While major financial institutions compete for customers, a notable transformation is underway at First Busey, a Midwest regional bank that is increasingly capturing the attention of major investment firms. This previously lesser-known entity is now drawing substantial capital from sophisticated institutional players, raising the question: what do these fund managers see that the average investor might be missing?
Strategic Acquisition Fuels Expansion
The catalyst for this shift appears to be a pivotal strategic move completed in March 2025: the acquisition of CrossFirst Bankshares. This transaction has fundamentally reshaped First Busey, transforming it from a locally focused bank into a commercial banking presence spanning more than ten states. The financial impact has been significant, with revenue growth exceeding 70%, a rate that substantially outpaces the industry average.
Major Funds Build Significant Positions
This expansion has not gone unnoticed by large investment houses, which have been actively accumulating shares. The first quarter saw Elizabeth Park Capital acquire a stake valued at $475,000. In even more substantial moves, both T. Rowe Price and Nuveen LLC established new positions comprising hundreds of thousands of shares. This pronounced institutional demand signals strong confidence in the bank’s long-term strategic direction.
Should investors sell immediately? Or is it worth buying First Busey?
Analyst Consensus Points to Upside
Market experts have been examining First Busey’s prospects, with six analysts issuing coverage last quarter. Their consensus recommendation stands at “Moderate Buy.” Perhaps more importantly, the average price target was recently raised from $26.25 to $27.50, suggesting an anticipated upside of nearly 12% from current trading levels.
The bank does face certain challenges, however. Key profitability metrics, including net margin and return on equity, currently lag behind industry standards. In contrast, First Busey maintains a focus on financial stability, operating with a comparatively low debt level.
Integration Success Hinges on Next Earnings
The next critical test arrives on October 28th, when First Busey is scheduled to release its upcoming quarterly results. This report will provide crucial evidence on whether the integration of CrossFirst is delivering the expected synergies and if the current growth narrative is sustainable. The major institutional investors appear to have already placed their bets on a positive outcome.
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