why Umpqua Holdings Corporation [UMPQ] is a Good Choice for Investors After New Price Target of $21.06

Umpqua Holdings Corporation [NASDAQ: UMPQ] closed the trading session at $18.11 on 07/22/21. The day’s price range saw the stock hit a low of $18.06, while the highest price level was $18.93. The company report on July 22, 2021 that Umpqua Holdings Announces Approval Of New Share Repurchase Plan.

Umpqua Holdings Corporation (NASDAQ: UMPQ) (the “Company”) announced that its Board of Directors has approved a new share repurchase program (the “Program”) which authorizes the Company to repurchase up to $400 million of common stock over the next twelve months. The Program replaces and supersedes the previously approved share repurchase program which was scheduled to expire on July 31, 2021.

Under the new stock repurchase program, the Company may repurchase shares of common stock from time to time in open market transactions, accelerated share repurchases, or in privately negotiated transactions as permitted under applicable rules and regulations. Repurchases may be conducted and may be suspended or terminated at any time without notice. The extent to which the Company repurchases its shares of common stock and the timing of such purchases will depend upon market conditions, the Company’s and Umpqua Bank’s capital position, and other considerations as may be considered in the Company’s sole discretion. The Company and Umpqua Bank have received all necessary bank holding company and bank regulatory approvals for the Program. Repurchases may also be made pursuant to a trading plan under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, which would permit shares to be repurchased when the Company might otherwise be precluded from doing so because of self-imposed trading blackout periods or other regulatory restrictions.

The stocks have a year to date performance of 19.62 percent and weekly performance of -0.93 percent. The stock has been moved at 14.84 percent over the last six months. The stock has performed -1.47 percent around the most recent 30 days and changed 3.37 percent over the most recent 3-months.

If compared to the average trading volume of 1.39M shares, UMPQ reached to a volume of 2448872 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about Umpqua Holdings Corporation [UMPQ]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for UMPQ shares is $21.06 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on UMPQ stock is a recommendation set at 2.30. 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.

Truist have made an estimate for Umpqua Holdings Corporation shares, keeping their opinion on the stock as Buy, with their previous recommendation back on June 21, 2021. While these analysts kept the previous recommendation, Stephens raised their target price to Overweight. The new note on the price target was released on October 27, 2020, representing the official price target for Umpqua Holdings Corporation stock. Previously, the target price had yet another raise to $11.50, while JP Morgan analysts kept a Underweight rating on UMPQ stock. On October 08, 2020, analysts increased their price target for UMPQ shares from 12 to 14.

The Average True Range (ATR) for Umpqua Holdings Corporation is set at 0.61, with the Price to Sales ratio for UMPQ stock in the period of the last 12 months amounting to 4.18. The Price to Book ratio for the last quarter was 1.49, with the Price to Cash per share for the same quarter was set at 14.78. Price to Free Cash Flow for UMPQ in the course of the last twelve months was 10.06.

UMPQ stock trade performance evaluation

Umpqua Holdings Corporation [UMPQ] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -0.93. With this latest performance, UMPQ shares dropped by -1.47% in over the last four-week period, additionally plugging by 14.84% over the last 6 months – not to mention a rise of 61.99% 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 UMPQ stock in for the last two-week period is set at 48.61, with the RSI for the last a single of trading hit 50.27, and the three-weeks RSI is set at 48.29 for Umpqua Holdings Corporation [UMPQ]. The present Moving Average for the last 50 days of trading for this stock 18.58, while it was recorded at 17.80 for the last single week of trading, and 16.59 for the last 200 days.

Umpqua Holdings Corporation [UMPQ]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Umpqua Holdings Corporation [UMPQ] shares currently have an operating margin of +23.21. Umpqua Holdings Corporation’s Net Margin is presently recorded at -107.63.

Return on Total Capital for UMPQ is now 6.36, given the latest momentum, and Return on Invested Capital for the company is -36.44. Return on Equity for this stock declined to -43.41, with Return on Assets sitting at -5.22. When it comes to the capital structure of this company, Umpqua Holdings Corporation [UMPQ] has a Total Debt to Total Equity ratio set at 59.30. Additionally, UMPQ Total Debt to Total Capital is recorded at 37.23, with Total Debt to Total Assets ending up at 5.45. Long-Term Debt to Equity for the company is recorded at 17.14, with the Long-Term Debt to Total Capital now at 10.76.

Reflecting on the efficiency of the workforce at the company, Umpqua Holdings Corporation [UMPQ] managed to generate an average of -$388,628 per employee.

Earnings per share (EPS) analysis for Umpqua Holdings Corporation [UMPQ] stock

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 UMPQ. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Umpqua Holdings Corporation go to 10.00%.

Umpqua Holdings Corporation [UMPQ]: Insider Ownership positions

There are presently around $3,530 million, or 90.70% of UMPQ stock, in the hands of institutional investors. The top three institutional holders of UMPQ stocks are: VANGUARD GROUP INC with ownership of 22,337,132, which is approximately 5.152% of the company’s market cap and around 0.90% of the total institutional ownership; BLACKROCK INC., holding 20,067,436 shares of the stock with an approximate value of $363.42 million in UMPQ stocks shares; and ATLANTA CAPITAL MANAGEMENT CO L L C, currently with $192.94 million in UMPQ stock with ownership of nearly -24.713% of the company’s market capitalization.

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Positions in Umpqua Holdings Corporation stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 161 institutional holders increased their position in Umpqua Holdings Corporation [NASDAQ:UMPQ] by around 17,911,978 shares. Additionally, 133 investors decreased positions by around 17,146,055 shares, while 53 investors held positions by with 159,860,929 shares. The mentioned changes placed institutional holdings at 194,918,962 shares, according to the latest SEC report filing. UMPQ stock had 52 new institutional investments in for a total of 3,369,029 shares, while 30 institutional investors sold positions of 982,486 shares during the same period.

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