SFNC Simmons First National Corporation

Mendon Capital Advisors has acquired a significant stake in Simmons First National (SFNC), indicating a vote of confidence in the U.S. regional bank. Despite recent weak returns, SFNC is trading below analyst targets and intrinsic value estimates, suggesting it might be undervalued. The article explores whether this institutional interest signals a mispriced turnaround opportunity.

Simmons First National (SFNC) shares recently rose after New York Fed President John Williams signaled a potential rate cut, increasing optimism for regional banks. The company, which saw a tough past year with a 24% decline in total shareholder return, is now showing tentative signs of recovery with this hawkish shift and a modest dividend hike. Despite remaining undervalued according to analysts who project strong growth drivers from investments in technology and automation, ongoing competition and real estate unpredictability pose risks.

Baird upgraded Simmons First National (NASDAQ:SFNC) from Neutral to Outperform with a $22.00 price target, citing improved profitability and balance sheet health. The upgrade follows a $327 million secondary offering that led to a $626 million loss from securities repositioning, which is expected to significantly improve net interest margin. The bank, which has maintained dividends for 52 years, is now poised for balance sheet growth and business investment in 2026 and 2027.

Simmons First National Corporation (NASDAQ: SFNC) has declared a quarterly cash dividend of $0.2125 per share, payable on January 2, 2026, to shareholders of record as of December 15, 2025. This marks a 1% increase over the previous year's dividend and represents the company's 14th consecutive dividend increase, maintaining a 116-year history of uninterrupted dividend payments. The annualized dividend for 2025 will be $0.85 per share, though future dividends are subject to board approval and other risks.

Baird upgraded Simmons First National (NASDAQ:SFNC) from Neutral to Outperform with a price target of $22.00, citing improved profitability and balance sheet health. The upgrade follows a recent secondary offering and securities repositioning aimed at enhancing net interest margin. Despite recent challenges, the bank has a strong dividend history and potential for growth in 2026 and 2027.

Simmons First National Corporation (NASDAQ:SFNC) has declared a dividend of $0.2125 per share, resulting in a 4.8% dividend yield. While the company has a long history of dividend payments, its last earnings report showed that the dividend distribution exceeded net earnings, raising concerns about sustainability. Analysts project higher EPS and a more comfortable payout ratio in the next three years, but past earnings per share have declined, and the company has issued new shares.