Cadence Bank (NYSE:CADE) Shares Gap Up Following Strong Earnings

Cadence Bank (NYSE:CADE)’s share price gapped up prior to trading on Tuesday following a stronger than expected earnings report. The stock had previously closed at $27.74, but opened at $28.99. Cadence Bank shares last traded at $28.42, with a volume of 185,193 shares trading hands.

The company reported $0.62 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.54 by $0.08. Cadence Bank had a net margin of 23.33% and a return on equity of 9.55%. The business had revenue of $437.69 million during the quarter, compared to analyst estimates of $427.18 million. During the same period last year, the firm posted $0.68 EPS. The company’s revenue was up 12.6% on a year-over-year basis.

Cadence Bank Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, April 1st. Investors of record on Friday, March 15th were issued a $0.25 dividend. The ex-dividend date of this dividend was Thursday, March 14th. This is a positive change from Cadence Bank’s previous quarterly dividend of $0.24. This represents a $1.00 dividend on an annualized basis and a dividend yield of 3.49%. Cadence Bank’s dividend payout ratio (DPR) is 34.36%.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on the stock. TheStreet lowered shares of Cadence Bank from a “b” rating to a “c” rating in a report on Tuesday, January 30th. Morgan Stanley raised their price target on Cadence Bank from $24.00 to $27.00 and gave the stock an “equal weight” rating in a research report on Wednesday, February 7th. Hovde Group downgraded Cadence Bank from an “outperform” rating to a “market perform” rating and set a $32.50 price target for the company. in a research report on Tuesday, January 30th. Raymond James decreased their target price on Cadence Bank from $35.00 to $34.00 and set a “strong-buy” rating for the company in a research report on Wednesday, January 31st. Finally, Citigroup lifted their target price on Cadence Bank from $27.00 to $32.00 and gave the stock a “neutral” rating in a research report on Friday, December 29th. Six research analysts have rated the stock with a hold rating, four have issued a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat.com, Cadence Bank presently has an average rating of “Moderate Buy” and an average target price of $30.75.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of CADE. Fifth Third Bancorp lifted its holdings in Cadence Bank by 165.8% in the third quarter. Fifth Third Bancorp now owns 1,451 shares of the company’s stock valued at $31,000 after acquiring an additional 905 shares during the period. Wolverine Asset Management LLC lifted its holdings in Cadence Bank by 952.0% in the fourth quarter. Wolverine Asset Management LLC now owns 1,052 shares of the company’s stock valued at $31,000 after acquiring an additional 952 shares during the period. Rise Advisors LLC acquired a new position in Cadence Bank in the first quarter valued at approximately $34,000. Ronald Blue Trust Inc. lifted its holdings in Cadence Bank by 166.6% in the third quarter. Ronald Blue Trust Inc. now owns 3,674 shares of the company’s stock valued at $72,000 after acquiring an additional 2,296 shares during the period. Finally, Allspring Global Investments Holdings LLC lifted its holdings in Cadence Bank by 8.5% in the third quarter. Allspring Global Investments Holdings LLC now owns 6,697 shares of the company’s stock valued at $142,000 after acquiring an additional 524 shares during the period. 84.61% of the stock is owned by institutional investors and hedge funds.

Cadence Bank Price Performance

The company has a market capitalization of $5.23 billion, a price-to-earnings ratio of 9.86 and a beta of 1.02. The stock has a fifty day simple moving average of $27.56 and a 200-day simple moving average of $26.46. The company has a debt-to-equity ratio of 0.09, a current ratio of 0.86 and a quick ratio of 0.85.

Cadence Bank Company Profile

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.