SmartFinancial EVP Sells Shares Amid Institutional Accumulation
SmartFinancial's EVP reduced his equity stake by 2.02% while institutional investors increased their positions during the second quarter.
Rhett Jordan, Executive Vice President at SmartFinancial Inc, sold 230 shares of the company's stock on September 14, 2023. The transaction was executed at an average price of $52.05 per share, resulting in a total sale value of $11,971.50. Following this divestment, Jordan retains ownership of 11,142 shares, which are valued at approximately $579,941 based on recent trading levels.
The sale represents a 2.02% reduction in the executive's total position in the bank. The disclosure was filed with the Securities and Exchange Commission, providing transparency into the insider's equity adjustments. As reported by GN stocks/nasdaq, the move occurred against a backdrop of relatively stable institutional interest in the financial institution.
Institutional Investors Increase Positions
While the executive reduced his holdings, several institutional entities expanded their stakes in SmartFinancial during the second quarter. Squarepoint Ops LLC increased its ownership by 106.6%, adding 7,965 shares to a total position of 15,439 shares valued at $724,000. Similarly, the California State Teachers Retirement System significantly boosted its holdings by 1,111.2%, purchasing an additional 9,212 shares to reach a total of 10,041 shares worth $471,000.
Other notable increases include Engineers Gate Manager LP, which raised its stake by 17.7% to hold 6,570 shares, and Sequoia Financial Advisors LLC, which initiated a new position valued at $371,000. Public Employees Retirement System of Ohio also entered the register with a new stake of $47,000. These actions contribute to a broader trend where institutional investors currently hold 58.78% of the company's outstanding stock.
Financial Metrics and Dividend Yield
SmartFinancial maintains a market capitalization of $890.29 million, with a price-to-earnings ratio of 24.33. The company's balance sheet reflects a conservative debt profile, indicated by a debt-to-equity ratio of 0.10. Liquidity positions are steady, with both the current ratio and quick ratio standing at 0.90, suggesting sufficient short-term asset coverage relative to liabilities.
The bank recently distributed a quarterly dividend of $0.09 per share on August 17, 2023. This payout annualizes to $0.36 per share, translating to a yield of 0.7% based on the current share price. The payout ratio stands at 10.62%, indicating that the company retains the majority of its earnings for reinvestment or debt management rather than distribution to shareholders.
Analyst Consensus and Price Targets
Recent research notes from equity analysts reflect varying outlooks for the stock. Benchmark raised its price target from $56.00 to $60.00 in August, assigning a buy rating. Conversely, Keefe, Bruyette & Woods adjusted its target from $46.00 to $50.00 with a market perform rating. Raymond James Financial reaffirmed a strong-buy stance with a $58.00 target, while Stephens set an equal weight rating with a $47.00 target.
The aggregate consensus from analysts is a moderate buy rating, with a consensus price target of $50.42. This target sits slightly below the recent average trading price of $52.07, suggesting that current market prices may already reflect much of the expected near-term growth. The stock's beta of 0.68 indicates lower volatility relative to the broader market.
