Financial Institutions (NASDAQ:FISI) Lowered to “Hold” Rating by Wall Street Zen

Financial Institutions (NASDAQ:FISI) was downgraded by equities research analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research report issued on Saturday.

A number of other equities research analysts have also weighed in on FISI. Piper Sandler reaffirmed a “neutral” rating and set a $34.00 target price on shares of Financial Institutions in a research report on Wednesday, December 17th. Weiss Ratings reissued a “hold (c-)” rating on shares of Financial Institutions in a report on Monday, December 29th. Keefe, Bruyette & Woods lifted their price target on Financial Institutions from $34.00 to $35.00 and gave the company an “outperform” rating in a research report on Monday, October 27th. Finally, Zacks Research upgraded Financial Institutions to a “hold” rating in a research report on Thursday, December 18th. One research analyst has rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $33.67.

Financial Institutions Price Performance

FISI stock opened at $32.94 on Friday. The firm has a market capitalization of $663.08 million, a P/E ratio of 9.12 and a beta of 0.70. Financial Institutions has a 52 week low of $20.97 and a 52 week high of $33.73. The company has a fifty day simple moving average of $31.70 and a two-hundred day simple moving average of $28.76. The company has a quick ratio of 0.87, a current ratio of 0.87 and a debt-to-equity ratio of 0.19.

Financial Institutions (NASDAQ:FISI) last released its earnings results on Thursday, January 29th. The bank reported $0.96 earnings per share for the quarter, beating the consensus estimate of $0.95 by $0.01. The firm had revenue of $64.12 million for the quarter, compared to the consensus estimate of $62.99 million. Financial Institutions had a return on equity of 12.75% and a net margin of 19.81%. Analysts anticipate that Financial Institutions will post 3.3 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Financial Institutions

Several large investors have recently added to or reduced their stakes in FISI. Larson Financial Group LLC increased its stake in shares of Financial Institutions by 3,150.0% during the third quarter. Larson Financial Group LLC now owns 1,170 shares of the bank’s stock worth $32,000 after buying an additional 1,134 shares during the period. Comerica Bank grew its holdings in shares of Financial Institutions by 39.8% during the third quarter. Comerica Bank now owns 1,647 shares of the bank’s stock worth $45,000 after buying an additional 469 shares during the last quarter. EverSource Wealth Advisors LLC grew its position in Financial Institutions by 679.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,738 shares of the bank’s stock valued at $45,000 after buying an additional 1,515 shares during the last quarter. Advisory Services Network LLC purchased a new stake in Financial Institutions in the 3rd quarter valued at approximately $53,000. Finally, Allworth Financial LP boosted its position in shares of Financial Institutions by 925.2% during the 2nd quarter. Allworth Financial LP now owns 2,850 shares of the bank’s stock worth $73,000 after purchasing an additional 2,572 shares in the last quarter. 60.45% of the stock is owned by hedge funds and other institutional investors.

Financial Institutions News Summary

Here are the key news stories impacting Financial Institutions this week:

• Positive Sentiment: Q4 beat on EPS and revenue; profitability restored — FISI reported Q4 net income of ~$20.0M and EPS of $0.96, modestly topping consensus and marking a sharp turnaround from a large loss a year earlier. The result reinforces the company’s return to profitability and supports analyst confidence. Business Insider: Net Income Report
• Positive Sentiment: Full‑year turnaround, record net interest income and margin expansion — FY2025 net income available to common shareholders was ~$73.4M vs. a FY2024 loss; net interest income hit record quarterly and annual levels and full‑year NIM expanded materially year‑over‑year. Those trends improve core earnings durability. QuiverQuant: Q4 & FY2025 Results
• Positive Sentiment: Capital and rating improvement via subordinated notes; buybacks and dividend raise — The company completed an $80M private placement of subordinated notes (BBB‑/Stable from Kroll), used proceeds to redeem older debt, repurchased ~336,869 shares in Q4 and raised the quarterly dividend ~3%. These moves signal stronger capital flexibility and shareholder returns. QuiverQuant: Capital/Dividend/Buyback Details
• Neutral Sentiment: Management remarks and investor materials available — The full earnings presentation and call transcript were posted (useful for detail on strategy, guidance and deposit/loan trends). Review management commentary for color on deposit retention and 2026 priorities. Seeking Alpha: Q4 Presentation Seeking Alpha: Call Transcript
• Neutral Sentiment: Short‑interest data shows essentially no reported short interest (data appears anomalous); not currently a clear driver. (Report dated Jan 28.)
• Negative Sentiment: Quarterly deposit decline and higher short‑term borrowings — Total deposits fell ~$151.5M QoQ (seasonality and fewer brokered deposits), and short‑term borrowings rose; deposit retention/acquisition is flagged as a 2026 focus area and could pressure funding costs if trends continue. QuiverQuant: Deposit/Funding Details
• Negative Sentiment: Credit costs and allowance movements — Net charge‑offs and provision levels ticked up modestly (net charge‑offs annualized ~0.24% for 2025) while the allowance for credit losses on loans edged down to ~1.02% of loans. Investors should monitor credit trending as loans grow. QuiverQuant: Asset Quality

Financial Institutions Company Profile

Financial Institutions, Inc (NASDAQ: FISI) is a non-diversified, closed-end management investment company that seeks to provide tax-advantaged income to shareholders. The company invests primarily in investment-grade municipal obligations issued by states, municipalities and government agencies across the United States. By focusing on high-credit-quality bonds, Financial Institutions aims to deliver current income that is exempt from federal income tax.

In constructing its portfolio, the company may also utilize money market instruments and repurchase agreements to manage liquidity and facilitate efficient settlement.