First Business Financial Services, Inc. (NASDAQ:FBIZ) has been making headlines in the financial world recently with its significant growth in the short interest. According to reports released on March 31st, FBIZ has a short interest of 140,600 shares – an increase of 7.7% from the previous total of 130,600 shares. This amounts to approximately 1.8% of the company’s shares being short sold.
Analysts have been keeping a close eye on this development and are closely examining the company’s trading trends. The days-to-cover ratio is currently at 6.5 days based on an average daily trading volume of 21,500 shares, indicating that it may take nearly a week for all short sellers to cover their positions.
However, recent insider trading activity at FBIZ shows strong faith from Director John J. Harris who purchased 1,000 shares of the company’s stock at an average cost of $30.73 per share on March 23rd. Mr. Harris now holds around 12,440 shares in the company that have been valued at $382,281.20 since he acquired them.
In related news, StockNews.com issued a “hold” rating for FBIZ following its coverage report released on Thursday, March 16th while Raymond James also lowered its target price from $41 to $36 and recommended an “outperform” rating for the stock.
The Milwaukee-based financial services provider had previously released better-than-expected earnings results for Q4’2016 in January that showed an EPS of $1.18 per share – surpassing analysts’ estimates by $0.06 – with revenue coming in close to expectations at $34 million.
Equity research analysts have forecasted that First Business Financial Services will post earnings per share of around $4.34 for this year alone.
The market is closely watching FBIZ as it continues to show growth in the short interest along with encouraging insider trading activity and stable earnings results. With high expectations for this year from analysts, FBIZ may continue to be a mainstay in the financial scene for the foreseeable future.
Institutional Investors Place Confidence in First Business Financial Services: Stock Prices Rise Despite Market Fluctuations
First Business Financial Services is one of the leading financial services providers in the market, and it seems that hedge funds have taken notice. Recent data reveals that various institutional investors have been increasing their stake in the company’s stock, further cementing its position as a strong player in the industry.
One key player that has demonstrated confidence in First Business Financial Services is JPMorgan Chase & Co. The institution increased its stake in shares of the business by an impressive 39.3% during the first quarter, with 6,663 shares now valued at $219,000 under its ownership. Bank of New York Mellon Corp also showed similar optimism when it increased its stake by 3.5% during the same period.
Investors such as American Century Companies Inc., Citigroup Inc., and BlackRock Inc. also took notice of First Business Financial Services’ potential and acquired stakes ranging from 4.4% to 29.3%. These purchases indicate continued trust and confidence that institutional investors have placed on the financial services provider.
It’s evident that hedge funds are recognizing First Business Financial Services’ potential for growth and value creation, resulting in positive market feedback, with FBIZ stock trading at a high of $39.88 within the last year alone. However, observers must take note of recent dips in stock prices which were trading down by $0.34 during mid-day trading on Friday at $29.00 due to external factors such as current market conditions and overall economic uncertainty.
Nonetheless, analysts agree that First Business Financial Services’ impressive fundamentals – including an admirable quick ratio and current ratio – provide a good indication for steady growth for both short-term traders and long-term investors alike.
Institutional investors currently hold over two-thirds (66.11%) of First Business Financial Services’ outstanding shares, showcasing tremendous faith among Wall Street heavyweights regarding this potential forte with an enviable market capitalization worth approximately $242.15 million.
Overall, it’s clear that First Business Financial Services is seen as a promising player in the financial services sector, attracting the attention of savvy institution players across the industry. Despite market fluctuations and external headwinds, this company remains at the forefront of its domain, primed to ride any waves and continue paving its path for lasting success.