Investar (ISTR) Emerges as a Leading Dividend Stock: Is It Time to Invest?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 18 2025
0mins
Source: NASDAQ.COM
Investment Focus: Income investors prioritize generating consistent cash flow from investments, particularly through dividends, which are distributions of a company's earnings to shareholders.
Investar Overview: Investar Holding Corporation (ISTR) has a dividend yield of 2%, with an annualized dividend of $0.44, reflecting a 7.3% increase from last year and a payout ratio of 20%.
Earnings Growth Potential: The Zacks Consensus Estimate predicts a 2.12% year-over-year earnings growth for ISTR in 2025, indicating solid financial performance.
AI Investment Trends: The article discusses the potential for significant wealth creation in the next phase of AI development, highlighting the importance of early investment in emerging companies while cautioning that the rapid growth of current AI stocks may stabilize soon.
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Analyst Views on ISTR
Wall Street analysts forecast ISTR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ISTR is 29.00 USD with a low forecast of 29.00 USD and a high forecast of 29.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 28.210
Low
29.00
Averages
29.00
High
29.00
Current: 28.210
Low
29.00
Averages
29.00
High
29.00
About ISTR
Investar Holding Corporation is a financial holding company that conducts its operations primarily through its subsidiary, Investar Bank, National Association (the Bank). The Company offers a range of commercial and retail lending products throughout its market areas, including business loans to small to medium-sized businesses as well as loans to individuals. Its business lending products include owner-occupied commercial real estate loans, construction loans and commercial and industrial loans, such as term loans, equipment financing and lines of credit, while its loans to individuals include first and second mortgage loans, installment loans, and lines of credit. It offers a base of deposit products and services to individual and business clients, including savings, checking, and money market accounts, as well as a variety of certificates of deposit and individual retirement accounts. It also offers debit cards, Internet banking, direct deposit of payroll and social security checks.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Investar Reports Q4 2025 Earnings: $0.58 EPS and $23.47M Revenue
- Earnings Performance: Investar achieved a non-GAAP EPS of $0.58 and revenue of $23.47 million in Q4 2025, reflecting the company's stable profitability in the market, which is expected to boost investor confidence.
- Cost of Funds Decline: As of December 31, 2025, the overall cost of funds decreased by 13 basis points to 2.98%, with deposit costs also falling to 2.91%, which will help enhance the company's net interest margin and improve profitability.
- Loan Growth: Total loans increased by $25.5 million, or 1.2%, reaching $2.18 billion, with the business lending portfolio growing by $31.8 million, indicating the company's active expansion in the commercial lending market, which is expected to drive future revenue growth.
- Stock Buyback Program: Investar repurchased 28,470 shares of common stock at an average price of $23.94 per share during Q4 2025, demonstrating the company's confidence in its stock value while creating additional value for shareholders.
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Investar Completes Acquisition of Wichita Falls Bancshares for $112.9M
- Acquisition Completed: Investar Holding has finalized its acquisition of Wichita Falls Bancshares, effective January 1, marking a significant step in the company's business expansion strategy.
- Transaction Details: The acquisition involves $7.2 million in cash and 3,955,334 shares of common stock, resulting in an aggregate transaction value of approximately $112.9 million, based on the closing stock price of $26.72 per share on December 31, indicating the company's commitment to the target asset.
- Board Changes: Following the acquisition, former directors David Flack and James Dunkerley from Wichita Falls and FNB were appointed to the Board of Directors of the Company and the Bank, enhancing the governance structure and industry expertise.
- Strategic Implications: This acquisition not only increases Investar's market share but also strengthens its competitive position in the financial services industry by integrating resources and expertise, which is expected to drive future growth.
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