Hovde Group Upgrades First Financial Bankshares Rating to Outperform

Shares of First Financial Bankshares (NASDAQ: FFIN) received an upgrade from Hovde Group, shifting from a market perform rating to an outperform rating. This change was communicated to investors in a research report issued on October 23, 2023, with a price target set at $39.00 for the bank’s stock.

Analyst Ratings and Market Reactions

The upgrade from Hovde Group comes at a time when other financial institutions are also reassessing First Financial Bankshares. Notably, Keefe, Bruyette & Woods lowered their price target from $38.00 to $36.00 while maintaining a market perform rating. Meanwhile, Cantor Fitzgerald initiated coverage on September 10, 2023, with a neutral rating and a price target of $39.00.

In contrast, Weiss Ratings reaffirmed a “hold (c)” rating on the bank’s shares on October 14, 2023. Overall, one analyst has assigned a Buy rating while three others have indicated a Hold rating. Currently, the consensus rating for First Financial Bankshares stands at “Hold” with an average price target of $38.00, according to data from MarketBeat.com.

Earnings and Insider Activity

First Financial Bankshares recently reported its earnings on October 23, 2023. The bank posted earnings per share (EPS) of $0.36, falling short of the consensus estimate of $0.47 by $0.11. Revenue for the quarter reached $162.06 million, slightly exceeding the expected $161.21 million. The bank’s return on equity was recorded at 14.16%, with a net margin of 29.81%. Compared to the same quarter last year, revenue increased by 15.6%.

In a notable move, Michelle S. Hickox, the Chief Financial Officer, purchased 2,000 shares of the bank’s stock on October 28, 2023, at an average price of $31.15 per share. This transaction, valued at $62,300, increased her holdings to 24,461 shares, worth approximately $761,960.15. This purchase reflects an 8.90% increase in her position within the company. The transaction was disclosed in a filing with the Securities & Exchange Commission.

Institutional Investment Trends

Institutional investors have been active in adjusting their positions in First Financial Bankshares. Recent transactions include HHM Wealth Advisors LLC, which acquired a new position valued at $25,000 in the third quarter. Similarly, Corsicana & Co. and BI Asset Management Fondsmaeglerselskab A S also entered new positions valued at $27,000 and $36,000, respectively. Notably, Smartleaf Asset Management LLC increased its stake by 47.5% in the first quarter, now owning 1,255 shares valued at $45,000.

Overall, institutional investors hold approximately 69.78% of First Financial Bankshares. The ongoing investor interest indicates a significant level of confidence in the bank’s future performance, despite the mixed analyst ratings.

First Financial Bankshares operates through its subsidiaries, providing a range of commercial banking products and services primarily in Texas. These include checking and savings accounts, automated teller machine services, internet banking, mobile banking, and wealth management services.

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