Five Star Bancorp (NASDAQ:FSBC) Shares Gap Down – What’s Next?

Five Star Bancorp (NASDAQ:FSBC)’s share price gapped down before the market opened on Thursday . The stock had previously closed at $48.37, but opened at $44.82. Five Star Bancorp shares last traded at $45.9090, with a volume of 378,127 shares trading hands.

Key Five Star Bancorp News

Here are the key news stories impacting Five Star Bancorp this week:

• Positive Sentiment: Five Star Bancorp reported stronger-than-expected second-quarter results, with earnings of $0.91 per share topping estimates and revenue of about $48 million also modestly ahead of forecasts. The company also posted higher net income year over year, showing continued operating momentum. Article Title
• Positive Sentiment: The company said the proceeds will support general corporate purposes, growth initiatives, and investments in Five Star Bank, including expansion efforts such as its recently opened Lodi, California branch. Article Title
• Neutral Sentiment: Five Star Bancorp priced an underwritten offering of 2.725 million shares at $44.00 per share, with potential gross proceeds of about $113.6 million and an additional 30-day option for underwriters to buy more shares. Article Title
• Negative Sentiment: The stock sale creates dilution for existing shareholders, which can pressure the share price even when operating results are solid. Investors may also view the capital raise as a sign the company wants extra funding to support growth. Article Title

Wall Street Analysts Forecast Growth

FSBC has been the subject of several research analyst reports. Stephens lifted their price target on shares of Five Star Bancorp from $41.00 to $43.00 and gave the company an “equal weight” rating in a research note on Wednesday, April 29th. Weiss Ratings reissued a “buy (b)” rating on shares of Five Star Bancorp in a research report on Monday, June 1st. DA Davidson raised their target price on Five Star Bancorp from $45.00 to $48.50 and gave the company a “buy” rating in a research note on Wednesday, April 29th. Finally, Keefe, Bruyette & Woods boosted their target price on Five Star Bancorp from $41.00 to $43.00 and gave the company a “market perform” rating in a research report on Friday, May 1st. Four analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $42.30.

Five Star Bancorp Stock Performance

The firm has a market cap of $991.28 million, a P/E ratio of 14.71 and a beta of 0.53. The stock’s 50 day simple moving average is $45.32 and its 200 day simple moving average is $41.26.

Five Star Bancorp (NASDAQ:FSBC) last released its quarterly earnings data on Wednesday, July 22nd. The company reported $0.91 earnings per share for the quarter, beating analysts’ consensus estimates of $0.86 by $0.05. The firm had revenue of $47.95 million for the quarter, compared to analyst estimates of $47.72 million. Five Star Bancorp had a net margin of 25.23% and a return on equity of 15.32%. As a group, analysts forecast that Five Star Bancorp will post 3.58 EPS for the current fiscal year.

Five Star Bancorp Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, August 10th. Investors of record on Monday, August 3rd will be given a $0.25 dividend. The ex-dividend date of this dividend is Monday, August 3rd. This represents a $1.00 annualized dividend and a yield of 2.2%. Five Star Bancorp’s dividend payout ratio (DPR) is presently 31.75%.

Insiders Place Their Bets

In other news, CEO James Eugene Beckwith sold 6,428 shares of the stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $41.23, for a total value of $265,026.44. Following the completion of the sale, the chief executive officer directly owned 466,586 shares of the company’s stock, valued at $19,237,340.78. This represents a 1.36% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, SVP Michael Eugene Lee sold 1,641 shares of the firm’s stock in a transaction that occurred on Thursday, May 7th. The shares were sold at an average price of $41.26, for a total value of $67,707.66. Following the completion of the transaction, the senior vice president owned 33,631 shares in the company, valued at $1,387,615.06. This represents a 4.65% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 12,692 shares of company stock valued at $524,640. Corporate insiders own 21.79% of the company’s stock.

Hedge Funds Weigh In On Five Star Bancorp

Several large investors have recently bought and sold shares of the stock. Bank of America Corp DE grew its stake in shares of Five Star Bancorp by 59.6% in the 1st quarter. Bank of America Corp DE now owns 22,491 shares of the company’s stock worth $848,000 after acquiring an additional 8,402 shares in the last quarter. Quantinno Capital Management LP lifted its position in shares of Five Star Bancorp by 123.6% during the first quarter. Quantinno Capital Management LP now owns 15,956 shares of the company’s stock valued at $602,000 after purchasing an additional 8,821 shares in the last quarter. Sei Investments Co. boosted its holdings in Five Star Bancorp by 32.2% during the first quarter. Sei Investments Co. now owns 25,886 shares of the company’s stock worth $976,000 after purchasing an additional 6,299 shares during the last quarter. Dimensional Fund Advisors LP boosted its holdings in Five Star Bancorp by 12.0% during the first quarter. Dimensional Fund Advisors LP now owns 321,938 shares of the company’s stock worth $12,143,000 after purchasing an additional 34,396 shares during the last quarter. Finally, Deprince Race & Zollo Inc. grew its position in Five Star Bancorp by 24.9% in the 1st quarter. Deprince Race & Zollo Inc. now owns 155,274 shares of the company’s stock worth $5,857,000 after purchasing an additional 30,936 shares in the last quarter. 46.94% of the stock is currently owned by institutional investors.

Five Star Bancorp Company Profile

Five Star Bancorp, Inc is the bank holding company for Five Star Bank, a community-focused financial institution serving retail and commercial customers primarily in Upstate New York. Headquartered in Rochester, the company provides a range of banking and financial services designed to meet the needs of individuals, families and businesses throughout its regional footprint.

The company’s core business activities include deposit services—such as checking, savings and money market accounts—alongside consumer and mortgage lending.