Tag: NASDAQFBIZ

With 59% ownership, First Business Financial Services, Inc. (NASDAQ:FBIZ) boasts of strong institutional backing

by  on  in Business Financial News

Key Insights

  • Significantly high institutional ownership implies First Business Financial Services’ stock price is sensitive to their trading actions

  • 50% of the business is held by the top 16 shareholders

  • Recent sales by insiders

Every investor in First Business Financial Services, Inc. (NASDAQ:FBIZ) should be aware of the most powerful shareholder groups. With 59% stake, institutions possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future.

Let’s take a closer look to see what the different types of shareholders can tell us about First Business Financial Services.

View our latest analysis for First Business Financial Services

ownership-breakdown

ownership-breakdown

What Does The Institutional Ownership Tell Us About First Business Financial Services?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in First Business Financial Services. This suggests some credibility amongst professional investors. But we can’t rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there’s always a risk that they are in a ‘crowded trade’. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see First Business Financial Services’ historic earnings and revenue below, but keep in mind there’s always

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Investors in First Business Financial Services (NASDAQ:FBIZ) have seen stellar returns of 151% over the past three years

by  on  in Business Financial News

The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But when you pick a company that is really flourishing, you can make more than 100%. For example, the First Business Financial Services, Inc. (NASDAQ:FBIZ) share price has soared 131% in the last three years. How nice for those who held the stock! Also pleasing for shareholders was the 19% gain in the last three months. But this could be related to the strong market, which is up 10.0% in the last three months.

So let’s investigate and see if the longer term performance of the company has been in line with the underlying business’ progress.

Check out our latest analysis for First Business Financial Services

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

First Business Financial Services was able to grow its EPS at 25% per year over three years, sending the share price higher. In comparison, the 32% per year gain in the share price outpaces the EPS growth. This suggests that, as the business progressed over the last few years, it gained the confidence of market participants. That’s not necessarily surprising considering the three-year track record of earnings growth.

The company’s earnings per share (over time) is depicted in the image below (click to see the exact numbers).

earnings-per-share-growth

earnings-per-share-growth

It’s probably worth noting we’ve seen significant insider buying in the last quarter, which we consider a positive. That said, we think earnings and revenue growth trends are even more important

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Positive week for First Business Financial Services, Inc. (NASDAQ:FBIZ) institutional investors who lost 5.2% over the past year

by  on  in Business Financial News

Key Insights

  • Significantly high institutional ownership implies First Business Financial Services’ stock price is sensitive to their trading actions
  • 50% of the business is held by the top 16 shareholders
  • Insiders have been buying lately

Every investor in First Business Financial Services, Inc. (NASDAQ:FBIZ) should be aware of the most powerful shareholder groups. With 61% stake, institutions possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Institutional investors would probably welcome last week’s 16% increase in share prices after a year of 5.2% losses as a sign that returns are likely to begin trending higher.

In the chart below, we zoom in on the different ownership groups of First Business Financial Services.

Check out our latest analysis for First Business Financial Services

ownership-breakdown
NasdaqGS:FBIZ Ownership Breakdown June 8th 2023

What Does The Institutional Ownership Tell Us About First Business Financial Services?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it’s included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that First Business Financial Services does have institutional investors; and they hold a good portion of the company’s stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of First Business Financial Services, (below). Of course, keep in mind that

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First Business Financial Services (NASDAQ:FBIZ) Is Increasing Its Dividend To $0.2275

by  on  in Business Financial News

First Business Financial Services, Inc. (NASDAQ:FBIZ) has announced that it will be increasing its dividend from last year’s comparable payment on the 18th of May to $0.2275. The payment will take the dividend yield to 3.5%, which is in line with the average for the industry.

Check out our latest analysis for First Business Financial Services

First Business Financial Services’ Earnings Will Easily Cover The Distributions

We aren’t too impressed by dividend yields unless they can be sustained over time.

First Business Financial Services has a long history of paying out dividends, with its current track record at a minimum of 10 years. While past records don’t necessarily translate into future results, the company’s payout ratio of 17% also shows that First Business Financial Services is able to comfortably pay dividends.

Looking forward, earnings per share is forecast to fall by 2.6% over the next year. But if the dividend continues along recent trends, we estimate the future payout ratio could be 20%, which we would consider to be quite comfortable looking forward, with most of the company’s earnings left over to grow the business in the future.

historic-dividend

historic-dividend

First Business Financial Services Has A Solid Track Record

The company has a sustained record of paying dividends with very little fluctuation. Since 2013, the dividend has gone from $0.14 total annually to $0.91. This implies that the company grew its distributions at a yearly rate of about 21% over that duration. It is good to see that there has been strong dividend growth, and that there haven’t been any cuts for a long time.

The Dividend Looks Likely To Grow

Investors could be attracted to the stock based on the quality of its payment history. First Business Financial Services has impressed us by growing EPS at 28% per

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First Business Financial Services’ (NASDAQ:FBIZ) Shareholders Will Receive A Bigger Dividend Than Last Year

by  on  in Business Financial News

The board of First Business Financial Services, Inc. (NASDAQ:FBIZ) has announced that it will be paying its dividend of $0.2275 on the 18th of May, an increased payment from last year’s comparable dividend. This takes the annual payment to 3.5% of the current stock price, which is about average for the industry.

See our latest analysis for First Business Financial Services

First Business Financial Services’ Dividend Forecasted To Be Well Covered By Earnings

Solid dividend yields are great, but they only really help us if the payment is sustainable.

Having distributed dividends for at least 10 years, First Business Financial Services has a long history of paying out a part of its earnings to shareholders. While past records don’t necessarily translate into future results, the company’s payout ratio of 17% also shows that First Business Financial Services is able to comfortably pay dividends.

Looking forward, earnings per share is forecast to fall by 2.6% over the next year. But assuming the dividend continues along recent trends, we believe the future payout ratio could be 20%, which we are pretty comfortable with and we think would be feasible on an earnings basis.

historic-dividend
NasdaqGS:FBIZ Historic Dividend May 4th 2023

First Business Financial Services Has A Solid Track Record

The company has a sustained record of paying dividends with very little fluctuation. Since 2013, the dividend has gone from $0.14 total annually to $0.91. This works out to be a compound annual growth rate (CAGR) of approximately 21% a year over that time. We can see that payments have shown some very nice upward momentum without faltering, which provides some reassurance that future payments will also be reliable.

The Dividend Looks Likely To Grow

The company’s investors will be pleased to have been receiving dividend income for some time. First Business Financial Services

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Buyers in 1st Company Economical Expert services (NASDAQ:FBIZ) have created a respectable return of 73% more than the previous 5 decades

by  on  in Business Financial News

The easiest way to devote in shares is to obtain exchange traded cash. But you can do a lot better than that by shopping for fantastic high quality corporations for appealing selling prices. For example, the Initial Enterprise Fiscal Products and services, Inc. (NASDAQ:FBIZ) share value is up 51% in the last 5 many years, slightly above the sector return. It really is also excellent to see that the inventory is up 11% in a 12 months.

So let us look into and see if the for a longer time time period efficiency of the enterprise has been in line with the underlying business’ development.

Check out our most current analysis for Very first Enterprise Money Solutions

To paraphrase Benjamin Graham: Above the quick expression the industry is a voting machine, but around the extended term it truly is a weighing device. A single imperfect but basic way to consider how the current market perception of a business has shifted is to look at the improve in the earnings for every share (EPS) with the share value movement.

Over half a ten years, To start with Enterprise Financial Expert services managed to improve its earnings per share at 29% a 12 months. This EPS progress is higher than the 9% average annual maximize in the share price tag. So a single could conclude that the broader sector has turn out to be much more careful to the stock. The moderately lower P/E ratio of 7.71 also indicates market place apprehension.

You can see below how EPS has adjusted more than time (find out the correct values by clicking on the graphic).

earnings-per-share-growth

earnings-for each-share-growth

We think about it beneficial that insiders have manufactured significant buys in the very last yr. Owning claimed that, most folks contemplate earnings and income

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