Five Star Bancorp Declares $0.20 Quarterly Dividend

Five Star Bancorp (NASDAQ:FSBC) announced a quarterly dividend on Thursday, October 17th. The company will distribute a dividend of $0.20 per share to investors of record on Monday, November 4th, with the payment scheduled for Tuesday, November 12th. This results in an annualized dividend of $0.80, providing investors with a yield of 2.65%. The ex-dividend date for this payment is also Monday, November 4th.

Five Star Bancorp has reported a dividend payout ratio of 32.3%, indicating that its earnings sufficiently cover the dividend. Analysts forecast that the company will earn $2.40 per share next year, suggesting a sustainable future payout ratio of 33.3%, ensuring the continuation of the annual dividend.

Stock Performance Overview

As of Friday, the stock price of Five Star Bancorp (NASDAQ:FSBC) opened at $30.19. The company has a market capitalization of approximately $643.65 million, a price-to-earnings ratio of 13.24, and a beta value of 0.42. In the past year, the stock has fluctuated between a low of $19.25 and a high of $31.88. The stock has maintained a 50-day moving average of $29.55 and a 200-day moving average of $26.22.

Recently, the company released its quarterly earnings report on October 28th, revealing earnings per share of $0.52 for the quarter. This figure fell short of the consensus estimate of $0.54 by $0.02. During this quarter, Five Star Bancorp recorded a net margin of 21.35% and a return on equity of 13.50%, with revenues totaling $54.05 million. Comparatively, the firm earned $0.64 per share during the same quarter in the previous year. Analysts predict an average earnings per share of 2.17 for the current fiscal year.

Analyst Insights

Several analysts have recently assessed Five Star Bancorp. Keefe, Bruyette & Woods raised their price target for the company from $27.00 to $31.00, rating it as a "market perform" in a report dated July 26th. Similarly, Stephens increased their target from $29.00 to $32.00, giving the stock an "overweight" rating. DA Davidson also raised their price target from $27.00 to $34.00 with a recommendation to "buy" the shares, both on July 26th.

Insider Trading Activity

In other corporate news, Senior Vice President Michael Eugene Lee sold 1,500 shares of Five Star Bancorp on October 31st at an average price of $30.67, totaling $46,005. Following this transaction, he retains 36,765 shares, valued at approximately $1,127,582.55. This transaction marked a minimal change in his overall shareholding. Currently, corporate insiders own 25.57% of the company’s stock.

Company Overview

Five Star Bancorp functions as the bank holding company for Five Star Bank, offering a broad array of banking products and services tailored to small and medium-sized enterprises, professionals, and individual consumers located in Northern California. The bank provides various deposit options, including money market accounts, both interest-bearing and noninterest-bearing checking accounts, savings accounts, and time deposits.

Conclusion

The announcement of a $0.20 quarterly dividend from Five Star Bancorp has attracted attention from investors. With a solid payout ratio and expectations of continued earnings growth, the company appears well positioned to sustain its dividends. Analysts continue to follow the company's performance closely, suggesting interest in its future potential.

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