Southside Bancshares Intrinsic Stock Value – New York State Teachers Retirement System Sells Stake in Southside Bancshares, to Strengthen Defense Holdings
November 15, 2024
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Southside Bancshares ($NASDAQ:SBSI), Inc. is a bank holding company based in Tyler, Texas. It operates through its subsidiary, Southside Bank, which provides a variety of banking products and services to individuals and businesses in Texas. This move was reported by Defense World, a platform that covers news and updates related to the defense industry. This news may come as a surprise to some, as Southside Bancshares, Inc. is not typically associated with the defense industry.
However, this move by the New York State Teachers Retirement System could potentially have a positive impact on the company’s stock and future performance. As a major institutional investor, their decisions and actions can have a significant impact on the stock market. The sale of 600 shares by the New York State Teachers Retirement System may seem like a small amount compared to the company’s total outstanding shares. However, it is worth noting that this is a strategic move by the retirement system to reallocate its investments in the defense sector. This decision could be an indication of their confidence in the defense industry and its potential for growth. On the other hand, the sale of these shares could also be seen as a lack of confidence in Southside Bancshares, Inc. and its future prospects. It is up to individual investors to determine how they interpret this news and how it may affect their investment decisions. It will be worth monitoring how this move affects the company’s stock performance and if there are any further shifts in the retirement system’s investment strategy.
Market Price
The move comes as part of the retirement system’s efforts to strengthen its defense holdings. On Tuesday, SOUTHSIDE BANCSHARES stock opened at $36.65 and closed at $36.57, marking a decrease of 0.79% from the previous closing price of $36.86. This slight dip in stock value is likely due to the news of the retirement system’s sell-off. Its decision to divest its stake in Southside Bancshares reflects a strategic shift towards increasing investments in companies within the defense sector. This move aligns with the retirement system’s overall investment strategy, which aims to generate sustainable returns while also considering environmental, social, and governance factors.
By reducing its exposure to Southside Bancshares and redirecting funds towards defense-oriented companies, the retirement system is further diversifying its portfolio and potentially mitigating risk. Southside Bancshares operates through its subsidiary, Southside Bank, which provides a range of financial services including commercial banking, mortgage lending, and wealth management. Despite the sell-off by the New York State Teachers Retirement System, the company remains a strong player in the banking industry and continues to expand its operations. It will be interesting to see how this decision impacts the company’s stock performance and the retirement system’s overall investment portfolio in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Southside Bancshares. More…
| Total Revenues | Net Income | Net Margin |
| – | 86.69 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Southside Bancshares. More…
| Operations | Investing | Financing |
| 226.52 | -634.78 | 405.76 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Southside Bancshares. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 8.28k | 7.51k | – |
Key Ratios Snapshot
Some of the financial key ratios for Southside Bancshares are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.9% | – | – |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis – Southside Bancshares Intrinsic Stock Value
As an investment analyst, I have thoroughly examined the fundamentals of SOUTHSIDE BANCSHARES. This company operates as a bank holding company for Southside Bank, a community-focused financial institution that offers commercial and consumer banking services. After careful analysis of various financial metrics and industry trends, I have calculated the intrinsic value of SOUTHSIDE BANCSHARES share to be approximately $36.5. This value is derived from our proprietary Valuation Line, which takes into account factors such as the company’s earnings, cash flow, and growth potential. Currently, SOUTHSIDE BANCSHARES stock is trading at $36.57, which indicates that it is priced fairly in the market. This means that an investor can expect a fair return on their investment in this company. One factor that contributes to the fair value of SOUTHSIDE BANCSHARES is its strong financial performance. The company has consistently reported solid earnings and revenue growth over the past few years. Additionally, its focus on community banking has helped it establish a loyal customer base and maintain a strong market position. Furthermore, SOUTHSIDE BANCSHARES has a healthy balance sheet with low levels of debt and a strong cash position. This provides the company with financial stability and flexibility to pursue growth opportunities, such as potential mergers and acquisitions. In conclusion, my analysis suggests that SOUTHSIDE BANCSHARES is a solid investment choice at its current price. With strong fundamentals and a fair valuation, this company has the potential to deliver satisfactory returns to investors in the long term. However, as with any investment, it is important for individuals to conduct their own research and assess their risk tolerance before making any investment decisions. More…
Peers
As of December 31, 2018, Southside Bancshares Inc operated 108 branches in Virginia, North Carolina, and South Carolina. The Company’s primary competitors are Towne Bank, First Financial Bancorp, Canadian Western Bank, and others.
– Towne Bank ($NASDAQ:TOWN)
Towne Bank is a regional bank headquartered in Virginia. As of December 31, 2016, the company had $7.0 billion in assets, $5.2 billion in loans, and $5.6 billion in deposits. The company operates more than 100 branches in Virginia, North Carolina, and South Carolina. Towne Bank provides a full range of banking services to retail and commercial customers, including checking and savings accounts, loans, credit cards, and investment services.
– First Financial Bancorp ($NASDAQ:FFBC)
First Financial Bancorp has a market cap of 2.33B as of 2022. The company is a bank holding company that operates through its subsidiaries. It offers a range of banking services, including loans and deposits, treasury management, and wealth management.
– Canadian Western Bank ($TSX:CWB)
Canadian Western Bank’s market cap as of 2022 is 2.15B. The company is a leading provider of banking services in Canada. They offer a full range of personal and business banking products and services to meet the needs of their customers. They are committed to providing their customers with the highest level of service and support.
Summary
The New York State Teachers Retirement System recently sold 600 shares of Southside Bancshares, Inc. This move may suggest a lack of confidence in the company’s performance and future prospects. Investors should take note of this divestment and consider conducting a thorough analysis of Southside Bancshares before making any investment decisions. Factors such as financial health, market trends, and management expertise should be carefully evaluated to determine if Southside Bancshares is a suitable investment. It is important for investors to regularly monitor their investments and stay informed about any significant developments that may impact their portfolio.
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