Bank of New York Mellon Corp Acquires New Shares in Bank OZK $OZK

Key Points

• Bank of New York Mellon acquired 1.22 million Bank OZK shares worth approximately $63.4 million, giving it a 1.09% stake. Institutional investors and hedge funds collectively own 86.18% of the bank.
• Bank OZK slightly exceeded quarterly earnings expectations, reporting EPS of $1.49 versus the $1.48 consensus, while revenue reached $430.02 million. The bank also authorized a $200 million share buyback program.
• The company raised its quarterly dividend to $0.48 per share, or $1.92 annually, representing a 3.9% yield. Analysts maintain a consensus “Hold” rating with an average price target of $56.88.

Bank of New York Mellon Corp acquired a new position in shares of Bank OZK (NASDAQ:OZK - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund acquired 1,217,324 shares of the company's stock, valued at approximately $63,410,000. Bank of New York Mellon Corp owned about 1.09% of Bank OZK as of its most recent SEC filing.

Other institutional investors and hedge funds have also bought and sold shares of the company. Quadrant Capital Group LLC increased its stake in shares of Bank OZK by 4.2% in the fourth quarter. Quadrant Capital Group LLC now owns 5,446 shares of the company's stock valued at $251,000 after buying an additional 218 shares during the period. Kera Capital Partners Inc. raised its position in Bank OZK by 2.1% during the 4th quarter. Kera Capital Partners Inc. now owns 11,336 shares of the company's stock worth $539,000 after purchasing an additional 236 shares during the last quarter. Cardinal Capital Management lifted its holdings in Bank OZK by 0.6% during the 4th quarter. Cardinal Capital Management now owns 48,979 shares of the company's stock worth $2,254,000 after buying an additional 277 shares during the period. Cornerstone Wealth Management LLC lifted its holdings in Bank OZK by 4.5% during the 4th quarter. Cornerstone Wealth Management LLC now owns 6,403 shares of the company's stock worth $295,000 after buying an additional 278 shares during the period. Finally, Illinois Municipal Retirement Fund grew its position in shares of Bank OZK by 0.8% in the 4th quarter. Illinois Municipal Retirement Fund now owns 38,261 shares of the company's stock valued at $1,761,000 after buying an additional 317 shares during the last quarter. Institutional investors and hedge funds own 86.18% of the company's stock.

Bank OZK Stock Performance

Shares of Bank OZK stock opened at $49.47 on Thursday. Bank OZK has a 52 week low of $42.37 and a 52 week high of $53.66. The company has a quick ratio of 0.97, a current ratio of 0.97 and a debt-to-equity ratio of 0.08. The business has a 50 day moving average price of $50.88 and a 200-day moving average price of $48.81. The company has a market cap of $5.53 billion, a PE ratio of 8.18 and a beta of 0.89.

Bank OZK (NASDAQ:OZK - Get Free Report) last announced its quarterly earnings results on Tuesday, July 21st. The company reported $1.49 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.48 by $0.01. The business had revenue of $430.02 million during the quarter, compared to the consensus estimate of $436.42 million. Bank OZK had a return on equity of 11.87% and a net margin of 24.95%.Bank OZK's revenue was up .5% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.47 earnings per share. Equities analysts anticipate that Bank OZK will post 5.85 earnings per share for the current fiscal year.

Bank OZK declared that its board has approved a stock buyback program on Monday, June 29th that permits the company to buyback $200.00 million in outstanding shares. This buyback authorization permits the company to reacquire up to 3.4% of its shares through open market purchases. Shares buyback programs are often an indication that the company's leadership believes its shares are undervalued.

Bank OZK Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, July 20th. Stockholders of record on Monday, July 13th were paid a $0.48 dividend. This represents a $1.92 annualized dividend and a dividend yield of 3.9%. The ex-dividend date was Monday, July 13th. This is a positive change from Bank OZK's previous quarterly dividend of $0.47. Bank OZK's dividend payout ratio (DPR) is currently 31.74%.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on the stock. Wall Street Zen raised shares of Bank OZK from a "sell" rating to a "hold" rating in a research report on Saturday, August 8th. Zacks Research downgraded shares of Bank OZK from a "hold" rating to a "strong sell" rating in a research report on Thursday, August 13th. Weiss Ratings raised shares of Bank OZK from a "buy (b-)" rating to a "buy (b)" rating in a research note on Tuesday, June 23rd. Morgan Stanley increased their price objective on shares of Bank OZK from $54.00 to $56.00 and gave the stock an "equal weight" rating in a research report on Monday, June 29th. Finally, UBS Group lifted their target price on shares of Bank OZK from $50.00 to $51.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 28th. Three research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $56.88.

About Bank OZK

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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