Primis Financial (FRST) Moves 6.2% Higher: Will This Strength Last?

Primis Financial (FRST) shares soared 6.2% in the last trading session to close at $13.91. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 18.8% gain over the past four weeks.

Primis Financial retained its rally for the second straight day, driven by its strength in combining efficient community banking with digital scalability. The bank has successfully expanded its presence across Virginia and Maryland, maintaining high branch deposit averages, and has grown its digital deposit base. The experienced management team has bolstered operational capabilities through strategic hiring, infrastructure investments and technology innovations like V1BE, the industry’s first on-demand banking delivery app.

A key competitive strength lies in FRST’s diversified revenue streams through specialized business lines. The Panacea Financial Division, serving healthcare professionals nationwide, and the Primis Mortgage Company, have driven above-average risk-adjusted returns. Additionally, the bank’s SBA Preferred Lender status enables rapid nationwide loan decisions, enhancing its appeal to small businesses. Primis Financial’s focus on underwriting discipline, asset quality and its scalable infrastructure built for larger asset bases position it for sustained, prudent growth.

This holding company for Sonabank is expected to post quarterly earnings of $0.29 per share in its upcoming report, which represents a year-over-year change of +144.6%. Revenues are expected to be $36.3 million, down 7.6% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Primis Financial, the consensus EPS estimate for the quarter has been revised 9.4% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on FRST going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Primis Financial belongs to the Zacks Financial - Miscellaneous Services industry. Another stock from the same industry, Acadian Asset Management (AAMI), closed the last trading session 1.1% lower at $47. Over the past month, AAMI has returned 8.9%.

Acadian Asset Management's consensus EPS estimate for the upcoming report has changed -28.8% over the past month to $1.31. Compared to the company's year-ago EPS, this represents a change of +0.8%. Acadian Asset Management currently boasts a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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