Provident Financial Services Inc. [PFS] Stock trading around $13.65 per share: What’s Next?

Provident Financial Services Inc. [NYSE: PFS] traded at a low on 07/31/20, posting a -4.55 loss after which it closed the day’ session at $13.65. The company report on July 30, 2020 that Provident Financial Services, Inc. Announces Second Quarter Earnings and Declares Quarterly Cash Dividend.

Provident Financial Services, Inc. (NYSE:PFS) reported net income of $14.3 million, or $0.22 per basic and diluted share, for the three months ended June 30, 2020, compared to net income of $24.4 million, or $0.38 per basic and diluted share, for the three months ended June 30, 2019. For the six months ended June 30, 2020, the Company reported net income of $29.2 million, or $0.45 per basic and diluted share, compared to net income of $55.3 million, or $0.85 per basic and diluted share, for the same period last year.

The Company’s earnings for the three and six months ended June 30, 2020 were adversely impacted by elevated provisions for credit losses primarily related to the current weak economic forecast attributable to the COVID-19 pandemic, combined with the January 1, 2020 adoption of a new accounting standard that requires the current recognition of allowances for losses expected to be incurred over the life of covered assets (“CECL”). For the three and six months ended June 30, 2020, provisions for credit losses and off-balance sheet credit exposures totaled $16.2 million and $31.9 million, respectively. The Company’s earnings were further impacted by expenses related to the Company’s pending acquisition of SB One Bancorp of $683,000 and $1.1 million, for the three and six months ended June 30, 2020, respectively, and by COVID-19 related costs which totaled $1.0 million for both the three and six months ended June 30, 2020.

The results of the trading session contributed to over 3189159 shares changing hands. Over the past one week, the price volatility of Provident Financial Services Inc. stands at 4.69% while the volatility over the past one month is 4.25%.

The market cap for PFS stock reached $944.44 million, with 64.39 million shares outstanding and 60.64 million shares in the current float. Compared to the average trading volume of 405.00K shares, PFS reached a trading volume of 3189159 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Provident Financial Services Inc. [PFS]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for PFS shares is $16.40 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on PFS stock is a recommendation set at 2.60. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Boenning & Scattergood have made an estimate for Provident Financial Services Inc. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on March 13, 2020. While these analysts kept the previous recommendation, RBC Capital Mkts raised their target price to Sector Perform. The new note on the price target was released on October 11, 2019, representing the official price target for Provident Financial Services Inc. stock.

The Average True Range (ATR) for Provident Financial Services Inc. is set at 0.66, with the Price to Sales ratio for PFS stock in the period of the last 12 months amounting to 2.57. The Price to Book ratio for the last quarter was 0.62, with the Price to Cash per share for the same quarter was set at 7.96. Price to Free Cash Flow for PFS in the course of the last twelve months was 15.95.

How has PFS stock performed recently?

Provident Financial Services Inc. [PFS] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -5.34. With this latest performance, PFS shares dropped by 0.00% in over the last four-week period, additionally sinking by -40.16% over the last 6 months – not to mention a drop of -43.08% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for PFS stock in for the last two-week period is set at 46.65, with the RSI for the last a single of trading hit 42.86, and the three-weeks RSI is set at 48.46 for Provident Financial Services Inc. [PFS]. The present Moving Average for the last 50 days of trading for this stock 13.75, while it was recorded at 14.20 for the last single week of trading, and 18.61 for the last 200 days.

Provident Financial Services Inc. [PFS]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Provident Financial Services Inc. [PFS] shares currently have an operating margin of +34.01. Provident Financial Services Inc.’s Net Margin is presently recorded at +25.87.

Return on Total Capital for PFS is now 5.50, given the latest momentum, and Return on Invested Capital for the company is 5.49. Return on Equity for this stock inclined to 8.12, with Return on Assets sitting at 1.15. When it comes to the capital structure of this company, Provident Financial Services Inc. [PFS] has a Total Debt to Total Equity ratio set at 82.61. Additionally, PFS Total Debt to Total Capital is recorded at 45.24, with Total Debt to Total Assets ending up at 11.89. Long-Term Debt to Equity for the company is recorded at 43.13, with the Long-Term Debt to Total Capital now at 23.62.

Reflecting on the efficiency of the workforce at the company, Provident Financial Services Inc. [PFS] managed to generate an average of $116,356 per employee.

Earnings analysis for Provident Financial Services Inc. [PFS]

With the latest financial reports released by the company, Provident Financial Services Inc. posted 0.49/share EPS, while the average EPS was predicted by analysts to be reported at 0.45/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 8.90%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for PFS. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Provident Financial Services Inc. go to 8.00%.

Insider trade positions for Provident Financial Services Inc. [PFS]

There are presently around $681 million, or 68.70% of PFS stock, in the hands of institutional investors. The top three institutional holders of PFS stocks are: BLACKROCK INC. with ownership of 9,949,879, which is approximately -1.187% of the company’s market cap and around 2.40% of the total institutional ownership; VANGUARD GROUP INC, holding 7,180,023 shares of the stock with an approximate value of $98.01 million in PFS stocks shares; and DIMENSIONAL FUND ADVISORS LP, currently with $78.45 million in PFS stock with ownership of nearly 0.653% of the company’s market capitalization.

Positions in Provident Financial Services Inc. stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 91 institutional holders increased their position in Provident Financial Services Inc. [NYSE:PFS] by around 3,705,570 shares. Additionally, 78 investors decreased positions by around 2,697,838 shares, while 33 investors held positions by with 43,495,270 shares. The mentioned changes placed institutional holdings at 49,898,678 shares, according to the latest SEC report filing. PFS stock had 27 new institutional investments in for a total of 1,367,613 shares, while 35 institutional investors sold positions of 1,076,251 shares during the same period.

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