Columbia Banking System Inc. has become the focus of notable portfolio repositioning by several major institutional money managers. Recent regulatory filings reveal that significant financial players have trimmed their holdings in the regional bank, even as it maintains a compelling dividend profile.
Dividend Appeal Amid Selling Pressure
For income-focused shareholders, Columbia Banking System continues to present an attractive case. The company raised its quarterly dividend to $0.37 per share, translating to an annual payout of $1.48. With shares trading around $28.18, this equates to a dividend yield of approximately 5.3%. This yield remains competitive within the regional banking sector. Shareholders of record as of November 28 will receive the payment on December 15, 2025.
This income characteristic, however, has not prevented some large investors from scaling back their exposure.
Notable Reductions in Holdings
Recent 13F filings detailing second-quarter 2025 activity show specific reductions. Epoch Investment Partners Inc. decreased its position by 187,689 shares, a cut of about 6.9%. Following this move, the firm retains a stake representing roughly 1.2% of the company.
A more substantial pullback was executed by the New York State Common Retirement Fund. The pension fund sold 218,803 shares, reducing its holding by 32.3%. It retains a position valued at approximately $10.7 million at current prices.
Should investors sell immediately? Or is it worth buying Columbia Banking System?
Valuation Metrics and Analyst Perspectives
The institutional selling activity contrasts with the stock’s fundamental metrics. Columbia Banking System shares trade at a price-to-earnings ratio ranging from 12.7 to 17.6, depending on the calculation method.
The consensus rating among analysts currently stands at “Hold.” The average price target falls between $29.38 and $29.62, suggesting a potential upside of 4% to 5% from current levels. Some valuation models, including certain discounted-cash-flow analyses, project a theoretical fair value as high as $57.69 in optimistic scenarios.
Passive Holdings Provide a Counterbalance
Despite active managers selling, the bank’s stock maintains a firm place in key passive investment vehicles. It remains a relevant component of the regional banking sector for index funds. The SPDR S&P Regional Banking ETF (KRE) continues to allocate 2.14% of its portfolio to Columbia Banking System. Similarly, the Schwab U.S. Small-Cap ETF (SCHA) holds a position worth about $40.7 million.
This dynamic highlights a divergence in investment approaches: passive strategies provide consistent baseline support through index inclusion, while active managers are reassessing their positions. This tension underscores the complex investment narrative surrounding Columbia Banking System in the current market environment.
Ad
Columbia Banking System Stock: Buy or Sell?! New Columbia Banking System Analysis from December 7 delivers the answer:
The latest Columbia Banking System figures speak for themselves: Urgent action needed for Columbia Banking System investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from December 7.
Columbia Banking System: Buy or sell? Read more here...
