Shares of Tompkins Financial have demonstrated stability in the wake of a significant business unit sale. The regional financial services firm completed the divestiture of its insurance operations to Arthur J. Gallagher & Co. for $223 million in November. Company leadership frames the move as a strategic effort to sharpen corporate focus and reinforce its capital foundation.
Market Analysts Weigh In on Strategic Shift
Financial researchers have started to incorporate the implications of this transaction into their assessments. In early December, Piper Sandler initiated coverage on the stock with a “Neutral” rating, attaching a $74.00 price target. The firm’s analysts highlighted anticipated profitability enhancements stemming directly from the sale.
This was followed by an upgrade from Zacks Research to a “Hold” recommendation. The current consensus price target among analysts covering the stock stands at $77.00 for the next twelve months, with individual estimates ranging from $74.00 to $80.00.
Should investors sell immediately? Or is it worth buying Tompkins?
The sale of Tompkins Insurance Agencies generated a substantial pre-tax gain of $183 million. This gain offsets a large portion of a $79.5 million loss the company recorded this year from a securities restructuring effort. The insurance division, which was 150 years old, had most recently generated annual revenue of approximately $40 million.
A Contrast in Share Performance Metrics
The equity performance of Tompkins Financial presents a mixed picture when viewed across different time horizons. Over the past year, the shares have advanced by 19.1%, slightly outperforming the S&P 500 index. However, looking at a three-year period reveals a decline of 9% for the company, a timeframe during which the broader market experienced significant growth.
Looking ahead, Piper Sandler forecasts earnings per share growth of 17% for the 2026 fiscal year. Their projections, however, anticipate a moderation in this growth rate to 8% for 2027. The market will gain further insight into the effects of this portfolio optimization when the company releases its next quarterly results, scheduled for January 30, 2026.
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