock is currently held by corporate insiders.

Institutional Activity

Several institutional investors have recently adjusted their positions in Enterprise Financial Services. Notably, the New York State Teachers Retirement System acquired a new stake valued at around $191,000 during the fourth quarter. Additionally, Empowered Funds LLC increased its position by 5.1% and now holds 123,282 shares valued at approximately $6.95 million. Jennison Associates LLC also enhanced its stake by 28.3% to own 566,780 shares worth around $31.97 million. Overall, institutional shareholders and hedge funds collectively own about 72.21% of the company’s stock.

About the Company

Enterprise Financial Services Corp serves as the holding company for Enterprise Bank & Trust, which provides various banking and wealth management services. Its operations target individuals and corporate entities across multiple states, including Arizona, California, Florida, Kansas, Missouri, Nevada, and New Mexico. The bank offers a range of financial products, including checking accounts, savings accounts, money market accounts, and certificates of deposit.

Investment, Earnings, Banking