Sierra Bancorp (NASDAQ: BSRR) saw its stock price rise above its two hundred-day moving average during trading on February 2, 2024. The stock, which has a moving average of $31.30, peaked at $38.05 before closing at $37.27, with a trading volume of 74,572 shares. This upward movement has prompted discussions about the stock’s potential, with analysts weighing in on its future.
Analyst Ratings Boost Confidence
Several research firms have recently provided updates on Sierra Bancorp’s stock. Notably, DA Davidson raised its price target from $39.00 to $44.00, maintaining a “buy” rating as of February 3, 2024. Meanwhile, Keefe, Bruyette & Woods adjusted their price objective from $32.00 to $33.00, offering a “market perform” rating.
On the same day, Zacks Research upgraded Sierra Bancorp from a “hold” to a “strong-buy” rating. Overall, one analyst has issued a “strong buy” rating, two have given a “buy” rating, and one has assigned a “hold” rating. According to MarketBeat, the stock’s consensus rating stands at “buy” with a target price of $38.50.
Strong Earnings and Dividend Increase
Sierra Bancorp recently announced its earnings results for the quarter ending February 2, 2024. The company reported earnings per share of $0.97, surpassing analysts’ expectations of $0.85 by $0.12. The firm generated revenue of $39.16 million, which was slightly below the forecast of $40.04 million. The firm reported a net margin of 20.96% and a return on equity of 11.90%. Analysts predict an earnings per share of 2.95 for the current fiscal year.
In a notable development, Sierra Bancorp announced an increase in its quarterly dividend to $0.26, up from the previous $0.25. This dividend will be paid on February 17, 2024, to shareholders who are on record by February 9, 2024. This adjustment brings the annualized dividend to $1.04 with a yield of 2.8%, and the company’s dividend payout ratio currently stands at 33.33%.
Insider Activity and Institutional Investments
Recent insider transactions reveal that Director James C. Holly sold 5,000 shares at an average price of $37.93, totaling $189,650. Following this transaction, Holly retains 302,970 shares valued at approximately $11.49 million, marking a 1.62% decrease in his position. Another director, Julie G. Castle, sold 750 shares for a total of $28,447.50, resulting in a 23.58% reduction in her ownership.
In addition to insider sales, several institutional investors have recently adjusted their positions in Sierra Bancorp. Raymond James Financial Inc. acquired a new stake valued at approximately $26,000. Russell Investments Group Ltd. significantly increased its holdings by 3,714.3% in the third quarter, now owning 1,068 shares worth $31,000. Other notable investors include Tower Research Capital LLC, which boosted its holdings by 57.7%, and BNP Paribas Financial Markets, which grew its position by 121.6%.
Currently, hedge funds and institutional investors collectively own 55.40% of Sierra Bancorp’s stock, reflecting significant interest in the company’s performance.
Sierra Bancorp, based in Porterville, California, operates through its banking subsidiary, providing a range of financial services and focusing on relationship banking within local markets. As the company continues to navigate the financial landscape, its recent performance and positive analyst ratings may influence investor sentiment moving forward.
