Saturday, November 28, 2020

Keefe Bruyette lifts Cadence Bancorporation [CADE] price estimate. Who else is bullish?

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Cadence Bancorporation [NYSE: CADE] traded at a high on 10/22/20, posting a 3.08 gain after which it closed the day’ session at $12.05. The company report on October 21, 2020 that Cadence Bancorporation Reports Third Quarter 2020 Financial Results.

Cadence Bancorporation (NYSE: CADE) (“Cadence”) today announced net income for the quarter ended September 30, 2020 of $49.3 million or $0.39 per share, compared to net income of $44.0 million or $0.34 per share for the quarter ended September 30, 2019, and a net loss of ($56.1) million or ($0.45) per share for the quarter ended June 30, 2020. Adjusted net income (loss)(1), excluding non-routine income and expenses(2), was $51.4 million or $0.40 per share for the quarter ended September 30, 2020, compared to $44.2 million or $0.34 per share for the quarter ended September 30, 2019 and compared to ($56.9) million or ($0.45) per share for the quarter ended June 30, 2020.


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“We are pleased to report that our company’s core fundamental performance continues to be resilient. For the third quarter, adjusted pre-tax pre-provision net revenue (“PPNR”) was $94.6 million, 2.06% of average assets. Our net interest margin (“NIM”) and efficiency ratio have been consistently attractive and favorable to peers. Credit pressure still exists in today’s economy, but charge-offs are down linked quarter, nonperforming assets are lower and loan deferrals declined significantly to 1.5% currently. Our attractive capital ratios further improved linked quarter with Common Equity Tier 1 capital increasing to 12.0%. Based on these factors, we are taking a step forward by increasing our fourth quarter dividend to $0.075 cents per share. While there remains considerable uncertainty about how this credit environment will play out, I am proud of the way our experienced senior leadership and each of our employees continue to serve our customers and enhance our bank. As the economy improves, we will be well positioned for growth in some of the most attractive markets in America,” stated Paul B. Murphy, Jr., Chairman and Chief Executive Officer of Cadence Bancorporation.

The results of the trading session contributed to over 2341731 shares changing hands. Over the past one week, the price volatility of Cadence Bancorporation stands at 4.21% while the volatility over the past one month is 4.79%.

The market cap for CADE stock reached $1.53 billion, with 125.93 million shares outstanding and 121.73 million shares in the current float. Compared to the average trading volume of 1.41M shares, CADE reached a trading volume of 2341731 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Cadence Bancorporation [CADE]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for CADE shares is $11.11 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on CADE stock is a recommendation set at 2.20. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Keefe Bruyette have made an estimate for Cadence Bancorporation shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on August 19, 2020. While these analysts kept the previous recommendation, Truist dropped their target price from $9 to $14. The new note on the price target was released on August 14, 2020, representing the official price target for Cadence Bancorporation stock. Previously, the target price had yet another raise to $12, while Raymond James analysts kept a Strong Buy rating on CADE stock. On October 24, 2019, analysts decreased their price target for CADE shares from 20 to 16.50.

The Average True Range (ATR) for Cadence Bancorporation is set at 0.49, with the Price to Sales ratio for CADE stock in the period of the last 12 months amounting to 1.93. The Price to Book ratio for the last quarter was 0.74, with the Price to Cash per share for the same quarter was set at 15.62. Price to Free Cash Flow for CADE in the course of the last twelve months was 2.76.

How has CADE stock performed recently?

Cadence Bancorporation [CADE] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 14.98. With this latest performance, CADE shares gained by 51.95% in over the last four-week period, additionally plugging by 123.56% over the last 6 months – not to mention a drop of -23.44% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for CADE stock in for the last two-week period is set at 76.01, with the RSI for the last a single of trading hit 83.01, and the three-weeks RSI is set at 71.16 for Cadence Bancorporation [CADE]. The present Moving Average for the last 50 days of trading for this stock 9.48, while it was recorded at 11.13 for the last single week of trading, and 9.68 for the last 200 days.

Cadence Bancorporation [CADE]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Cadence Bancorporation [CADE] shares currently have an operating margin of +29.03. Cadence Bancorporation’s Net Margin is presently recorded at +21.07.

Return on Total Capital for CADE is now 11.51, given the latest momentum, and Return on Invested Capital for the company is 8.37. Return on Equity for this stock inclined to 10.32, with Return on Assets sitting at 1.31. When it comes to the capital structure of this company, Cadence Bancorporation [CADE] has a Total Debt to Total Equity ratio set at 18.27. Additionally, CADE Total Debt to Total Capital is recorded at 15.45, with Total Debt to Total Assets ending up at 2.51. Long-Term Debt to Equity for the company is recorded at 17.82, with the Long-Term Debt to Total Capital now at 15.06.

Reflecting on the efficiency of the workforce at the company, Cadence Bancorporation [CADE] managed to generate an average of $108,856 per employee.

Earnings analysis for Cadence Bancorporation [CADE]

With the latest financial reports released by the company, Cadence Bancorporation posted 0.34/share EPS, while the average EPS was predicted by analysts to be reported at 0.49/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -30.60%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for CADE.

Insider trade positions for Cadence Bancorporation [CADE]

There are presently around $1,375 million, or 92.20% of CADE stock, in the hands of institutional investors. The top three institutional holders of CADE stocks are: BLACKROCK INC. with ownership of 18,147,901, which is approximately -2.461% of the company’s market cap and around 1.50% of the total institutional ownership; VANGUARD GROUP INC, holding 12,602,973 shares of the stock with an approximate value of $151.87 million in CADE stocks shares; and SHAPIRO CAPITAL MANAGEMENT LLC, currently with $99.27 million in CADE stock with ownership of nearly 4.392% of the company’s market capitalization.

Positions in Cadence Bancorporation stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 124 institutional holders increased their position in Cadence Bancorporation [NYSE:CADE] by around 16,405,726 shares. Additionally, 102 investors decreased positions by around 12,752,413 shares, while 34 investors held positions by with 84,950,250 shares. The mentioned changes placed institutional holdings at 114,108,389 shares, according to the latest SEC report filing. CADE stock had 43 new institutional investments in for a total of 4,390,039 shares, while 41 institutional investors sold positions of 3,598,587 shares during the same period.

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