First Internet Bancorp (NASDAQ: INBK), a leading provider of online business and retail banking products and services, was the subject of a recent report by Keefe, Bruyette & Woods. The research firm decided to lower the bank’s target price from $30.00 to $27.00, suggesting a potential upside of 66.98% from the company’s previous close.
Although analysts at Keefe, Bruyette & Woods First Internet Bancorp gave its stock a “market perform” rating, the news may have surprised some investors. The news comes shortly after First Internet Bancorp reported its quarterly earnings data, which came in below consensus estimates. The bank earned $0.68 per share in the fourth quarter of 2020, which was $0.05 per share below analyst forecasts.
In addition, First Internet Bancorp announced that it had earned $27.48 million in revenue for the quarter, versus the $26.70 million forecast by industry experts.
Despite these less-than-stellar earnings results, First Internet Bancorp maintains its reputation as an industry leader in online banking and financial services. They offer a range of services including senior residential mortgage loans, consumer loans and credit cards, and commercial real estate loans throughout Indiana and other parts of the Midwest.
The multifaceted approach has already proven effective with office space, retail space, industrial areas and multi-tenant rental finance options available through their diverse network offerings.
Looking ahead to 2021 with improved prospects for vaccination efforts and an inevitable economic recovery, First Internet Bancorp is expected to bounce back with vital growth opportunities in digital banking, which will continue to grow rapidly during pandemic conditions.
In summary, despite the slight downgrade in terms of pricing alignment, immediate future investments can still be valuable given the scale of the growth potential emerging in digital banking. First Internet Bancorp offers a potentially revitalized banking services model, and as the nation remains reliant on online commerce and remote access, the company will both maintain its place among its peers and capitalize on future growth opportunities that may arise.
First Internet Bancorp (INBK) maintains a consensus rating of Hold despite the recent trading slump
First Internet Bancorp (INBK) recently caught the attention of StockNews.com, which began coverage on March 16 with a rating of Hold. The rating is shared by five other analysts, giving INBK a consensus rating of “hold” with an average target price of $31.75.
On Thursday, INBK saw a decline in trading at $16.17 per share, with shares being converted up to 79,851 times, compared to its average volume of 68,268 shares. Despite this recent price drop, First Internet Bancorp has maintained a market cap of $144.56 million with a P/E of 4.37 and a beta of 0.47.
INBK is a company specializing in online business and retail banking products and services. It provides senior residential mortgage loans in addition to credit card and consumer loan options in Indiana and other regions throughout the Midwest specializing in office, retail, industrial units and multi-family structures.
In terms of investing, there also appears to be institutional interest, with several large investors increasing their holdings significantly in recent quarters, such as Barclays PLC, which has increased its stake by more than fivefold since December.
In addition, on Wednesday, March 29, Director Ann C. Dee purchased two thousand shares at an average price of $17.26 per share, equivalent to approximately $34,520, according to Securities & Exchange Commission filings. Additionally, the same director also made multiple purchases, buying 1,000 shares for $27.43 each on Thursday, February 23 — paying nearly double the amount she bought them for just over a month later.
Given INBK’s steady rise over the past year, which has hit highs near $46 per share, it seems likely that Director Ann C.Dee remains upbeat about the future growth potential of her investment at this time, especially considering that she Nearly $82,000 worth of net purchases recorded over 4,000 ownership interest – an amount that is significant compared to the company’s overall public interest.