Investar Upgrade by StockNews.com Reflects Positive Outlook

Investar (NASDAQ:ISTR) received a significant upgrade from StockNews.com, which moved its rating from "hold" to "buy" in a research note made public on Friday. This change may indicate a more favorable outlook for the company, potentially attracting new investors and bolstering market confidence.

In a related development, Piper Sandler also initiated coverage on Investar's shares on the same day. They assigned a "neutral" rating along with a price target of $21.00 for the stock, suggesting that while the financial institution has positive aspects, there may be some reservations regarding its performance in the near term.

Investar's Stock Performance

On Friday, the stock experienced a slight decline of 2.2%, dropping $0.42 to a closing price of $18.56. During the trading session, 33,896 shares changed hands, which is higher than the company's average trading volume of 31,862 shares. The company's key financial ratios show a current ratio and quick ratio of 0.95 each, alongside a debt-to-equity ratio of 0.85, indicating a relatively stable financial position. The fifty-day moving average for Investar is $20.33, and the two-hundred-day moving average sits at $20.21. Current market capitalization for Investar is approximately $182.44 million with a price-to-earnings (P/E) ratio of 9.10, and a beta of 0.79. Over the past year, the stock has seen a low of $14.60 and a high of $24.81.

Investar recently reported its earnings on January 23rd, announcing earnings per share (EPS) of $0.65 for the quarter, which surpassed analysts' average expectation of $0.39 by 26 cents. The financial institution also reported a return on equity of 8.00% and a net profit margin of 12.81%. Analysts anticipate that Investar will reach an EPS of 1.83 for the current year based on performance projections.

Institutional Investment Changes

There have been notable movements among institutional investors regarding Investar. For instance, the New York State Common Retirement Fund doubled its stake in the bank during the fourth quarter, now holding 2,200 shares valued at around $48,000 after acquiring an additional 1,100 shares in recent trading. Similarly, MetLife Investment Management increased its position by 129.1% in the third quarter, accumulating 5,429 shares valued at approximately $105,000 after adding 3,059 shares.

Wells Fargo & Company also boosted its stake by 47.8%, bringing its total ownership to 8,309 shares, which are valued at about $182,000. Prudential Financial Inc. entered a new position in Investar valued at roughly $211,000 last quarter, and Cornercap Investment Counsel acquired a stake worth about $272,000. Currently, institutional investors and hedge funds control 50.17% of Investar's shares.

Company Overview

Investar Holding Corporation serves as the bank holding company for Investar Bank, which provides various commercial banking products and services to individuals, professionals, and small to medium-sized businesses, primarily in south Louisiana, southeast Texas, and Alabama. The range of offerings includes deposits, checking and savings accounts, money market accounts, individual retirement accounts, and certificates of deposit, alongside services like debit and credit cards, online/mobile banking, and reciprocal deposit products.

Conclusion

The upgrade by StockNews.com alongside Piper Sandler's neutral rating indicates a noteworthy interest in Investar's future. Investors should consider both the recent performance and institutional investment patterns while evaluating Investar's stock for potential opportunities in their portfolios.

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