Bank OZK (NASDAQ:OZK) Downgraded by Wall Street Zen to Sell

Key Points

• Wall Street Zen downgraded Bank OZK from hold to sell, adding a bearish note to the stock’s analyst coverage.
• The broader analyst picture is still mixed: Bank OZK currently has a consensus hold rating and an average $56 price target, with several firms maintaining or adjusting their views around that level.
• The bank recently beat earnings estimates by a penny, reported a slight revenue miss, and its board authorized a $200 million share buyback, signaling management support for the stock.

Bank OZK (NASDAQ:OZK - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report released on Saturday.

OZK has been the subject of a number of other research reports. Piper Sandler reissued an "overweight" rating and issued a $61.00 price target on shares of Bank OZK in a report on Wednesday. Morgan Stanley lifted their price objective on Bank OZK from $54.00 to $56.00 and gave the stock an "equal weight" rating in a report on Monday, June 29th. UBS Group began coverage on Bank OZK in a research report on Tuesday, April 7th. They issued a "neutral" rating and a $48.00 target price on the stock. TD Cowen decreased their price target on shares of Bank OZK from $53.00 to $52.00 and set a "hold" rating for the company in a research report on Friday. Finally, Weiss Ratings raised shares of Bank OZK from a "buy (b-)" rating to a "buy (b)" rating in a research report on Tuesday, June 23rd. Three equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $56.00.

Bank OZK Stock Performance

Bank OZK stock opened at $50.33 on Friday. Bank OZK has a 12-month low of $42.37 and a 12-month high of $53.66. The company has a debt-to-equity ratio of 0.08, a current ratio of 0.97 and a quick ratio of 1.00. The company has a market capitalization of $5.63 billion, a price-to-earnings ratio of 8.32 and a beta of 0.89. The firm's fifty day moving average price is $50.01 and its 200 day moving average price is $48.28.

Bank OZK (NASDAQ:OZK - Get Free Report) last posted its quarterly earnings data on Tuesday, July 21st. The company reported $1.49 earnings per share for the quarter, beating analysts' consensus estimates of $1.48 by $0.01. The company had revenue of $430.02 million during the quarter, compared to analysts' expectations of $436.42 million. Bank OZK had a net margin of 24.95% and a return on equity of 11.87%. The firm's revenue for the quarter was up .5% on a year-over-year basis. During the same period in the prior year, the company posted $1.47 EPS. On average, research analysts forecast that Bank OZK will post 5.97 EPS for the current fiscal year.

Bank OZK announced that its board has initiated a stock buyback plan on Monday, June 29th that permits the company to buyback $200.00 million in outstanding shares. This buyback authorization permits the company to purchase up to 3.4% of its shares through open market purchases. Shares buyback plans are often an indication that the company's management believes its stock is undervalued.

Hedge Funds Weigh In On Bank OZK

A number of hedge funds have recently added to or reduced their stakes in OZK. V Square Quantitative Management LLC acquired a new stake in shares of Bank OZK during the fourth quarter worth $25,000. BOKF NA bought a new position in shares of Bank OZK in the 3rd quarter worth about $27,000. Bayforest Capital Ltd grew its position in shares of Bank OZK by 100.5% during the 4th quarter. Bayforest Capital Ltd now owns 766 shares of the company's stock valued at $35,000 after buying an additional 384 shares during the last quarter. Eurizon Capital SGR S.p.A. bought a new stake in shares of Bank OZK during the 4th quarter valued at about $36,000. Finally, Transamerica Financial Advisors LLC raised its stake in Bank OZK by 111.2% during the fourth quarter. Transamerica Financial Advisors LLC now owns 830 shares of the company's stock worth $38,000 after acquiring an additional 437 shares during the period. Institutional investors and hedge funds own 86.18% of the company's stock.

Bank OZK Company Profile

Bank OZK, formerly known as Bank of the Ozarks, is a regional commercial bank headquartered in Little Rock, Arkansas. Established in 1903, the bank offers a full suite of banking products and services to both individual and corporate clients. Through a combination of organic growth and targeted acquisitions, Bank OZK has built a diversified lending portfolio and a strong deposit franchise.

The bank's core operations focus on commercial real estate lending, including acquisition, development and construction financing.

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