First Interstate BancSystem, Inc. (NASDAQ: FIBK) has received an average recommendation of “Hold” from analysts covering the company, according to MarketBeat.com. Of the seven brokerages that have provided ratings, one analyst has issued a sell recommendation, while three analysts suggest a hold, and three recommend buying the stock. The current average twelve-month price target across these brokerages stands at $35.57.
Recent Analyst Ratings and Price Targets
Several research firms have recently updated their ratings and price targets for First Interstate BancSystem. UBS Group increased its price target from $33.00 to $34.00 and maintained a “neutral” rating on November 5, 2023. Similarly, Barclays raised its price objective from $34.00 to $36.00 and assigned an “equal weight” rating on November 11, 2023. On September 12, 2023, DA Davidson lifted its price target from $35.00 to $38.00 while giving the stock a “buy” rating.
In a notable update, Wall Street Zen upgraded First Interstate BancSystem from a “sell” rating to a “hold” on November 8, 2023. Additionally, Weiss Ratings reaffirmed a “hold (C+)” rating on October 8, 2023. These varied assessments reflect a cautious optimism surrounding the bank’s performance.
Insider Transactions and Institutional Holdings
In related news, significant transactions have taken place among major shareholders. On October 7, 2023, Jonathan R. Scott, a major shareholder, sold 13,715 shares at an average price of $32.09, amounting to $440,114.35. Post-sale, Scott retains 959,109 shares valued at approximately $30.78 million, reflecting a 1.41% decrease in ownership. This transaction was disclosed in a filing with the U.S. Securities and Exchange Commission (SEC).
Additionally, on October 1, 2023, the Susan Scott Heyneman Trust sold 10,000 shares at an average price of $31.59, totaling $315,900.00. Following this sale, the trust holds 244,460 shares valued at around $7.72 million, marking a 3.93% decrease in ownership. Over the past ninety days, insiders have sold a total of 51,800 shares valued at $1.64 million. Currently, insiders collectively own 8.20% of the company’s stock.
Institutional investors have also made significant moves. Vanguard Group Inc. increased its holdings by 0.7% during the third quarter, now owning 8,833,965 shares valued at $281.54 million. Wellington Management Group LLP raised its stake by 20.4%, owning 5,915,425 shares worth $188.53 million after acquiring an additional 1,003,021 shares. Dimensional Fund Advisors LP grew its position by 1.5%, now holding 5,495,403 shares valued at $175.14 million. State Street Corp also increased its stake by 2.3% in the second quarter, owning 4,050,473 shares worth $116.74 million.
Institutional investors now control 88.71% of the company’s stock, reflecting strong confidence in First Interstate BancSystem’s future prospects.
Financial Performance and Dividend Announcement
First Interstate BancSystem reported its latest earnings on October 29, 2023. The company announced earnings per share (EPS) of $0.69, exceeding analysts’ expectations of $0.59 by $0.10. The financial services provider recorded a return on equity of 7.30% and a net margin of 16.04%. Revenue for the quarter amounted to $204.70 million, falling short of the anticipated $254.71 million.
Looking ahead, analysts project that First Interstate BancSystem will achieve an EPS of $2.53 for the current fiscal year. The bank also declared a quarterly dividend of $0.47 on November 20, 2023, with a dividend yield of 6.1%. The dividend payout ratio stands at 79.32%.
First Interstate BancSystem operates as a bank holding company for First Interstate Bank, which provides various banking products and services across the United States. Its offerings include traditional depository products, such as checking and savings accounts, as well as commercial and municipal deposit agreements.
