Southside Bancshares (NASDAQ:SBSI) Shares Fall After Underwhelming Earnings Report

Southside Bancshares, Inc. (NASDAQ:SBSI) experienced a significant decline in share price when the market opened on Thursday, triggered by a disappointing earnings report. The stock closed at $33.56 the previous day but opened at $32.22, with shares trading as low as $31.84, accompanied by a trading volume of 9,846 shares.

The company reported earnings of $0.68 per share for the quarter, which fell short of market expectations, as analysts had projected earnings of $0.73 per share, indicating a miss of $0.05. Despite a net margin of 18.90% and a return on equity of 10.64%, the results reflect a decrease from the same period last year, where the company earned $0.60 per share.

Dividend Distribution by Southside Bancshares

In addition to the earnings announcement, Southside Bancshares also declared a quarterly dividend of $0.36 per share. This dividend was distributed on Thursday, September 5th, to investors who were on record as of August 22nd, the ex-dividend date. The annualized dividend totals $1.44, providing investors with a yield of 4.46%, and the company's current payout ratio stands at 53.53%.

Analyst Perspectives on Southside Bancshares

The stock of Southside Bancshares has recently been featured in various analysts’ reports. Hovde Group raised their price target for SBSI from $31.00 to $37.00 and assigned a "market perform" rating in a note dated July 29th. Meanwhile, StockNews.com altered its rating on Southside Bancshares from "hold" to "sell" as of October 10th.

An interesting point to note is the recent insider activities. CFO, Julie Shamburger, sold 5,360 shares of Southside Bancshares on July 31st at an average price of $35.03, completing the transaction for a total value of $187,760.80. Following this sale, she holds 24,327 shares, which are valued at approximately $852,174.81. This action indicated no significant change in her ownership percentage. Furthermore, on August 23rd, another insider, T L. Arnold, Jr., sold 4,667 shares at an average price of $33.71 for a total of $157,324.57, which also represented no notable effect on their position.

Institutional Investors Shifting Holdings

Recent changes in institutional holdings have been noteworthy. Nisa Investment Advisors LLC boosted its stake in Southside Bancshares by 54.4% during the second quarter, acquiring an additional 387 shares and owning 1,099 shares valued at approximately $30,000. CWM LLC raised its holdings by an impressive 447.5%, adding 2,533 shares, bringing its total ownership to 3,099 shares worth $86,000. EntryPoint Capital LLC increased its position by 57%, resulting in 3,293 shares valued at $96,000. Another firm, Point72 Asset Management L.P., grew its stake by 48.3%, culminating in 5,043 shares worth $139,000. Moreover, Bill Few Associates Inc. initiated a new investment in Southside Bancshares during the third quarter, amounting to roughly $222,000. Currently, institutional investors collectively possess 55.70% of the company's shares.

Performance Metrics of Southside Bancshares

In terms of financial metrics, Southside Bancshares displays a debt-to-equity ratio of 0.44, along with a quick ratio and current ratio both at 0.71. The company possesses a market capitalization of $976.81 million and trades at a P/E ratio of 11.74. The beta of SBSI is recorded at 0.54. Additionally, the stock has been moving around a 50-day moving average of $33.26 and a 200-day moving average of $30.05.

Overview of Southside Bancshares

Southside Bancshares, Inc. operates as the holding company for Southside Bank, providing an array of financial services targeting individuals, businesses, municipal entities, and nonprofit organizations. Their offerings in deposit products include savings accounts, money market accounts, and both interest and non-interest bearing checking accounts, as well as certificates of deposit.

Investors are encouraged to remain alert to developments regarding Southside Bancshares as the company navigates through these financial challenges.

Southside, Earnings, Dividends