Enterprise Financial Services (NASDAQ:EFSC) Shares Gap Down on Disappointing Earnings

Enterprise Financial Services Corporation (NASDAQ:EFSC)’s stock price gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $65.68, but opened at $59.61. Enterprise Financial Services shares last traded at $63.29, with a volume of 164,617 shares.

The bank reported $1.13 earnings per share for the quarter, missing the consensus estimate of $1.33 by ($0.20). The firm had revenue of $182.19 million during the quarter, compared to analyst estimates of $189.15 million. Enterprise Financial Services had a net margin of 18.72% and a return on equity of 9.73%.

Enterprise Financial Services Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th will be given a $0.35 dividend. This is a positive change from Enterprise Financial Services’s previous quarterly dividend of $0.34. The ex-dividend date is Tuesday, September 15th. This represents a $1.40 annualized dividend and a yield of 2.2%. Enterprise Financial Services’s payout ratio is currently 25.66%.

More Enterprise Financial Services News

Here are the key news stories impacting Enterprise Financial Services this week:

• Positive Sentiment: EFSC increased its quarterly dividend to $0.35 per share from $0.34, a 2.9% raise, signaling confidence in cash generation and capital strength. Article Title
• Positive Sentiment: The company also expanded its share repurchase authorization, which can support EPS and shareholder returns over time. Article Title
• Neutral Sentiment: Management said it used a targeted investment-portfolio restructuring and added $175 million of regulatory capital to improve margins and strengthen the balance sheet. Article Title
• Negative Sentiment: The main drag on the stock is the earnings and revenue miss, which suggests softer-than-expected operating performance in the quarter. Article Title

Analyst Ratings Changes

Several research analysts have issued reports on EFSC shares. Piper Sandler raised their price objective on shares of Enterprise Financial Services from $64.00 to $67.00 and gave the stock a “neutral” rating in a research report on Thursday, June 18th. Keefe, Bruyette & Woods upped their target price on shares of Enterprise Financial Services from $66.00 to $67.00 and gave the company an “outperform” rating in a report on Friday, April 24th. Raymond James Financial increased their target price on shares of Enterprise Financial Services from $65.00 to $72.00 and gave the stock an “outperform” rating in a research note on Wednesday, July 1st. Wall Street Zen lowered Enterprise Financial Services from a “hold” rating to a “sell” rating in a report on Saturday, July 18th. Finally, Weiss Ratings restated a “buy (b)” rating on shares of Enterprise Financial Services in a research report on Friday, July 10th. Four investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $68.50.

Insiders Place Their Bets

In related news, EVP Mark G. Ponder sold 1,250 shares of Enterprise Financial Services stock in a transaction on Tuesday, April 28th. The shares were sold at an average price of $60.55, for a total value of $75,687.50. Following the transaction, the executive vice president directly owned 23,526 shares in the company, valued at $1,424,499.30. This trade represents a 5.05% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 2.20% of the stock is currently owned by company insiders.

Institutional Trading of Enterprise Financial Services

Several hedge funds have recently made changes to their positions in EFSC. EverSource Wealth Advisors LLC increased its stake in shares of Enterprise Financial Services by 929.0% during the second quarter. EverSource Wealth Advisors LLC now owns 638 shares of the bank’s stock worth $35,000 after acquiring an additional 576 shares during the period. First Horizon Corp lifted its position in Enterprise Financial Services by 55.6% in the fourth quarter. First Horizon Corp now owns 708 shares of the bank’s stock valued at $38,000 after purchasing an additional 253 shares during the period. Signaturefd LLC lifted its position in Enterprise Financial Services by 65.0% in the fourth quarter. Signaturefd LLC now owns 812 shares of the bank’s stock valued at $44,000 after purchasing an additional 320 shares during the period. Kestra Advisory Services LLC purchased a new stake in Enterprise Financial Services in the 4th quarter valued at approximately $99,000. Finally, Fifth Third Bancorp purchased a new stake in Enterprise Financial Services in the 1st quarter valued at approximately $109,000. Institutional investors and hedge funds own 72.21% of the company’s stock.

Enterprise Financial Services Price Performance

The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 0.21. The stock has a fifty day simple moving average of $63.42 and a two-hundred day simple moving average of $59.24. The company has a market cap of $2.38 billion, a PE ratio of 12.93 and a beta of 0.79.

Enterprise Financial Services Company Profile

Enterprise Financial Services Corp. (NASDAQ: EFSC) is a bank holding company headquartered in Clayton, Missouri, operating through its primary subsidiary, Enterprise Bank & Trust. The company provides a comprehensive range of banking and financial services to individuals, small- and mid-sized businesses, and institutional clients. Its capabilities encompass deposit products, lending solutions, mortgage banking, and treasury management, supported by a full suite of digital banking tools and personalized client service.

In its commercial banking segment, Enterprise Bank & Trust offers lines of credit, equipment financing, commercial real estate loans, construction lending and agriculture lending.