Cadence Bank (NYSE:CADE) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Cadence Bank has received an average recommendation of "Moderate Buy" from ten research firms, with a target price of $40.40.
• Recent earnings reports showed that Cadence Bank exceeded analysts' expectations with $0.73 earnings per share and a revenue of $476.32 million for the last quarter.
• The bank has authorized a share repurchase plan allowing it to buy back 10 million shares, indicating management believes the stock is undervalued.

Cadence Bank (NYSE:CADE - Get Free Report) has received an average recommendation of "Moderate Buy" from the ten ratings firms that are currently covering the firm, Marketbeat.com reports. Three research analysts have rated the stock with a hold recommendation and seven have given a buy recommendation to the company. The average 1-year target price among brokerages that have updated their coverage on the stock in the last year is $40.40.

A number of equities analysts have recently commented on the stock. Hovde Group lifted their price target on shares of Cadence Bank from $34.00 to $40.00 and gave the stock a "market perform" rating in a report on Monday, July 28th. Royal Bank Of Canada lifted their price target on shares of Cadence Bank from $34.00 to $37.00 and gave the stock a "sector perform" rating in a report on Friday, July 25th. Wall Street Zen lowered shares of Cadence Bank from a "hold" rating to a "sell" rating in a report on Saturday, July 26th. Keefe, Bruyette & Woods lifted their price target on shares of Cadence Bank from $40.00 to $41.00 and gave the stock an "outperform" rating in a report on Monday, July 28th. Finally, Barclays reiterated an "overweight" rating and set a $41.00 price target (up previously from $38.00) on shares of Cadence Bank in a report on Tuesday, July 8th.

Cadence Bank Stock Performance

NYSE CADE opened at $36.17 on Thursday. The firm's fifty day moving average price is $33.47 and its two-hundred day moving average price is $31.85. The stock has a market cap of $6.59 billion, a PE ratio of 12.87 and a beta of 0.89. Cadence Bank has a fifty-two week low of $25.22 and a fifty-two week high of $40.20. The company has a debt-to-equity ratio of 0.25, a quick ratio of 0.87 and a current ratio of 0.87.

Cadence Bank (NYSE:CADE - Get Free Report) last posted its earnings results on Wednesday, July 23rd. The company reported $0.73 earnings per share for the quarter, topping analysts' consensus estimates of $0.69 by $0.04. The firm had revenue of $476.32 million for the quarter, compared to analysts' expectations of $467.60 million. Cadence Bank had a net margin of 18.79% and a return on equity of 9.84%. During the same quarter in the previous year, the firm posted $0.73 earnings per share. On average, equities analysts expect that Cadence Bank will post 2.94 EPS for the current fiscal year.

Cadence Bank declared that its board has authorized a share repurchase plan on Friday, April 25th that allows the company to repurchase 10,000,000 outstanding shares. This repurchase authorization allows the company to repurchase shares of its stock through open market purchases. Shares repurchase plans are typically a sign that the company's management believes its shares are undervalued.

Cadence Bank Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders of record on Monday, September 15th will be issued a dividend of $0.275 per share. The ex-dividend date is Monday, September 15th. This represents a $1.10 annualized dividend and a yield of 3.0%. Cadence Bank's dividend payout ratio is presently 39.15%.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the business. Wells Fargo & Company MN increased its position in shares of Cadence Bank by 26.3% during the fourth quarter. Wells Fargo & Company MN now owns 114,265 shares of the company's stock worth $3,936,000 after acquiring an additional 23,809 shares in the last quarter. Envestnet Asset Management Inc. increased its position in shares of Cadence Bank by 2.5% during the fourth quarter. Envestnet Asset Management Inc. now owns 60,745 shares of the company's stock worth $2,093,000 after acquiring an additional 1,494 shares in the last quarter. Cerity Partners LLC increased its position in shares of Cadence Bank by 4.7% during the fourth quarter. Cerity Partners LLC now owns 67,392 shares of the company's stock worth $2,173,000 after acquiring an additional 3,015 shares in the last quarter. Bank of Montreal Can increased its position in shares of Cadence Bank by 7.2% during the fourth quarter. Bank of Montreal Can now owns 36,514 shares of the company's stock worth $1,258,000 after acquiring an additional 2,462 shares in the last quarter. Finally, Synovus Financial Corp increased its position in shares of Cadence Bank by 8.5% during the fourth quarter. Synovus Financial Corp now owns 28,899 shares of the company's stock worth $996,000 after acquiring an additional 2,272 shares in the last quarter. 84.61% of the stock is currently owned by institutional investors and hedge funds.

About Cadence Bank

Cadence Bank provides commercial banking and financial services. Its products and services include consumer banking, consumer loans, mortgages, home equity lines and loans, credit cards, commercial and business banking, treasury management, specialized and asset-based lending, commercial real estate, equipment financing, and correspondent banking services.

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