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

Cadence Bank (NYSE:CADE)’s stock price gapped up before the market opened on Tuesday following a better than expected earnings announcement. 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 traded.

The company reported $0.62 EPS for the quarter, topping the consensus estimate of $0.54 by $0.08. The company had revenue of $437.69 million for the quarter, compared to analysts’ expectations of $427.18 million. Cadence Bank had a return on equity of 9.55% and a net margin of 23.33%. The business’s revenue for the quarter was up 12.6% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.68 earnings per share.

Cadence Bank Increases Dividend

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

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on CADE. Jefferies Financial Group reduced their target price on Cadence Bank from $30.00 to $29.00 and set a “hold” rating on the stock in a report on Monday, April 8th. Hovde Group cut Cadence Bank from an “outperform” rating to a “market perform” rating and set a $32.50 target price on the stock. in a report on Tuesday, January 30th. TheStreet cut Cadence Bank from a “b” rating to a “c” rating in a report on Tuesday, January 30th. Citigroup raised their target price on Cadence Bank from $27.00 to $32.00 and gave the stock a “neutral” rating in a report on Friday, December 29th. Finally, Barclays started coverage on Cadence Bank in a report on Friday, March 8th. They set an “equal weight” rating and a $28.00 target price on the stock. Six equities research analysts have rated the stock with a hold rating, four have issued a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat, Cadence Bank presently has an average rating of “Moderate Buy” and a consensus target price of $30.75.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Norges Bank acquired a new position in shares of Cadence Bank during the 4th quarter worth $60,490,000. Wellington Management Group LLP raised its holdings in shares of Cadence Bank by 15.7% during the 3rd quarter. Wellington Management Group LLP now owns 7,827,982 shares of the company’s stock worth $166,110,000 after buying an additional 1,063,055 shares in the last quarter. Vaughan Nelson Investment Management L.P. raised its holdings in shares of Cadence Bank by 81.3% during the 4th quarter. Vaughan Nelson Investment Management L.P. now owns 1,532,423 shares of the company’s stock worth $45,344,000 after buying an additional 687,025 shares in the last quarter. Ranger Investment Management L.P. raised its holdings in shares of Cadence Bank by 59.4% during the 4th quarter. Ranger Investment Management L.P. now owns 1,054,575 shares of the company’s stock worth $31,205,000 after buying an additional 393,037 shares in the last quarter. Finally, Dimensional Fund Advisors LP increased its holdings in Cadence Bank by 4.3% in the 4th quarter. Dimensional Fund Advisors LP now owns 9,240,127 shares of the company’s stock worth $273,421,000 after purchasing an additional 376,989 shares in the last quarter. 84.61% of the stock is currently owned by institutional investors.

Cadence Bank Trading Up 3.3 %

The business 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 quick ratio of 0.85 and a current ratio of 0.86. The firm has a market cap of $5.23 billion, a price-to-earnings ratio of 9.86 and a beta of 1.02.

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.