Five Star Bancorp Announces $0.20 Quarterly Dividend

Five Star Bancorp (NASDAQ:FSBC) declared a quarterly dividend of $0.20 per share on Thursday, October 17th. Shareholders registered by November 4th will receive this payment on November 12th, totaling an annual dividend of $0.80. The dividend yield based on the current stock price stands at 2.65%. The ex-dividend date is also set for November 4th.

As for its financial health, Five Star Bancorp boasts a dividend payout ratio of 32.3%, which suggests that the earnings are more than sufficient to cover the announced dividend. Analysts project the bank's earnings will reach $2.40 per share in the upcoming year. Based on this forecast, the anticipated future payout ratio is slightly higher at 33.3%, indicating continued capacity to maintain the dividend.

Current Stock Performance

The company's stock opened at $30.19 on Friday and holds a market capitalization of approximately $643.65 million. The price-to-earnings ratio is recorded at 13.24, while the stock's beta is 0.42, suggesting less volatility than the market. Five Star Bancorp has experienced a year-over-year price fluctuation, with a low of $19.25 and a high of $31.88. The stock’s 50-day moving average is $29.55, and the 200-day moving average is $26.22.

In its most recent quarterly earnings report, released on October 28th, Five Star Bancorp reported earnings per share (EPS) of $0.52, falling short of the consensus estimate of $0.54 by $0.02. The bank achieved a net margin of 21.35% and a return on equity of 13.50%, with total revenue for the quarter amounting to $54.05 million. This compares to an EPS of $0.64 for the same quarter the previous year. Analysts currently expect the company to achieve an annual EPS of $2.17 for the fiscal year.

Analyst Ratings and Insights

Recent evaluations from various analysts have highlighted a positive outlook for Five Star Bancorp. Keefe, Bruyette & Woods raised their price target for the stock from $27 to $31, assigning it a "market perform" rating. Additionally, Stephens increased their price target from $29 to $32 and rated the stock as "overweight." In a similar vein, DA Davidson lifted its price target from $27 to $34, giving Five Star Bancorp a "buy" rating.

Insider Activity

In recent insider trading, Senior Vice President Michael Eugene Lee sold 1,500 shares on October 31st at an average price of $30.67, amounting to a total transaction value of $46,005. Following this sale, Lee retains 36,765 shares valued at approximately $1,127,582.55. Currently, corporate insiders hold around 25.57% of the company’s stock.

About Five Star Bancorp

Five Star Bancorp operates as a holding company for Five Star Bank, delivering various banking services to individuals and businesses, especially in Northern California. The bank provides multiple deposit products, including savings accounts, checking accounts, and term certificates.

dividend, financial, stocks