DA Davidson Raises FY2025 Earnings Expectations for Enterprise Financial Services

Investment analysts at DA Davidson have increased their earnings per share (EPS) estimates for Enterprise Financial Services Corp (NASDAQ:EFSC) for the fiscal year 2025. In a note to investors released on January 29th, analyst J. Rulis raised the EPS forecast to $5.20, up from a previous estimate of $4.60. This optimistic outlook aligns with DA Davidson's 'Buy' rating for the stock, along with a price target set at $70.00. In comparison, the current consensus estimate for the bank's full-year earnings stands at $4.69 per share.

Recent Earnings Results

On January 27th, Enterprise Financial Services reported its latest quarterly earnings. The company achieved an EPS of $1.32, surpassing analysts' forecasts of $1.18 by $0.14. The bank has demonstrated a return on equity of 10.94% and a net margin of 20.12%, indicating solid financial performance.

Additional Analyst Ratings

Other financial analysts have also recently provided updates regarding Enterprise Financial Services. Piper Sandler raised its price objective for the bank from $58.00 to $62.00 and assigned it an 'overweight' rating in a report published on October 23rd. Similarly, Keefe, Bruyette & Woods reiterated an 'outperform' rating and increased the price target on shares of Enterprise Financial Services to $70.00, up from a prior target of $68.00.

Stock Performance Overview

The stock of Enterprise Financial Services opened at $60.12 on Friday. The company boasts a market capitalization of $2.23 billion, a price-to-earnings (PE) ratio of 12.42, and a beta of 1.00. Its current ratio and quick ratio are both at 0.91, while the debt-to-equity ratio is 0.27. The company’s stock has a 50-day moving average price of $57.89 and a 200-day moving average price of $54.04. Over the past year, shares reached a low of $37.28 and a high of $63.13.

Dividend Announcement

Recently, Enterprise Financial Services announced a dividend payment to shareholders, scheduled for March 31st. The company will distribute a dividend of $0.29 per share to stockholders who are on record as of March 14th. This represents an increase from their previous quarterly dividend of $0.28. The annualized dividend now totals $1.16, yielding a dividend yield of 1.93%, with a payout ratio of 23.14%.

Insider Trading Activity

In insider news, Director Richard Sanborn sold 100,000 shares of the company on November 6th at an average price of $59.56, amounting to a total transaction of approximately $5.96 million. Following the sale, he owns around 40,950 shares, valued at about $2.44 million. The sale reflects a 70.95% reduction in his holdings. Currently, corporate insiders own about 2.30% of the stock.

Institutional Investment Changes

Recently, there have been notable changes in institutional holdings concerning Enterprise Financial Services. The New York State Teachers Retirement System acquired a new stake in the bank valued at $191,000 during the fourth quarter. Empowered Funds LLC increased its holdings by 5.1% during the same quarter, owning 123,282 shares worth approximately $6.95 million. Jennison Associates LLC boosted its holdings by 28.3% and now holds 566,780 shares valued at around $31.97 million. Furthermore, Wealth Enhancement Advisory Services LLC raised its position by 7.6%, owning 7,141 shares valued at $403,000.

About the Company

Enterprise Financial Services Corp functions as the holding company for Enterprise Bank & Trust, which provides banking and wealth management services to individuals and businesses across states such as Arizona, California, Florida, Kansas, Missouri, Nevada, and New Mexico. The services offered include checking and savings accounts, money market accounts, and certificates of deposit.

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