Investar Holding (ISTR) AI Stock Analysis

• Market Cap: $211.45M
• Dividend Yield: 2%
• Average Volume (3M): 37.74K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.91
• Revenue Growth: 3.25%
• EPS Growth: 47.03%
• Country: US
• Employees: 329
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.47
• Shares Outstanding: 9,825,883
• 10 Day Avg. Volume: 35,828
• 30 Day Avg. Volume: 37,740
• PEG Ratio: 0.49
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 1.38
• P/FCF Ratio: 13.98
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: 1.77
• Enterprise Value/Gross Profit: 3.01
• Enterprise Value/Ebitda: 9.42
• 1Y Price Target: $27.00
• Price Target Upside: 25.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: $23.00 ▲(6.88% Upside)

Investar Holding's overall stock score is primarily influenced by its stable financial performance and attractive valuation. However, the bearish technical indicators and concerns over revenue growth and cash flow conversion weigh on the score. The absence of recent earnings call data and corporate events means these factors do not impact the evaluation.

Investar Holding Business Overview & Revenue Model

Company Description

Investar Holding Corporation (ISTR) is a financial services company based in the United States that primarily operates through its wholly-owned subsidiary, Investar Bank. The company is engaged in offering a variety of banking products and services, including commercial and consumer loans, deposit accounts, and wealth management services. Its focus is on serving individuals, small businesses, and commercial clients in its target markets, mainly in Louisiana and Mississippi.

How the Company Makes Money

Investar Holding generates revenue primarily through net interest income, which is earned from the difference between the interest income generated from loans and the interest expense paid on deposits. The company also earns non-interest income from various sources, including service fees from deposit accounts, mortgage origination fees, and investment management fees. Additionally, Investar may engage in strategic partnerships with other financial institutions or service providers to enhance its product offerings and expand its customer base, contributing further to its earnings.

Investar Holding Financial Statement Overview

Summary

Investar Holding shows stable financial performance with revenue growth and effective cost management. However, decreasing operating cash flow and fluctuating investing activities warrant attention.

Income Statement

Investar Holding shows a consistent growth trajectory in its revenue with a 10% increase from 2023 to 2024. Gross and net profit margins remain stable, indicating effective cost management. However, a decline in EBIT margin from 2022 suggests increased operating costs, which could be a concern if it continues.

Balance Sheet

The company maintains a healthy equity ratio of approximately 9% in 2025 TTM, showcasing a solid capital structure. Despite a relatively high debt-to-equity ratio of 0.38, the company has been reducing its debt over the years, which strengthens its financial stability. Return on equity remains robust, driven by consistent profitability.

Cash Flow

Cash flow from operations remains positive, albeit with a declining trend which could pressure liquidity if not addressed. Free cash flow to net income ratio is strong, reflecting efficient cash generation relative to profits. However, volatility in cash flows from investing and financing activities signals potential instability in future cash reserves.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	154.39M	156.52M	141.06M	123.18M	107.99M	105.93M
Gross Profit	90.65M	85.89M	84.38M	105.47M	73.38M	74.51M
EBITDA	28.98M	27.50M	24.21M	48.78M	14.90M	21.91M
Net Income	22.27M	20.25M	16.68M	35.71M	8.00M	13.89M
Balance Sheet
Total Assets	2.75B	2.72B	2.82B	2.75B	2.51B	2.32B
Cash, Cash Equivalents and Short-Term Investments	410.93M	34.12M	390.20M	445.23M	452.05M	303.78M
Total Debt	106.52M	101.02M	85.08M	439.74M	135.66M	175.00M
Total Liabilities	2.49B	2.48B	2.59B	2.54B	2.27B	2.08B
Stockholders Equity	255.93M	241.30M	226.77M	215.78M	242.60M	243.28M
Cash Flow
Free Cash Flow	12.26M	15.42M	25.18M	41.69M	30.16M	10.16M
Operating Cash Flow	12.92M	15.93M	26.25M	42.75M	33.48M	17.75M
Investing Cash Flow	32.56M	90.06M	-73.49M	-350.99M	53.40M	-148.14M
Financing Cash Flow	-59.92M	-110.08M	38.99M	251.46M	-25.21M	121.07M

Investar Holding Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ISTR, the sentiment is Negative. The current price of 21.52 is below the 20-day moving average (MA) of 22.77, below the 50-day MA of 22.71, and above the 200-day MA of 19.92, indicating a neutral trend. The MACD of -0.20 indicates Positive momentum. The RSI at 35.57 is Neutral, neither overbought nor oversold. The STOCH value of 22.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ISTR.

Investar Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OVLY	72 Outperform	$217.18M	8.85	13.54%	2.32%	5.11%	-2.77%
FUNC	69 Neutral	$220.95M	9.30	13.37%	2.69%	11.42%	63.24%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PVBC	64 Neutral	$221.41M	19.86	4.59%	―	-3.01%	48.26%
ISTR	63 Neutral	$211.45M	9.62	9.16%	2.00%	3.25%	47.03%
FVCB	63 Neutral	$217.52M	10.87	8.69%	0.50%	17.89%	351.71%
NWFL	54 Neutral	$225.70M	102.61	1.56%	5.09%	-4.78%	-85.40%

Investar Holding Corporate Events

Investar Holding Announces Merger with Wichita Falls Bancshares

On July 1, 2025, Investar Holding Corporation announced its agreement to merge with Wichita Falls Bancshares, Inc., the holding company for First National Bank in Wichita Falls, Texas. This merger, valued at approximately $83.6 million, is part of Investar’s strategy to expand its geographic footprint in Texas. The merger will result in a combined bank with over $4 billion in assets, enhancing services and lending capacity. Additionally, Investar announced a private placement of $32.5 million in Series A Non-Cumulative Perpetual Convertible Preferred Stock to support the acquisition and for general corporate purposes.

The most recent analyst rating on (ISTR) stock is a Hold with a $21.00 price target. To see the full list of analyst forecasts on Investar Holding stock, see the ISTR Stock Forecast page.

Investar Holding Shareholders Approve Key Proposals

At the 2025 Annual Meeting of Shareholders held on May 21, 2025, Investar Holding Corporation presented three proposals for a vote. The shareholders elected 11 directors to serve a one-year term, ratified the appointment of Horne LLP as the independent registered public accounting firm for the 2025 fiscal year, and approved the compensation of the company’s named executive officers.

The most recent analyst rating on (ISTR) stock is a Hold with a $21.00 price target. To see the full list of analyst forecasts on Investar Holding stock, see the ISTR Stock Forecast page.