Financial Institutions, Inc. (NASDAQ:FISI) Sees Significant Increase in Short Interest

Financial Institutions, Inc. (NASDAQ:FISI) experienced a notable rise in short interest throughout January. As of January 15th, the total short interest reached 159,700 shares, reflecting a robust increase of 26.8% compared to the 125,900 shares reported on December 31st. Given the average daily trading volume of 101,000 shares, the current days-to-cover ratio stands at 1.6 days.

In other developments, Director Robert N. Latella bought 4,000 shares of Financial Institutions on December 13th, at an average price of $25.00 each, amounting to a total investment of $100,000. Following this purchase, Latella now holds 16,000 shares of the company's stock, with a market value of $400,000. This acquisition marked a 33.33% increase in their ownership. This transaction was reported in a filing with the Securities and Exchange Commission, which is available on their website. Currently, insiders own 2.68% of Financial Institutions' stock.

Institutional Investments in Financial Institutions

A number of institutional investors have been actively trading shares of Financial Institutions, either increasing or decreasing their holdings. For example, R Squared Ltd initiated a new stake in Financial Institutions valued at approximately $30,000 during the fourth quarter. US Bancorp DE increased its investment in Financial Institutions by a significant 119.3% in the third quarter, owning 2,572 shares valued at $66,000 after acquiring an additional 1,399 shares. Similarly, SG Americas Securities LLC established a new position in Financial Institutions estimated at around $164,000 in the same quarter. CWM LLC also raised its stake in Financial Institutions by 50.3%, totaling 8,172 shares worth $208,000 after purchasing an additional 2,734 shares. Furthermore, Stonebrook Private Inc. acquired a new investment in Financial Institutions valued at about $218,000. Currently, institutional investors hold 60.45% of the stock.

Financial Institutions Stock Performance

On Friday, NASDAQ FISI's stock fell by 2.9%, dropping $0.79 to reach $26.37. The trading volume for the day was 415,822 shares, surpassing the average daily volume of 118,414 shares. The market capitalization of Financial Institutions is approximately $408.05 million, with a price-to-earnings ratio of 8.29 and a beta of 0.91. The stock has fluctuated within the last year, having a low of $16.29 and a high of $29.34. The company's 50-day moving average price is $27.07, and the 200-day moving average is $25.81. Additionally, it has a debt-to-equity ratio of 0.26, a quick ratio of 0.86, and a current ratio of 0.86.

Financial Institutions recently announced its quarterly earnings results, which were disclosed on January 30th. The company reported earnings per share (EPS) of $0.54, falling short of the consensus estimate of $0.74 by $0.20. Financial Institutions posted a net margin of 13.72% and a return on equity of 11.32%. Analysts predict that Financial Institutions will achieve an EPS of 3.31 for the current year.

Dividend Declaration by Financial Institutions

The company has also declared a quarterly dividend, which was distributed to shareholders on January 2nd. Those on record as of December 13th received a dividend of $0.30 per share. This equates to an annualized dividend of $1.20 and a dividend yield of 4.55%, with the ex-dividend date set for December 13th. Currently, Financial Institutions maintains a payout ratio of -82.76%.

Analysis of Analyst Ratings

Several analysts have recently reviewed Financial Institutions, resulting in various ratings. On December 18th, StockNews.com downgraded Financial Institutions from a “buy” to a “hold” rating. Keefe, Bruyette & Woods adjusted their price target from $27.00 to $28.00 while maintaining a “market perform” rating on December 4th. Stephens reiterated an “equal weight” rating and established a target price of $33.00 for the stock. Additionally, Piper Sandler initiated coverage on Financial Institutions, assigning an “overweight” rating with a price target of $33.00.

Company Background

Financial Institutions, Inc operates as the parent company of Five Star Bank, which is chartered to provide banking and financial services to individuals, municipalities, and businesses across New York. Among its offerings are various checking and savings account programs, including money market accounts, certificates of deposit, sweep investments, and individual retirement accounts.

Financial, Institutions, Investment