Wall Street Zen Downgrades FinWise Bancorp (NASDAQ:FINW) to Sell

FinWise Bancorp (NASDAQ:FINW) was downgraded by analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a research note issued on Saturday.

Several other equities research analysts have also recently weighed in on the stock. Zacks Research upgraded shares of FinWise Bancorp from a “strong sell” rating to a “hold” rating in a research report on Tuesday, June 30th. Raymond James Financial reiterated an “outperform” rating and set a $16.00 price objective on shares of FinWise Bancorp in a research report on Friday. Finally, Weiss Ratings cut shares of FinWise Bancorp from a “hold (c+)” rating to a “hold (c)” rating in a research note on Wednesday, May 6th. Two analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $19.00.

FinWise Bancorp Price Performance

NASDAQ FINW opened at $13.76 on Friday. The stock has a market capitalization of $188.65 million, a PE ratio of 14.33 and a beta of 0.70. The business has a 50 day simple moving average of $14.19 and a two-hundred day simple moving average of $15.55. FinWise Bancorp has a 1-year low of $12.82 and a 1-year high of $22.49.

FinWise Bancorp (NASDAQ:FINW) last released its quarterly earnings data on Wednesday, July 29th. The company reported $0.15 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.24 by ($0.09). The firm had revenue of $24.38 million during the quarter, compared to the consensus estimate of $47.11 million. FinWise Bancorp had a return on equity of 7.10% and a net margin of 6.76%. On average, analysts anticipate that FinWise Bancorp will post 1.18 EPS for the current fiscal year.

FinWise Bancorp announced that its Board of Directors has initiated a share repurchase program on Thursday, May 21st that authorizes the company to repurchase 685,000,000,000 shares. This repurchase authorization authorizes the company to repurchase up to 5% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s leadership believes its shares are undervalued.

Institutional Investors Weigh In On FinWise Bancorp

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Bank of America Corp DE lifted its holdings in shares of FinWise Bancorp by 4,847.1% in the 4th quarter. Bank of America Corp DE now owns 3,463 shares of the company’s stock worth $55,000 after acquiring an additional 3,393 shares during the last quarter. Cubist Systematic Strategies LLC purchased a new position in shares of FinWise Bancorp during the 1st quarter worth about $104,000. Goldman Sachs Group Inc. grew its holdings in FinWise Bancorp by 186.3% during the 1st quarter. Goldman Sachs Group Inc. now owns 40,136 shares of the company’s stock valued at $703,000 after purchasing an additional 26,115 shares during the last quarter. Empowered Funds LLC grew its holdings in FinWise Bancorp by 7.1% during the 1st quarter. Empowered Funds LLC now owns 24,052 shares of the company’s stock valued at $421,000 after purchasing an additional 1,591 shares during the last quarter. Finally, Jane Street Group LLC raised its position in FinWise Bancorp by 169.2% in the 1st quarter. Jane Street Group LLC now owns 33,196 shares of the company’s stock worth $581,000 after purchasing an additional 20,866 shares during the period. Hedge funds and other institutional investors own 35.41% of the company’s stock.

FinWise Bancorp Company Profile

FinWise Bancorp is the bank holding company for FinWise Bank, a digital‐first community bank headquartered in Lindon, Utah. The company specializes in providing commercial lending and deposit products to marketplace lending platforms, fintech companies and small to mid‐sized businesses across the United States. FinWise Bancorp operates through its wholly owned subsidiary, FinWise Bank, which is FDIC‐insured and leverages a technology‐driven model to deliver banking services efficiently.

The company’s primary business activities include participant financing arrangements for marketplace lenders and other fintech platforms, as well as direct commercial loans.