Sierra Bancorp (BSRR) Margin Improvements Complicate Value Story Amid Sluggish Revenue Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 27 2025
0mins
Source: Yahoo Finance
Earnings Performance: Sierra Bancorp (BSRR) reported a 13.8% increase in EPS over the past year, significantly surpassing its five-year average growth of 0.1%, with a net profit margin improvement to 28%.
Valuation and Market Position: The company's shares are currently trading at $27.61, well below the estimated fair value of $52.41, and its price-to-earnings ratio of 9.1x is lower than both peer and industry averages, presenting a potential value opportunity for investors.
Growth Challenges: Despite strong margin gains, Sierra Bancorp's revenue growth is forecasted at only 5.7% per year, trailing the broader US market's expected 10.1%, which may limit its near-term upside unless operational efficiencies are maintained.
Investment Outlook: Analysts recognize the company's high-quality earnings and disciplined cost controls, but the slower projected growth compared to larger banks suggests that Sierra Bancorp may lag behind in the dynamic market landscape.
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Analyst Views on BSRR
Wall Street analysts forecast BSRR stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for BSRR is 34.17 USD with a low forecast of 33.00 USD and a high forecast of 36.00 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.
4 Analyst Rating
1 Buy
3 Hold
0 Sell
Hold
Current: 34.550
Low
33.00
Averages
34.17
High
36.00
Current: 34.550
Low
33.00
Averages
34.17
High
36.00
About BSRR
Sierra Bancorp is a bank holding company for Bank of the Sierra (the Bank). The Bank offers a range of retail and commercial banking services via branch offices located throughout California’s South San Joaquin Valley, the Central Coast, Ventura County, and neighboring communities. The Bank offers a range of deposit products and services for individuals and businesses, including checking accounts, savings accounts, money market demand accounts, time deposits, retirement accounts, and sweep accounts. It provides multiple account access options to meet both new and existing customer needs, such as an online account-opening platform; online banking with bill-pay and mobile banking capabilities, including mobile check deposit, and online lending solutions for consumers and small businesses; a customer service center that is accessible by toll-free telephone during business hours, and an automated telephone banking system that is generally accessible 24 hours a day, seven days a week.
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.
Sierra Bancorp Increases Quarterly Dividend by 4%
- Dividend Increase: Sierra Bancorp has declared a quarterly dividend of $0.26 per share, up from $0.25, reflecting the company's commitment to shareholder returns based on stable earnings, which enhances investor confidence.
- Yield Performance: Following this dividend adjustment, Sierra Bancorp's forward yield stands at 3.01%, providing a relatively attractive return in the current market environment, potentially drawing in more investors seeking stable income.
- Payment Schedule: The new dividend will be payable on February 17, with a record date of February 9 and an ex-dividend date also on February 9, ensuring shareholders receive their returns promptly and strengthening trust between the company and its investors.
- Market Reaction: With the dividend increase, market interest in Sierra Bancorp may rise, particularly among investors looking for stable cash flows, further enhancing the company's competitive position in the market.
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Sierra Bancorp Declares Quarterly Cash Dividend
- Dividend Increase: Sierra Bancorp's Board of Directors declared a quarterly cash dividend of $0.26 per share, reflecting a $0.01 increase or 4% from the previous quarter, indicating strong financial performance and boosting investor confidence.
- Consistent Dividend Record: This dividend marks the company's 108th consecutive quarterly cash dividend since 1987, demonstrating a long-term commitment to shareholders and reinforcing its positive reputation among investors.
- Banking Strength Recognition: In 2025, Bank of the Sierra was recognized as one of the strongest and top-performing community banks in the nation, receiving a 5-star rating from Bauer Financial, which underscores its solid position in a competitive market.
- Broad Business Coverage: Operating in the South San Joaquin Valley, Bank of the Sierra offers a wide range of retail and commercial banking services through multiple branches and online services, enhancing its market penetration and customer base.
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