Financial Institutions, Inc. (NASDAQ:FISI) Experiences Noticeable Short Interest Surge

Financial Institutions, Inc. (NASDAQ:FISI) has recently reported a significant rise in short interest during January. By January 15th, the total short interest reached 159,700 shares, reflecting a remarkable increase of 26.8% compared to the previous month's total of 125,900 shares as of December 31st. Given the current average daily trading volume of 101,000 shares, the days-to-cover ratio stands at 1.6 days, indicating a relatively short period for covering these short positions.

Insider Activity

In addition, there have been notable insider transactions. On December 13th, Director Robert N. Latella purchased 4,000 shares of Financial Institutions stock at an average price of $25.00 per share, amounting to a total investment of $100,000. As a result of this transaction, Mr. Latella now holds 16,000 shares, valued at approximately $400,000. This transaction constitutes a 33.33% increase in his stock ownership. Details of this transaction were filed with the Securities and Exchange Commission and can be accessed through their website. Currently, insiders own 2.68% of the company's shares.

Institutional Trading of Financial Institutions

Recent shifts in ownership stakes have also occurred among institutional investors and hedge funds. In the fourth quarter, R Squared Ltd initiated a new position in Financial Institutions valued at around $30,000. Meanwhile, US Bancorp DE increased its holdings by an impressive 119.3% during the third quarter, now owning a total of 2,572 shares worth approximately $66,000 after acquiring an additional 1,399 shares. SG Americas Securities LLC and CWM LLC have also made new investments and expanded their stakes in Financial Institutions during the third quarter, raising the percentage of institutional ownership to 60.45%.

Financial Institutions Stock Performance

As of the last trading session on Friday, Financial Institutions stock dropped by 2.9%, closing at $26.37. The trading volume recorded was 415,822 shares, surpassing the average volume of 118,414. The current market capitalization of the company is around $408.05 million, with a price-to-earnings (PE) ratio of 8.29 and a beta of 0.91. Over the past year, the stock has reached a low of $16.29 and a high of $29.34. The fifty-day moving average stands at $27.07, while the two-hundred day moving average is $25.81, with a debt-to-equity ratio of 0.26 and both quick and current ratios at 0.86.

Financial Institutions recently disclosed its quarterly earnings on January 30th. For the quarter, the company reported earnings per share (EPS) of $0.54, falling short of the consensus estimate of $0.74 by $0.20. The bank maintained a net margin of 13.72% and a return on equity of 11.32%. Sell-side analysts project that the company will achieve an EPS of 3.31 for the current fiscal year.

Financial Institutions Dividend Announcement

Additionally, the company announced a quarterly dividend on January 2nd, which was paid to stockholders who were on record as of December 13th. A dividend of $0.30 was issued, translating to an annualized dividend of $1.20, yielding a dividend yield of 4.55%. The ex-dividend date also fell on December 13th, and the company's current payout ratio is recorded at -82.76%.

Analyst Ratings and Updates

Financial Institutions has garnered attention from various analysts in recent weeks. StockNews.com adjusted its rating on FISI from "buy" to "hold" in a report dated December 18th. Keefe, Bruyette & Woods increased their target price from $27.00 to $28.00 while maintaining a "market perform" rating in their research published on December 4th. Stephens reaffirmed an "equal weight" rating, setting a price target of $33.00 for the shares. Furthermore, Piper Sandler initiated coverage on Financial Institutions on December 20th, giving the stock an "overweight" rating and a price target of $33.00.

Financial Institutions Company Overview

Financial Institutions, Inc. operates as a holding company for Five Star Bank, which provides comprehensive banking and financial services primarily within New York. The bank offers various account programs, including checking and savings accounts, money market accounts, and individual retirement accounts.

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