Provident Financial Services (NYSE:PFS) Reaches New 12-Month High After Better-Than-Expected Earnings

Provident Financial Services, Inc (NYSE:PFS) shares hit a new 52-week high on Wednesday following a stronger than expected earnings report. The stock traded as high as $22.00 and last traded at $21.8080, with a volume of 259008 shares. The stock had previously closed at $20.83.

The savings and loans company reported $0.64 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.56 by $0.08. The firm had revenue of $224.74 million for the quarter, compared to analyst estimates of $224.08 million. Provident Financial Services had a return on equity of 9.62% and a net margin of 18.76%.Provident Financial Services’s revenue was up 9.6% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.37 EPS.

Provident Financial Services Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, November 28th. Stockholders of record on Friday, November 14th were paid a $0.24 dividend. The ex-dividend date of this dividend was Friday, November 14th. This represents a $0.96 annualized dividend and a dividend yield of 4.4%. Provident Financial Services’s dividend payout ratio (DPR) is presently 48.98%.

Provident Financial Services declared that its Board of Directors has authorized a share repurchase plan on Monday, January 26th that allows the company to repurchase $2.81 million in shares. This repurchase authorization allows the savings and loans company to buy up to 0.1% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s board believes its stock is undervalued.

More Provident Financial Services News

Here are the key news stories impacting Provident Financial Services this week:

• Positive Sentiment: Q4 earnings and revenue beat consensus: Provident reported $0.64 EPS vs. $0.56 expected and revenue roughly in line with estimates; EPS and net income rose materially year-over-year, showing margin improvement and higher ROE. Press Release
• Positive Sentiment: Board authorized a new repurchase program to buy up to ~2.81M shares (about 2.15% of outstanding), signaling confidence in the balance sheet and a concrete path to boost EPS through share reduction. Management comments emphasize capital strength and returning capital to shareholders. Repurchase Program Release
• Neutral Sentiment: Analyst and media coverage provides detail and context on key metrics (loan growth, margins, provision levels); these write-ups help investors dig into sustainability of the beat but don’t materially change the near-term view. Zacks Key Metrics
• Neutral Sentiment: Full earnings call/transcript and Q4 snapshot are available for details on guidance, loan credit trends and capital ratios; useful for assessing whether beats are one-time or recurring. Earnings Call Transcript
• Negative Sentiment: Insider selling activity is noted in third‑party summaries; while not necessarily unusual, ongoing insider sales can temper enthusiasm if they continue. QuiverQuant Summary
• Negative Sentiment: Repurchase program has no set timeframe and could be viewed as a sign management prefers buybacks over growth investments; execution timing will determine actual shareholder value. Seeking Alpha

Wall Street Analyst Weigh In

PFS has been the subject of several research reports. DA Davidson downgraded shares of Provident Financial Services from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 20th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Provident Financial Services in a report on Thursday, January 22nd. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $22.70.

Insider Buying and Selling

In other Provident Financial Services news, CEO George Lista sold 8,262 shares of the firm’s stock in a transaction on Thursday, November 6th. The stock was sold at an average price of $18.35, for a total value of $151,607.70. Following the sale, the chief executive officer directly owned 108,656 shares in the company, valued at $1,993,837.60. This trade represents a 7.07% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 3.10% of the stock is owned by company insiders.

Institutional Investors Weigh In On Provident Financial Services

Hedge funds and other institutional investors have recently made changes to their positions in the business. Wellington Management Group LLP increased its stake in Provident Financial Services by 10.0% in the third quarter. Wellington Management Group LLP now owns 6,359,098 shares of the savings and loans company’s stock valued at $122,603,000 after purchasing an additional 576,673 shares during the last quarter. Geode Capital Management LLC boosted its holdings in shares of Provident Financial Services by 1.4% in the 2nd quarter. Geode Capital Management LLC now owns 3,069,463 shares of the savings and loans company’s stock valued at $53,815,000 after buying an additional 41,758 shares in the last quarter. American Century Companies Inc. grew its position in shares of Provident Financial Services by 40.4% in the 3rd quarter. American Century Companies Inc. now owns 2,308,774 shares of the savings and loans company’s stock valued at $44,513,000 after buying an additional 664,021 shares during the last quarter. Systematic Financial Management LP grew its position in shares of Provident Financial Services by 0.6% in the 2nd quarter. Systematic Financial Management LP now owns 1,978,498 shares of the savings and loans company’s stock valued at $34,683,000 after buying an additional 11,647 shares during the last quarter. Finally, Bank of New York Mellon Corp raised its stake in Provident Financial Services by 1.7% during the 2nd quarter. Bank of New York Mellon Corp now owns 1,402,478 shares of the savings and loans company’s stock worth $24,585,000 after acquiring an additional 22,986 shares in the last quarter. Institutional investors and hedge funds own 71.97% of the company’s stock.

Provident Financial Services Trading Up 4.8%

The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 0.96. The stock has a market capitalization of $2.85 billion, a PE ratio of 11.14 and a beta of 0.85. The business’s 50-day moving average is $20.08 and its two-hundred day moving average is $19.38.

Provident Financial Services Company Profile

Provident Financial Services, Inc is the bank holding company for Provident Bank, a regional commercial bank headquartered in Jersey City, New Jersey. The company operates a network of full-service branches across New Jersey, the New York metropolitan area and eastern Pennsylvania, offering a range of personal and business banking solutions.

Its core products and services include checking and savings accounts, consumer and residential mortgage loans, commercial real estate financing and small-business lending.