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

Five Star Bancorp (NASDAQ:FSBC) gapped down prior to trading 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.

More 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

A number of analysts recently commented on the company. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Five Star Bancorp in a research report on Monday, June 1st. DA Davidson boosted their price objective on Five Star Bancorp from $45.00 to $48.50 and gave the stock a “buy” rating in a research report on Wednesday, April 29th. Keefe, Bruyette & Woods upped their price objective on Five Star Bancorp from $41.00 to $43.00 and gave the company a “market perform” rating in a research note on Friday, May 1st. Finally, Stephens raised their target price on Five Star Bancorp from $41.00 to $43.00 and gave the company an “equal weight” rating in a research report on Wednesday, April 29th. Four analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $42.30.

Five Star Bancorp Price Performance

The stock has a market capitalization of $991.28 million, a PE ratio of 14.71 and a beta of 0.53. The stock’s 50 day simple moving average is $45.32 and its two-hundred day simple moving average is $41.26.

Five Star Bancorp (NASDAQ:FSBC) last issued its quarterly earnings results on Wednesday, July 22nd. The company reported $0.91 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.86 by $0.05. The company had revenue of $47.95 million during 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, equities research analysts predict that Five Star Bancorp will post 3.58 earnings per share for the current fiscal year.

Five Star Bancorp Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, August 10th. Shareholders of record on Monday, August 3rd will be issued a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 2.2%. The ex-dividend date of this dividend is Monday, August 3rd. Five Star Bancorp’s dividend payout ratio is 31.75%.

Insiders Place Their Bets

In other news, SVP Michael Eugene Lee sold 1,641 shares of the company’s stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $41.26, for a total transaction of $67,707.66. Following the transaction, the senior vice president owned 33,631 shares of the company’s stock, valued at $1,387,615.06. This represents a 4.65% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO James Eugene Beckwith sold 6,428 shares of the company’s stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $41.23, for a total value of $265,026.44. Following the transaction, the chief executive officer directly owned 466,586 shares in the company, valued at $19,237,340.78. This represents a 1.36% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 12,692 shares of company stock valued at $524,640 over the last ninety days. 21.79% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Five Star Bancorp

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Deprince Race & Zollo Inc. raised its holdings in Five Star Bancorp by 81.1% during the 4th quarter. Deprince Race & Zollo Inc. now owns 124,338 shares of the company’s stock valued at $4,449,000 after acquiring an additional 55,698 shares during the period. Kennedy Capital Management LLC boosted its holdings in shares of Five Star Bancorp by 14.8% in the fourth quarter. Kennedy Capital Management LLC now owns 438,831 shares of the company’s stock worth $15,701,000 after acquiring an additional 56,412 shares during the period. Inspire Investing LLC grew its position in shares of Five Star Bancorp by 348.0% in the first quarter. Inspire Investing LLC now owns 58,627 shares of the company’s stock valued at $2,211,000 after purchasing an additional 45,541 shares in the last quarter. Quantinno Capital Management LP raised its stake in shares of Five Star Bancorp by 123.6% during the 1st 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 during the period. Finally, Sei Investments Co. raised its stake in shares of Five Star Bancorp by 32.2% during the 1st quarter. Sei Investments Co. now owns 25,886 shares of the company’s stock valued at $976,000 after purchasing an additional 6,299 shares during the period. 46.94% of the stock is currently owned by institutional investors.

About Five Star Bancorp

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.