Russell Investments Reduces Stake in ServisFirst Bancshares by 21.7%

Russell Investments Group Ltd. has reduced its stake in ServisFirst Bancshares, Inc. (NYSE: SFBS) by 21.7% during the first quarter of 2023. This decision was revealed in the company’s latest filing with the Securities and Exchange Commission (SEC). After selling 10,770 shares during this period, Russell now holds 38,930 shares of the financial services provider, which are valued at approximately $3,216,000.

This divestment is part of a broader trend, as multiple institutional investors and hedge funds have adjusted their holdings in ServisFirst Bancshares. Notably, Quarry LP acquired a new position in the company during the fourth quarter, valued at $30,000. Meanwhile, KBC Group NV increased its position by 6.0% in the first quarter, now owning 2,466 shares worth $204,000 after purchasing an additional 140 shares. Other firms, including Occudo Quantitative Strategies LP and GTS Securities LLC, also acquired new stakes, valued at approximately $219,000 and $225,000 respectively. Institutional investors and hedge funds collectively own 67.31% of the company’s stock.

Market Performance and Analyst Ratings

On the trading front, shares of ServisFirst Bancshares opened at $88.36 on Friday, reflecting a significant increase of 6.7%. The stock’s performance over time shows a 52-week low of $66.48 and a 52-week high of $101.37. The company boasts a market capitalization of $4.83 billion, a price-to-earnings (P/E) ratio of 19.33, and a beta of 0.85.

In terms of financial health, ServisFirst Bancshares has a current ratio and quick ratio of 0.96, indicating a solid liquidity position, alongside a low debt-to-equity ratio of 0.04. On July 21, 2023, the company reported quarterly earnings of $1.21 per share, surpassing analyst expectations of $1.20 by $0.01. Total revenue for the quarter was $132.11 million, although it fell short of analysts’ forecasts of $140.26 million. The firm reported a net margin of 24.62% and a return on equity of 15.47%.

Analysts from Piper Sandler have recently adjusted their price target for ServisFirst Bancshares from $84.00 to $90.00, maintaining a “neutral” rating. According to data from MarketBeat.com, the average rating for the stock is “Hold,” with a mean price target of $90.50.

Dividend Announcement and Company Overview

In addition to its stock performance, ServisFirst Bancshares declared a quarterly dividend of $0.335, which was paid on July 9, 2023. Shareholders on record as of July 1, 2023 received this dividend, translating to an annualized figure of $1.34 and a yield of 1.5%. The company’s current payout ratio stands at 29.32%.

ServisFirst Bancshares operates as the bank holding company for ServisFirst Bank, providing an array of banking services to individuals and corporations. Its offerings include demand, time, savings, and other deposits, along with various loan products such as commercial lending, consumer loans, and real estate loans.

As institutional interest continues to evolve, ServisFirst Bancshares remains a noteworthy entity in the financial sector, reflecting both the challenges and opportunities within the market landscape.