FS Bancorp stock edges lower as short interest falls sharply

FS Bancorp stock (ISIN US30259G1076) traded at USD 44.17 on Nasdaq on September 17, 2026, down USD 0.30 from the prior close, with 4,145 shares changing hands according to MarketBeat on September 17, 2026.

Short interest declines ahead of recent quarter

According to MarketBeat on September 17, 2026, short interest in FS Bancorp fell to 69,700 shares as of August 31, 2026, down 28.0 percent from 96,800 shares on August 15, 2026.

MarketBeat reports that based on this short position and FS Bancorp's average daily trading volume, the days-to-cover ratio stood at 4.5 days at the end of August 2026, indicating that bearish bets are relatively modest compared with overall liquidity.

Earnings and valuation context for FS Bancorp stock

Per the same overview from MarketBeat on September 17, 2026, FS Bancorp generated revenue of USD 30.6 million in the second quarter of 2026, which compares with USD 28.9 million in the second quarter of 2025, an increase of roughly 5.9 percent year over year.

According to MarketBeat, FS Bancorp reported net income of USD 8.5 million for the second quarter of 2026, up from USD 7.2 million a year earlier, which corresponds to growth of about 18.1 percent and underscores solid profitability in the current rate environment.

The same data set from MarketBeat indicates that FS Bancorp earned USD 1.30 per diluted share in the second quarter of 2026, compared with USD 1.08 per diluted share in the second quarter of 2025, an increase of 20.4 percent that reflects both higher revenue and disciplined cost control.

For investors, one key metric is the bank's return on equity: according to MarketBeat, FS Bancorp's annualized return on equity in the second quarter of 2026 stood at 12.4 percent, compared with 11.2 percent a year earlier, demonstrating improving efficiency in deploying shareholder capital.

In addition, MarketBeat notes that FS Bancorp's net interest margin for the second quarter of 2026 was 3.75 percent, slightly above the 3.68 percent recorded in the second quarter of 2025, a 0.07 percentage point improvement that suggests the bank has been able to manage funding costs despite higher-for-longer policy rates.

Dividend income also plays a role in the investment case: according to MarketBeat, FS Bancorp declared a quarterly dividend of USD 0.30 per share for the second quarter of 2026, up from USD 0.27 per share in the prior-year quarter, which equates to dividend growth of 11.1 percent year over year.

Based on the latest figures compiled by MarketBeat, FS Bancorp's payout ratio in the second quarter of 2026 was approximately 23.1 percent of earnings, suggesting that the bank retains a large portion of profits to support growth and capital buffers while still offering shareholders a growing cash return.

The valuation backdrop is moderate: according to MarketBeat, FS Bancorp trades at a price-to-earnings ratio of 10.5 based on trailing twelve-month earnings, compared with an estimated regional-bank peer average of around 11.8, implying that the stock is valued at a modest discount to its sector.

Analyst view and trading metrics

According to data compiled by MarketBeat on September 17, 2026, FS Bancorp currently carries a consensus rating of Hold from three analysts, with a consensus price target of USD 45.00, only 1.9 percent above the recent price of USD 44.17.

Per the same source, one analyst rates FS Bancorp at Buy with a price target of USD 48.00, while two rate it at Hold with price targets of USD 44.00 and USD 43.00 respectively, indicating that expectations for significant upside are restrained and closely clustered around the prevailing trading range.

In terms of market performance, MarketBeat reports that FS Bancorp's 52-week high is USD 45.20 and its 52-week low is USD 32.10, so the September 17, 2026 price of USD 44.17 sits 2.3 percent below the high and 37.6 percent above the low.

According to the same data, FS Bancorp's market capitalization stands at approximately USD 353.0 million as of September 17, 2026, based on the prevailing share price and shares outstanding, positioning the company firmly in the small-cap segment of the US banking sector.

For liquidity-oriented investors, daily trading volumes matter: MarketBeat notes that FS Bancorp's average daily volume over recent months is 15,620 shares, so the 4,145 shares traded on September 17, 2026 represented about 26.6 percent of typical turnover.

This combination of a modest valuation, improving earnings and declining short interest suggests that FS Bancorp stock currently reflects cautious but stable expectations, with investors balancing higher-for-longer interest rates against solid credit quality and disciplined balance-sheet management.

FS Bancorp stock price snapshot

FS Bancorp stock closed at USD 44.17 on Nasdaq on September 17, 2026, down 0.7 percent from the prior close of USD 44.47, with the shares trading within a 52-week range of USD 32.10 to USD 45.20 and a market capitalization of about USD 353.0 million as of that date.

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