Exploring Primis Financial Corp. (FRST) Investor Profile: Who’s Buying and Why?

You're looking at Primis Financial Corp. (FRST) and asking the right question: why are the big players circling this regional bank? The direct takeaway is that institutional investors, who already own nearly 79% of the stock, are buying into a clear profitability turnaround, and you need to understand which growth engines they value most. For the nine months ending September 30, 2025, the company delivered a net income of $32 million, or $1.29 per diluted share, a significant jump that's catching the eye of major holders like BlackRock, Inc.. Honestly, that kind of performance in the current banking climate is a signal you can't ignore, especially when their core net interest margin (NIM) hit 3.15% in the third quarter. So, is the recent surge in institutional buying-like the $4.11 million position taken by CSM Advisors LLC-just smart money chasing a regional bank turnaround, or is it a deeper bet on the explosive 411% year-to-date growth in their mortgage warehouse balances? Let's break down who's buying and the specific financial metrics that are driving their conviction.

Who Invests in Primis Financial Corp. (FRST) and Why?

You're looking at Primis Financial Corp. (FRST) and trying to figure out who is buying this regional bank stock and what their endgame is. The direct takeaway is that Primis is overwhelmingly owned by large financial institutions who are betting on a value play tied to its aggressive digital growth strategy, specifically in specialized lending, plus a solid dividend income stream.

As of late 2025, the investor base is heavily skewed toward professional money. Institutional investors-think mutual funds, pension funds, and asset managers like Blackrock Inc.-hold a dominant 79.29% of the outstanding shares. Insiders, which includes executives and directors, own a significant 16.06%, showing strong alignment with management. This leaves only about 4.65% for retail investors like you, the individual shareholder. This isn't a stock driven by meme-like retail trading; it's a professional's bet.

• Institutions drive the stock.

Key Investor Types and Their Stakes

When institutions hold nearly four-fifths of the company, you need to know who they are and what they're doing. The presence of firms like Blackrock Inc., which holds a 7.87% stake, and Banc Funds Co LLC, a bank-focused private equity firm, signals a serious, long-term view on the regional banking sector and Primis Financial Corp.'s specific turnaround story. They are not just passive holders.

Here's the quick math on the major players. When a firm like Blackrock Inc. owns nearly 2 million shares, their decision to buy or sell moves the needle. This institutional concentration gives them a strong voice in the company's strategic direction. The insider ownership of 16.06% is also a key signal; management is literally putting their money where their mouth is, which is defintely a good sign for long-term holders.

Investment Motivations: Growth and Income

Investors are drawn to Primis Financial Corp. for two primary reasons: a compelling growth story in specialized lending and a consistent dividend yield. The bank is strategically focused on high-growth, technology-driven segments, which is a smart move for a regional bank in a competitive market. You can read more about their strategy at Primis Financial Corp. (FRST): History, Ownership, Mission, How It Works & Makes Money.

The growth narrative is built on two pillars. First, the Panacea Financial segment, which focuses on loans to doctors and dentists, saw its loan balances grow by a substantial 40% year-over-year, reaching $548 million in the third quarter of 2025. Second, the mortgage warehouse lending segment saw explosive growth, up 411% from the end of 2024 to $327 million by Q3 2025. This focus is translating into results: year-to-date net income through September 30, 2025, hit $32 million, or $1.29 diluted EPS, a significant jump from the prior year.

Also, the dividend is a major draw for income-focused investors. Primis Financial Corp. pays an annual dividend of $0.40 per share, translating to a current dividend yield of around 3.70%. For a regional bank, that yield is competitive, providing a tangible return while institutions wait for the strategic growth to fully materialize and drive the stock price higher.

Typical Investment Strategies in Play

The dominant strategy here is Value Investing with a growth kicker. The stock traded near a 52-week low of $7.99 earlier in 2025, which attracts value-oriented funds looking to buy a profitable bank at a discount to its intrinsic value. They see the recent profitability improvement-Q3 2025 net income was $7 million-as proof that the turnaround is working.

Another common strategy is Long-Term Holding for Income and Capital Appreciation. These investors are willing to hold the stock for three to five years, collecting the quarterly dividend while expecting the company's focus on margin expansion-targeting a core net interest margin in the mid-320s-to drive capital appreciation. Short-term trading is less common given the lower trading volume compared to money-center banks, but some hedge funds may engage in event-driven strategies around earnings reports, especially since the company has shown a tendency to beat consensus estimates, as it did in Q2 2025 with an EPS of $0.34 versus a $0.21 forecast.

• Buy for value, hold for income.

What this estimate hides is the inherent risk of a regional bank in a fluctuating interest rate environment, but the strong institutional backing suggests confidence in management's ability to navigate those waters. Your next step should be to compare the 3.70% dividend yield to the risk-free rate and your required rate of return to see if the income justifies the small-cap bank risk.

Institutional Ownership and Major Shareholders of Primis Financial Corp. (FRST)

If you are looking at Primis Financial Corp. (FRST), the first thing to understand is that institutional money-the big players like mutual funds and hedge funds-drives the stock. These large investors own an overwhelming majority of the company, with institutional ownership recently reported as high as 88.49% of the float. That means their actions, not yours or mine, dictate the stock's major movements.

The sheer concentration of shares in institutional hands, which totals over 23.3 million shares, reflects a strong, albeit cautious, confidence in the regional bank's strategy. This isn't just passive index investing; it's a collection of strategic bets on Primis's ability to execute its growth plan, even with the current banking sector headwinds.

Top Institutional Investors and Their Stakes

The investor profile for Primis Financial Corp. is dominated by a mix of passive index funds and specialist financial sector investors. As of the most recent filings (Q3/Q4 2025 data), the largest institutional holders are making significant, multi-million dollar commitments to the stock. Here's a quick look at the top institutional owners and their approximate holdings:

What this table hides is the nature of the investment. Firms like BlackRock and Vanguard are often passive, holding the stock as part of a broader index fund (like the Russell 2000), while others, such as Mendon Capital, are specialist hedge funds that are making an active, concentrated bet on the regional banking sector. You need to know which is which to defintely gauge sentiment.

Recent Shifts: Who's Buying and Who's Selling?

Institutional buying and selling activity in the third and fourth quarters of 2025 shows a clear divergence in strategy. While the total institutional ownership remains high, some large funds are aggressively increasing their positions, while others are trimming their exposure.

On the buying side, we saw notable accumulation. For example, Two Sigma Investments LP grew its position by a substantial 48.3%, and a new institutional player, CSM Advisors LLC, acquired a position of 378,420 shares, valued at about $4.11 million, in Q2 2025. This inflow suggests that some quantitative and advisory funds see an inflection point in the stock.

But it's not all one-way traffic. Other funds are taking profits or reducing risk. Kennedy Capital Management LLC, for instance, dramatically cut its stake by over 70%, a move that signals a significant change in their outlook. This mixed activity means the stock is currently in a tug-of-war between value-focused buyers and risk-averse sellers.

The 'Why': Institutional Drivers of Primis Financial Corp.'s Stock

The primary reason these large investors are buying Primis Financial Corp. is a calculated bet on a turnaround and strategic growth, backed by improved Q3 2025 performance. They are looking past the stock's 52-week low of $7.99 earlier this year.

Here's the quick math on their motivation:

• Improved Earnings: Q3 2025 net earnings jumped to $6.8 million, or $0.28 per share, a significant improvement from the prior year's quarter.
• Strategic Growth: The company is focused on core bank loan growth, with expectations set between $125 million and $175 million.
• Margin Expansion: Management is targeting a net interest margin (NIM) expansion to a range of 325 to 350 basis points.
• Dividend Income: Primis offers an attractive income stream with an annual dividend of $0.40 per share, translating to a yield near 3.7%.

Still, institutional investors are realists. They know the risks. Primis Financial Corp. has faced challenges, including credit concerns related to nonaccrual loans and a high P/E ratio that suggests the stock is modestly overvalued compared to its intrinsic value estimate of $9.37. Their continued investment is a vote of confidence in the management team's ability to navigate these issues while delivering on its digital banking and specialty division growth, like Panacea Financial.

For a deeper dive into the bank's core strengths and weaknesses, you should check out the full financial breakdown: Breaking Down Primis Financial Corp. (FRST) Financial Health: Key Insights for Investors.

Key Investors and Their Impact on Primis Financial Corp. (FRST)

If you're looking at Primis Financial Corp. (FRST), you need to understand who is holding the stock, because the big money drives the bus. The story here is a regional bank with a small float-the number of shares available for trading-that is heavily owned by institutional players, which lends a certain stability but also means their moves are amplified.

The institutional ownership of Primis Financial Corp. is remarkably high, sitting between 79.29% and 88.49% of the outstanding shares as of late 2025. This isn't a stock dominated by retail investors; it's a fund-manager's game. This high concentration means the stock price is defintely more sensitive to the quarterly 13F filings (reports that institutional investment managers file with the SEC) than to an earnings beat alone.

The Heavy Hitters: Who Owns the Largest Stakes

The largest shareholders are exactly who you'd expect: the giants of the asset management world, plus a few specialist financial services funds. The largest individual shareholder is Castle Creek Capital Partners IV LP, which holds a substantial 9.03% stake, equating to approximately 2,225,876 shares, valued around $24.08 million. This is a significant position for a relatively small bank with a market capitalization of about $271.58 million.

The sheer size of these institutional holdings means they have a quiet, powerful influence on the company's direction. They don't typically engage in public activism, but their private conversations with management about capital allocation-like the dividend policy or the share repurchase program-carry a lot of weight. You can see this focus in the company's actions, like the sale of a portion of its Panacea Financial Holdings, Inc. ownership in mid-2025, which was expected to generate around $22 million in proceeds to be used, in part, for an aggressive share repurchase program.

Here's a quick look at the top institutional investors and their approximate holdings from recent 2025 data:

Recent Investor Sentiment and Actionable Signals

Near-term investor sentiment is best gauged by who is actually putting their own money to work. What's interesting is the recent insider buying activity. Primis Financial Corp. directors are buying shares on the open market, which is a strong signal of confidence in the company's turnaround, especially following a year-to-date net income of $32 million through September 30, 2025.

• Director Robert Clagett purchased 2,268 shares on November 13, 2025, for a total cost of about $24,897.
• Director Eric A. Johnson bought 2,320 shares on October 28, 2025, with a total transaction value of roughly $24,827.

This insider buying, where directors use their own cash to purchase stock, is a concrete action that speaks louder than any press release. It suggests they believe the stock is undervalued, even though one analysis suggests the stock is modestly overvalued at a price-to-GF-Value ratio of 1.17. Honestly, you should pay attention to the insider buys-they know the financials best.

On the institutional side, the recent 13F filings show a mixed but active picture. While some funds are trimming their positions, others are adding significantly. For example, Two Sigma Investments LP increased its stake by an impressive +48.3%, and GSA Capital Partners LLP boosted its holding by +65.1% in recent quarters. This suggests a divergence in strategy: some are taking profits or rebalancing, but a core group of funds sees a growth opportunity in the bank's shift toward digital deposits and specialized lending like Panacea Financial and mortgage warehouse balances, which were up 411% year-over-year to $327 million by Q3 2025.

For a deeper dive into the fundamental health that is attracting these big investors, you should check out Breaking Down Primis Financial Corp. (FRST) Financial Health: Key Insights for Investors. Your next step, as a financial professional, is to map the recent institutional accumulation data against the Q3 2025 earnings report, specifically looking for correlations between the buying funds and the bank's improved net interest margin of 3.18%.

Market Impact and Investor Sentiment

You're looking at Primis Financial Corp. (FRST) and trying to figure out if the big money is buying or selling, which is defintely the right question. The short answer is that institutional sentiment is cautiously optimistic, but the market reaction is mixed, reflecting the tension between strong operational growth and revised-down earnings forecasts for the full year 2025.

The institutional ownership of Primis Financial Corp. is high at nearly 79.29%, which tells you that most of the stock is held by professional money managers, not retail investors. This is typical for a regional bank, but the recent activity is what matters. In Q3 2025, we saw selective interest; for example, MetLife Investment Management LLC increased its stake by 13.9%, and XTX Topco Ltd acquired a new $122,000 position. That's a clear vote of confidence from sophisticated players.

Still, the overall sentiment is complex. While major institutions are holding or adding, the stock's price-to-earnings (P/E) ratio is high at 97.9 compared to the industry median of 11.9, suggesting the market has already priced in a lot of future success. You're paying a premium for the expected turnaround.

• Institutional Ownership: 79.29%
• Insider Buying: Director Robert Clagett purchased shares in November 2025
• Q3 2025 Net Earnings: $6.8 million

Who's Buying and Why: The Major Shareholders

When you peel back the onion on who owns Primis Financial Corp., you see a mix of long-term financial partners and quantitative funds. The largest individual shareholder is Castle Creek Capital Partners IV LP, holding approximately 2.23 million shares, representing 9.03% of the company. Blackrock Inc., a company I know well, is also a major institutional owner with about 1.94 million shares.

The 'why' is driven by two things: the digital banking platform and the efficiency gains. The company's digital platform has already reached over $1.0 billion in deposits as of Q3 2025. This is a massive, low-cost deposit base that is highly attractive in a rising rate environment. Plus, insiders have been buying shares in November 2025, which is always a strong signal that management believes the stock is undervalued.

Here is a quick look at the top institutional holders, which shows where the conviction lies:

For a deeper dive into the company's balance sheet, you should check out Breaking Down Primis Financial Corp. (FRST) Financial Health: Key Insights for Investors.

Market Response to Ownership and Earnings

The stock market has reacted positively to the company's operational improvements and strategic moves in 2025, even when earnings missed estimates. For instance, following the Q3 2025 earnings report on October 23, 2025, the stock price rose 9.3% by October 28, 2025. This shows investors are focused on the underlying business trajectory, not just the quarterly headline number.

The sale of a portion of the company's ownership in Panacea Financial Holdings, Inc. in Q2 2025 was a major catalyst, expected to generate approximately $22 million in proceeds and a pre-tax gain of between $6.5 million and $7.0 million. Management indicated these proceeds could be used for an accretive share repurchase program, which is a strong signal of confidence and a direct way to boost earnings per share (EPS) for remaining shareholders.

The market is clearly rewarding capital efficiency and strategic exits. The stock price was trading around $10.88 as of November 14, 2025, which is near the upper end of its one-year range.

Analyst Perspectives on Key Investor Impact

Analyst perspectives are mixed, which is why the stock is a fascinating study in conflicting signals. The average brokerage recommendation is a 'Hold' to 'Strong Buy' range with an Average Brokerage Recommendation (ABR) of 1.67. The average one-year price target is a robust $13.63, suggesting a significant upside from the current price. That's a strong endorsement of the company's long-term value.

However, the full-year 2025 revenue estimates have been revised downward over the past 90 days, falling from $114.49 million to $108.08 million. This is the risk you need to map out. Analysts are betting heavily on the company's ability to achieve massive efficiency gains, projecting profit margins to surge from 2.3% to an impressive 104.9% over the next three years. This hinges on cost-cutting measures, including an expected $1.5 million in quarterly cost reductions through 2026. The institutional investors who are buying are essentially aligning with this aggressive margin expansion narrative.