Financial Institutions (NASDAQ:FISI) Downgraded to “Hold” Rating by Wall Street Zen

Wall Street Zen downgraded shares of Financial Institutions (NASDAQ:FISI) from a buy rating to a hold rating in a report published on Saturday.

Several other brokerages have also recently issued reports on FISI. Keefe, Bruyette & Woods boosted their price target on Financial Institutions from $34.00 to $35.00 and gave the company an “outperform” rating in a research report on Monday, October 27th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Financial Institutions in a research note on Monday, December 29th. Zacks Research upgraded Financial Institutions to a “hold” rating in a research note on Thursday, December 18th. Finally, Piper Sandler reiterated a “neutral” rating and issued a $34.00 price objective on shares of Financial Institutions in a research report on Wednesday, December 17th. One analyst has rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $33.67.

Financial Institutions Stock Performance

Shares of FISI opened at $32.94 on Friday. The company has a current ratio of 0.87, a quick ratio of 0.87 and a debt-to-equity ratio of 0.19. The firm has a market cap of $663.08 million, a PE ratio of 9.12 and a beta of 0.70. The company’s 50 day simple moving average is $31.70 and its 200-day simple moving average is $28.77. Financial Institutions has a 12-month low of $20.97 and a 12-month high of $33.73.

Financial Institutions (NASDAQ:FISI) last released its quarterly earnings results on Thursday, January 29th. The bank reported $0.96 EPS for the quarter, beating the consensus estimate of $0.95 by $0.01. Financial Institutions had a net margin of 19.81% and a return on equity of 12.75%. The firm had revenue of $64.12 million during the quarter, compared to the consensus estimate of $62.99 million. As a group, equities analysts predict that Financial Institutions will post 3.3 EPS for the current year.

Financial Institutions Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, January 2nd. Investors of record on Monday, December 15th were paid a $0.31 dividend. The ex-dividend date was Monday, December 15th. This represents a $1.24 annualized dividend and a dividend yield of 3.8%. Financial Institutions’s dividend payout ratio (DPR) is -90.51%.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Geode Capital Management LLC raised its stake in shares of Financial Institutions by 6.2% during the 2nd quarter. Geode Capital Management LLC now owns 477,865 shares of the bank’s stock worth $12,274,000 after buying an additional 27,770 shares during the last quarter. PL Capital Advisors LLC raised its position in Financial Institutions by 8.0% during the second quarter. PL Capital Advisors LLC now owns 1,361,510 shares of the bank’s stock worth $34,964,000 after acquiring an additional 100,500 shares during the last quarter. Dynamic Technology Lab Private Ltd raised its position in Financial Institutions by 98.3% during the second quarter. Dynamic Technology Lab Private Ltd now owns 31,811 shares of the bank’s stock worth $817,000 after acquiring an additional 15,768 shares during the last quarter. Allworth Financial LP lifted its holdings in shares of Financial Institutions by 925.2% in the second quarter. Allworth Financial LP now owns 2,850 shares of the bank’s stock valued at $73,000 after purchasing an additional 2,572 shares in the last quarter. Finally, Bayview Asset Management LLC grew its position in shares of Financial Institutions by 9.4% in the second quarter. Bayview Asset Management LLC now owns 87,584 shares of the bank’s stock valued at $2,249,000 after purchasing an additional 7,499 shares during the last quarter. 60.45% of the stock is owned by hedge funds and other institutional investors.

Key Financial Institutions News

Here are the key news stories impacting Financial Institutions this week:

• Positive Sentiment: Q4 beat on EPS and revenue; profitability restored — FISI reported Q4 net income of ~$20.0M and EPS of $0.96, modestly topping consensus and marking a sharp turnaround from a large loss a year earlier. The result reinforces the company’s return to profitability and supports analyst confidence. Business Insider: Net Income Report
• Positive Sentiment: Full?year turnaround, record net interest income and margin expansion — FY2025 net income available to common shareholders was ~$73.4M vs. a FY2024 loss; net interest income hit record quarterly and annual levels and full?year NIM expanded materially year?over?year. Those trends improve core earnings durability. QuiverQuant: Q4 & FY2025 Results
• Positive Sentiment: Capital and rating improvement via subordinated notes; buybacks and dividend raise — The company completed an $80M private placement of subordinated notes (BBB?/Stable from Kroll), used proceeds to redeem older debt, repurchased ~336,869 shares in Q4 and raised the quarterly dividend ~3%. These moves signal stronger capital flexibility and shareholder returns. QuiverQuant: Capital/Dividend/Buyback Details
• Neutral Sentiment: Management remarks and investor materials available — The full earnings presentation and call transcript were posted (useful for detail on strategy, guidance and deposit/loan trends). Review management commentary for color on deposit retention and 2026 priorities. Seeking Alpha: Q4 Presentation Seeking Alpha: Call Transcript
• Neutral Sentiment: Short?interest data shows essentially no reported short interest (data appears anomalous); not currently a clear driver. (Report dated Jan 28.)
• Negative Sentiment: Quarterly deposit decline and higher short?term borrowings — Total deposits fell ~$151.5M QoQ (seasonality and fewer brokered deposits), and short?term borrowings rose; deposit retention/acquisition is flagged as a 2026 focus area and could pressure funding costs if trends continue. QuiverQuant: Deposit/Funding Details
• Negative Sentiment: Credit costs and allowance movements — Net charge?offs and provision levels ticked up modestly (net charge?offs annualized ~0.24% for 2025) while the allowance for credit losses on loans edged down to ~1.02% of loans. Investors should monitor credit trending as loans grow. QuiverQuant: Asset Quality

Financial Institutions Company Profile

Financial Institutions, Inc (NASDAQ: FISI) is a non-diversified, closed-end management investment company that seeks to provide tax-advantaged income to shareholders. The company invests primarily in investment-grade municipal obligations issued by states, municipalities and government agencies across the United States. By focusing on high-credit-quality bonds, Financial Institutions aims to deliver current income that is exempt from federal income tax.

In constructing its portfolio, the company may also utilize money market instruments and repurchase agreements to manage liquidity and facilitate efficient settlement.