In the latest quarter, 4 analysts provided ratings for SmartFinancial (NYSE:SMBK), showcasing a mix of bullish and bearish perspectives.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 3 | 1 | 0 | 0 |
| Last 30D | 0 | 2 | 1 | 0 | 0 |
| 1M Ago | 0 | 1 | 0 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 0 | 0 | 0 | 0 |
Analysts have set 12-month price targets for SmartFinancial, revealing an average target of $25.5, a high estimate of $26.00, and a low estimate of $24.00. The average price target has stayed the same, reflecting a consistent view from analysts.
Diving into Analyst Ratings: An In-Depth Exploration
A comprehensive examination of how financial experts perceive SmartFinancial is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Matt Olney | Stephens & Co. | Maintains | Overweight | $26.00 | - |
| Catherine Mealor | Keefe, Bruyette & Woods | Lowers | Market Perform | $24.00 | $26.00 |
| Stephen Scouten | Piper Sandler | Raises | Overweight | $26.00 | $25.00 |
| Matt Olney | Stephens & Co. | Maintains | Overweight | $26.00 | - |
Key Insights:
- Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to SmartFinancial. This insight gives a snapshot of analysts' perspectives on the current state of the company.
- Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of SmartFinancial compared to the broader market.
- Price Targets: Gaining insights, analysts provide estimates for the future value of SmartFinancial's stock. This comparison reveals trends in analysts' expectations over time.
For valuable insights into SmartFinancial's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.
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Delving into SmartFinancial's Background
SmartFinancial Inc operates as a bank holding company for SmartBank. It offers various banking and financial services to individuals and corporate customers. The principal business of the Bank consists of attracting deposits from the general public and investing those funds, together with funds generated from operations and from principal and interest payments on loans, mainly in commercial loans, commercial and residential real estate loans, consumer loans, and residential and commercial construction loans. The primary source of revenue is interest income from earning assets, namely loans and securities.
Understanding the Numbers: SmartFinancial's Finances
Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.
Negative Revenue Trend: Examining SmartFinancial's financials over 3 months reveals challenges. As of 31 December, 2023, the company experienced a decline of approximately -12.61% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Financials sector.
Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 15.83%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 1.37%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): SmartFinancial's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.13%, the company may face hurdles in achieving optimal financial performance.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.11.
The Basics of Analyst Ratings
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
This article was generated by Benzinga's automated content engine and reviewed by an editor.