First Trust Advisors LP Buys 134,490 Shares of Bank OZK $OZK

Key Points

• First Trust Advisors LP increased its Bank OZK stake by 4.6% in the first quarter, buying 134,490 more shares and bringing its total holding to 3,036,101 shares worth about $139.3 million.
• Bank OZK reported quarterly earnings of $1.49 per share, edging past estimates, but revenue came in below expectations and recent updates pointed to weaker net income, revenue, and credit quality trends.
• The bank boosted its quarterly dividend to $0.48 per share and approved a $200 million stock buyback, signaling confidence in the stock and returning more capital to shareholders.

First Trust Advisors LP lifted its stake in Bank OZK (NASDAQ:OZK - Free Report) by 4.6% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 3,036,101 shares of the company's stock after purchasing an additional 134,490 shares during the period. First Trust Advisors LP owned 2.71% of Bank OZK worth $139,327,000 at the end of the most recent quarter.

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

Bank OZK Price Performance

Bank OZK stock opened at $50.12 on Friday. The company has a market capitalization of $5.61 billion, a price-to-earnings ratio of 8.28 and a beta of 0.89. The company has a current ratio of 0.97, a quick ratio of 1.00 and a debt-to-equity ratio of 0.08. Bank OZK has a 12 month low of $42.37 and a 12 month high of $53.66. The stock's 50 day moving average is $49.93 and its 200-day moving average is $48.27.

Bank OZK (NASDAQ:OZK - Get Free Report) last released its quarterly earnings results on Tuesday, July 21st. The company reported $1.49 earnings per share 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 analysts' expectations of $436.42 million. Bank OZK had a return on equity of 11.87% and a net margin of 24.95%.The firm's revenue for the quarter was up .5% compared to the same quarter last year. During the same period last year, the firm posted $1.47 EPS. Equities research analysts expect that Bank OZK will post 5.98 EPS for the current year.

Bank OZK declared that its board has approved a stock buyback plan on Monday, June 29th that allows the company to repurchase $200.00 million in outstanding shares. This repurchase authorization allows the company to repurchase up to 3.4% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's board believes its stock is undervalued.

Bank OZK Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, July 20th. Shareholders of record on Monday, July 13th were given a dividend of $0.48 per share. This represents a $1.92 annualized dividend and a yield of 3.8%. 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 31.27%.

Key Headlines Impacting Bank OZK

Here are the key news stories impacting Bank OZK this week:

• Positive Sentiment: Management said Bank OZK is continuing to diversify its loan book, with real estate exposure dropping below 50% and the company outlining mid-single-digit loan growth for 2026, which could reduce concentration risk over time. Bank OZK drops real estate exposure below 50%
• Positive Sentiment: Bank OZK’s earnings call highlighted diversification gains and continued momentum in its commercial and industrial banking business, suggesting some parts of the franchise are offsetting weakness elsewhere. Bank OZK Earnings Call: Diversification Gains Amid Headwinds
• Positive Sentiment: Zacks Research raised earnings estimates for FY2026 and upcoming quarters, indicating some analysts see modestly better profitability ahead. Bank OZK Q2 Earnings Beat Estimates on Higher Fee Income, Shares Fall
• Neutral Sentiment: Morgan Stanley kept a Hold rating and a $56 price target, signaling a cautious but not bearish stance after the earnings update. Hold Rating Reiterated on Bank OZK as Earnings Headwinds Offset by CIB Momentum; $56 Price Target Unchanged
• Neutral Sentiment: The company also opened a new Denton location, a small expansion move that supports long-term footprint growth but is unlikely to drive the stock in the near term. Bank OZK to offer financial services at new Denton location
• Negative Sentiment: Q2 results showed earnings beat estimates, but revenue, net interest income, and credit quality trends were weaker than expected, which is weighing on sentiment and helping explain the stock’s recent weakness. Bank OZK Q2 Earnings Beat Estimates on Higher Fee Income, Shares Fall
• Negative Sentiment: Recent reports said quarterly net income and revenue declined, reinforcing concerns that near-term earnings pressure may persist despite the diversification strategy. Bank OZK posts quarterly declines in net income, revenue

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on OZK shares. UBS Group initiated coverage on Bank OZK in a research note on Tuesday, April 7th. They set a "neutral" rating and a $48.00 price objective on the stock. TD Cowen cut shares of Bank OZK from a "buy" rating to a "hold" rating and set a $53.00 target price on the stock. in a report on Monday, July 6th. Piper Sandler reiterated an "overweight" rating and issued a $61.00 target price on shares of Bank OZK in a research note on Wednesday. Wells Fargo & Company lifted their price target on Bank OZK from $50.00 to $52.00 and gave the stock an "equal weight" rating in a report on Monday, July 6th. Finally, Wall Street Zen raised Bank OZK from a "sell" rating to a "hold" rating in a research report on Sunday, May 17th. Three investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Bank OZK presently has a consensus rating of "Hold" and an average target price of $56.12.

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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