August 16, 2023 – First Business Financial Services, Inc. (NASDAQ:FBIZ) has recently caught the attention of institutional investor SG Americas Securities LLC as it acquired a new position in the company, according to its most recent filing with the SEC. This move signals confidence in the financial services provider and shows a commitment from SG Americas Securities LLC towards diversifying its portfolio. The institutional investor bought 3,356 shares of FBIZ stock, valued at approximately $102,000.
Adding further optimism to the situation is First Business Financial Services’ announcement of an upcoming quarterly dividend. The dividend is set to be paid on Thursday, August 17th and investors who were on record as of Monday, August 7th will receive a $0.2275 dividend per share. This increase in dividend payout represents a positive change from the company’s previous quarterly dividend of $0.22 and reflects their commitment to rewarding shareholders.
Investors looking for long-term stability and returns will appreciate First Business Financial Services’ dividend yield of 2.78%. With an annualized basis dividend payout of $0.91 per share, shareholders can take comfort in knowing that their investment is generating consistent income.
The growing confidence surrounding FBIZ is also evident in recent comments made by equities analysts. Raymond James analysts have raised their target price on First Business Financial Services shares from $36.00 to $40.00 and have given the company an “outperform” rating in their research note dated July 31st. This upgrade indicates analysts’ belief that FBIZ stock has significant growth potential.
Furthermore, StockNews.com assumed coverage on First Business Financial Services on May 18th with a “hold” rating for the company’s shares. While this may not demonstrate overwhelming enthusiasm, it does show cautious optimism towards FBIZ as an investment opportunity.
However, it is important to highlight that not all equities analysts share the same sentiment. As seen in a research report from DA Davidson dated May 2nd, they have decreased their price objective on First Business Financial Services from $33.00 to $31.00. This indicates a more conservative outlook on the company’s future performance.
In conclusion, First Business Financial Services has recently attracted the interest of institutional investor SG Americas Securities LLC with its new position in the company. The upcoming quarterly dividend, along with positive comments from equities analysts, seems to validate investors’ optimism towards FBIZ. Nonetheless, it is crucial for investors to assess all available information and conduct thorough research before making any investment decisions.
First Business Financial Services, Inc.
FBIZ
Strong Buy
Updated on: 17/08/2023
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Climbing Interest: First Business Financial Services Attracts Institutional Investors and Hedge Funds
First Business Financial Services, a leading financial services provider, has recently seen a surge in interest from institutional investors and hedge funds. Various notable entities like Dorsey Wright & Associates, Mendota Financial Group LLC, UBS Group AG, BNP Paribas Arbitrage SA, and Allspring Global Investments Holdings LLC have all acquired stakes in the company.
During the fourth quarter of last year, Dorsey Wright & Associates made a significant investment in First Business Financial Services. The value of their stake amounted to approximately $29,000. Similarly, Mendota Financial Group LLC also purchased a stake worth the same amount during the same period. Additionally, UBS Group AG acquired a new position in First Business Financial Services in the first quarter of this year with an investment totaling around $37,000.
However, it was BNP Paribas Arbitrage SA that truly caught attention with its staggering growth in holdings. Their stake in First Business Financial Services experienced an incredible increase of 2,496.3% during the second quarter. This meant that BNP Paribas Arbitrage SA now owns 2,129 shares of the company’s stock valued at $66,000 after purchasing an additional 2,047 shares.
Allspring Global Investments Holdings LLC also joined the line-up of investors who recognized the potential of First Business Financial Services. They raised their position by 16.6% during the first quarter by acquiring an additional 458 shares for $98,000.
Institutional investors hold a significant portion of First Business Financial Services’ stock – specifically 64.37%. This demonstrates both trust and confidence from these major players within the industry.
Meanwhile, insider trading revealed Director Gerald L. Kilcoyne’s recent purchase of 6,000 shares on June 15th at an average cost of $30.55 per share—a total transaction value of $183,300. This acquisition brings Kilcoyne’s total shares to 64,706, equivalent to a value of $1,976,768.30. The transaction was fully disclosed in a document filed with the Securities and Exchange Commission (SEC), accessible through its official website. It’s worth noting that insiders now own 6.30% of the company’s stock.
Adding to the positive developments surrounding First Business Financial Services, the company has also announced an increase in its quarterly dividend. Shareholders of record on August 7th will receive a $0.2275 dividend on Thursday, August 17th—a slight improvement from the previous dividend of $0.22 per share. With the ex-dividend date set for August 4th, this represents an annualized dividend of $0.91 and a yield of 2.78%. The current payout ratio stands at 20.40%.
First Business Financial Services opened at $32.77 on Wednesday and has demonstrated stability with a beta coefficient of 0.76—indicating less volatility compared to the market average. The company’s market capitalization is approximately $272.65 million, while its price-to-earnings ratio stands at an attractive level of 7.35.
With a debt-to-equity ratio of 1.42 and a quick ratio and current ratio both standing at 1.11, First Business Financial Services showcases solid financial health overall.
Throughout the last year, shares have traded between a low of $24.57 and a high of $39.88—an interesting range that highlights potential opportunities for investors looking to capitalize on market fluctuations.
In conclusion, First Business Financial Services has recently attracted considerable attention from institutional investors and hedge funds alike amid favorable developments within the company’s financials and impending dividend distribution to shareholders. As investors speculate about potential future growth and stability given these impressive numbers, it remains imperative to closely monitor any filings or announcements made by First Business Financial Services moving forward.
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