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SBSI: Leadership Transition And Buybacks Will Support Future Stability

Share Buybacks And Leadership Transition Will Drive Long-Term Shareholder Rewards

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SBSI
AnalystConsensusTarget
Not Invested
Published 13 Feb 2025

Update shared on 11 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
-6.8%
7D
4.5%

Analysts have modestly fine tuned their price target for Southside Bancshares to reflect essentially unchanged fair value at approximately $32.00 per share. This view is supported by a slightly lower discount rate and a marginally softer projected future price to earnings multiple, which together point to a stable, fairly valued outlook.

What's in the News

  • CEO Lee R. Gibson plans to retire effective December 31, 2025. Current President Keith Donahoe is set to assume the role of Chief Executive Officer and President while remaining on the board, signaling a planned leadership transition with continuity of strategic oversight (Key Developments).
  • Southside Bancshares increased its equity buyback authorization by 1,000,000 shares on October 16, 2025, doubling the total repurchase capacity to 2,000,000 shares and underscoring ongoing capital return to shareholders (Key Developments).
  • Between July 1, 2025 and October 24, 2025, the company repurchased 26,692 shares for approximately $0.81 million, completing a broader program totaling 868,061 shares and $24.69 million under the buyback announced July 25, 2023 (Key Developments).
  • Net charge offs rose to $0.8 million for the quarter ended September 30, 2025, compared with $0.4 million a year earlier and $0.9 million in the prior quarter, indicating modest but manageable credit cost pressures (Key Developments).

Valuation Changes

  • Fair Value: Unchanged at approximately $32.00 per share, indicating a stable assessment of intrinsic value.
  • Discount Rate: Fallen slightly from about 7.18 percent to roughly 7.15 percent, implying a marginally lower perceived risk or required return.
  • Revenue Growth: Effectively unchanged at around 12.43 percent, suggesting no material shift in long term top line expectations.
  • Net Profit Margin: Essentially flat at roughly 33.34 percent, indicating stable profitability assumptions.
  • Future P/E: Eased slightly from about 10.20x to roughly 10.19x, pointing to a marginally softer valuation multiple applied to future earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.