DA Davidson Raises FY2025 Earnings Forecast for Enterprise Financial Services

Investment analysts at DA Davidson have raised their earnings per share (EPS) estimates for Enterprise Financial Services Corp (NASDAQ:EFSC) for the fiscal year 2025. In a note to investors dated January 29, the analyst J. Rulis updated the forecast, predicting the bank will earn $5.20 per share, a significant increase from the earlier estimate of $4.60. DA Davidson maintains a "Buy" rating for the stock and has set a price target of $70.00. Comparatively, the consensus estimate among analysts for Enterprise Financial Services' current full-year earnings stands at $4.69 per share.

On January 27, Enterprise Financial Services released its quarterly earnings report. The bank reported an EPS of $1.32 for the quarter, surpassing analysts' expectations, which were set at $1.18. The company demonstrated a return on equity of 10.94% alongside a net margin of 20.12% during this period.

Research Reports and Analysts' Ratings

Additionally, other analysts have recently weighed in on Enterprise Financial Services. Piper Sandler upgraded their price target from $58.00 to $62.00, giving the bank an "overweight" rating on October 23. Meanwhile, Keefe, Bruyette & Woods reaffirmed an "outperform" rating and adjusted their price target for the shares from $68.00 to $70.00.

Stock Performance Overview

As of Friday, Enterprise Financial Services shares opened at $60.12. The company's market capitalization stands at $2.23 billion, with a price-to-earnings (P/E) ratio of 12.42. The stock exhibits a beta of 1.00, indicating its movement is in line with the market's volatility. The current ratio and quick ratio are both recorded at 0.91, while the debt-to-equity ratio is 0.27. Over the past year, the stock has ranged from a low of $37.28 to a high of $63.13.

Dividend Announcement

The company recently disclosed a quarterly dividend slated for payment on March 31. Shareholders who are on record by March 14 will receive a dividend of $0.29 per share. This dividend represents an annualized amount of $1.16, yielding a rate of 1.93%. This is an increase from the previous quarterly dividend, which was $0.28. The current payout ratio for Enterprise Financial Services is 23.14%.

Insider Transactions

In other news, Director Richard Sanborn sold 100,000 shares of the company's stock on November 6 at an average price of $59.56, totaling approximately $5.96 million. After this transaction, Sanborn retains ownership of 40,950 shares valued around $2.44 million, reflecting a 70.95% decrease in his holdings. This transaction has been reported to the Securities & Exchange Commission (SEC), and it is noted that corporate insiders hold about 2.30% of the stocks.

Institutional Investment Trends

Recent changes in insider holdings have also involved various hedge funds. The New York State Teachers Retirement System acquired a new position valued at $191,000 in the fourth quarter. Empowered Funds LLC increased its investment in Enterprise Financial Services by 5.1%, now owning 123,282 shares valued at $6.95 million. Jennison Associates LLC expanded its holdings by 28.3% during the fourth quarter, owning 566,780 shares worth $31.97 million after adding 125,150 shares. Wealth Enhancement Advisory Services LLC raised its stake by 7.6%, and Versant Capital Management also obtained new shares valued at approximately $29,000. Institutional and hedge fund investors currently hold 72.21% of the company's stock.

About the Company

Enterprise Financial Services Corp acts as the holding company for Enterprise Bank & Trust, offering a range of banking and wealth management services to individual and corporate clients across several states including Arizona, California, Florida, Kansas, Missouri, Nevada, and New Mexico. Their services encompass checking accounts, savings accounts, money market accounts, and certificates of deposit.

Earnings, Stock, Finance