Five Star Bancorp’s (FSBC) “Buy” Rating Reiterated at DA Davidson

Five Star Bancorp (NASDAQ:FSBC)‘s stock had its “buy” rating reiterated by equities researchers at DA Davidson in a research report issued on Tuesday, Benzinga reports. They currently have a $55.00 price objective on the stock. DA Davidson‘s price objective suggests a potential upside of 20.99% from the company’s previous close.

Other analysts also recently issued reports about the company. Stephens set a $51.00 price objective on Five Star Bancorp in a research note on Monday, July 27th. Weiss Ratings lowered Five Star Bancorp from a “buy (b+)” rating to a “buy (b)” rating in a report on Monday, September 21st. Finally, Zacks Research raised Five Star Bancorp from a “strong sell” rating to a “hold” rating in a research report on Friday, August 28th. Three analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat, Five Star Bancorp has a consensus rating of “Moderate Buy” and an average target price of $47.25.

Five Star Bancorp Price Performance

Shares of NASDAQ:FSBC traded up $0.96 during midday trading on Tuesday, hitting $45.46. 218,987 shares of the company’s stock were exchanged, compared to its average volume of 130,271. The stock has a 50 day moving average price of $44.42 and a 200-day moving average price of $42.59. The company has a market cap of $1.12 billion, a PE ratio of 13.45 and a beta of 0.55. Five Star Bancorp has a 12 month low of $32.20 and a 12 month high of $50.26.

Five Star Bancorp (NASDAQ:FSBC) last posted its earnings results on Tuesday, October 27th. The company reported $0.92 earnings per share for the quarter, topping analysts’ consensus estimates of $0.85 by $0.07. The company had revenue of $52.62 million for the quarter, compared to analyst estimates of $51.31 million. Five Star Bancorp had a net margin of 25.92% and a return on equity of 15.92%. On average, analysts anticipate that Five Star Bancorp will post 3.50 EPS for the current fiscal year.

Institutional Trading of Five Star Bancorp

Several institutional investors and hedge funds have recently made changes to their positions in FSBC. Dimensional Fund Advisors LP boosted its holdings in Five Star Bancorp by 12.0% during the first quarter. Dimensional Fund Advisors LP now owns 321,938 shares of the company’s stock worth $12,143,000 after purchasing an additional 34,396 shares during the last quarter. Ieq Capital LLC bought a new stake in Five Star Bancorp in the 2nd quarter worth about $1,203,000. Bank of New York Mellon Corp bought a new stake in Five Star Bancorp in the 2nd quarter worth about $4,642,000. Squarepoint Ops LLC bought a new stake in Five Star Bancorp in the 2nd quarter worth about $1,994,000. Finally, Connor Clark & Lunn Investment Management Ltd. purchased a new stake in Five Star Bancorp in the 2nd quarter valued at about $795,000. Hedge funds and other institutional investors own 46.94% of the company’s stock.

Key Stories Impacting Five Star Bancorp

Here are the key news stories impacting Five Star Bancorp this week:

• Positive Sentiment: Five Star reported third-quarter net income of $21.9 million, up from $19.4 million in the prior quarter and $16.3 million a year earlier. Earnings were $0.92 per share, exceeding analyst estimates of approximately $0.85-$0.86, while revenue of $52.62 million also topped expectations. Five Star Bancorp Announces Third Quarter 2026 Results
• Positive Sentiment: Core banking performance strengthened: net interest income rose 11% sequentially to $50.9 million, net interest margin improved to 3.69%, and the efficiency ratio improved to 39.13%. These gains were supported by higher-yielding loan growth and lower funding costs.
• Positive Sentiment: Loans held for investment increased $184.5 million, or 4%, during the quarter and were up 21% year over year. Non-wholesale deposits grew 2%, while the company reported a $0.25-per-share dividend and approximately $130 million in net proceeds from a public stock offering to fund future growth. Five Star Bancorp Reports Strong Q3 Earnings and Growth
• Neutral Sentiment: The capital raise strengthened FSBC’s balance sheet, lifting its common equity Tier 1 ratio to 12.52%, but the issuance of 3.13 million new shares increased the share count by roughly 11%, which may limit near-term per-share benefit from earnings growth.
• Neutral Sentiment: Short interest was reported at zero shares as of October 26, suggesting little evidence of bearish positioning or short-covering pressure.
• Negative Sentiment: Nonperforming loans rose to $13.3 million from $3.1 million at year-end, though the nonperforming-loan ratio improved slightly sequentially to 0.28% and the largest troubled credit remains well collateralized.
• Negative Sentiment: Other comprehensive loss reached $3.0 million, non-interest income declined 10% sequentially, and return on average equity fell to 15.04% from 16.67%, highlighting investment-market volatility and the costs of expansion.

Five Star Bancorp Company Profile

Five Star Bancorp is the bank holding company for Five Star Bank, a community bank headquartered in the Sacramento, California, area. The bank provides commercial banking services to businesses, professionals, nonprofit organizations and individuals, with an emphasis on relationship-based banking and local market expertise.

Five Star Bank offers a range of deposit products, including checking, savings, money market and time deposit accounts, along with commercial lending solutions. Its lending activities include commercial real estate, construction and land development, commercial and industrial, small business and residential real estate loans.