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

Cadence Bank (NYSE:CADE) gapped up prior to trading 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.

The company reported $0.62 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.54 by $0.08. The business had revenue of $437.69 million during the quarter, compared to the consensus estimate of $427.18 million. Cadence Bank had a return on equity of 9.22% and a net margin of 23.83%. The firm’s quarterly revenue was up 12.6% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.68 earnings per share.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on the company. Royal Bank of Canada reaffirmed a “sector perform” rating and set a $31.00 price objective on shares of Cadence Bank in a research report on Tuesday, April 9th. DA Davidson reaffirmed a “buy” rating on shares of Cadence Bank in a research note on Monday, January 15th. Keefe, Bruyette & Woods raised their price objective on Cadence Bank from $32.00 to $33.00 and gave the stock an “outperform” rating in a research note on Wednesday. Stephens reissued an “overweight” rating and set a $33.00 target price on shares of Cadence Bank in a research note on Tuesday. Finally, Citigroup lifted their target price on Cadence Bank from $27.00 to $32.00 and gave the company a “neutral” rating in a research note on Friday, December 29th. Five research analysts have rated the stock with a hold rating, six have issued a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat, Cadence Bank has an average rating of “Moderate Buy” and a consensus price target of $31.09.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Allspring Global Investments Holdings LLC increased its position in shares of Cadence Bank by 8.5% during the third quarter. Allspring Global Investments Holdings LLC now owns 6,697 shares of the company’s stock worth $142,000 after purchasing an additional 524 shares in the last quarter. Sheets Smith Wealth Management grew its holdings in shares of Cadence Bank by 3.8% in the 3rd quarter. Sheets Smith Wealth Management now owns 16,256 shares of the company’s stock worth $345,000 after acquiring an additional 589 shares during the period. AlphaMark Advisors LLC grew its holdings in shares of Cadence Bank by 6.8% in the 4th quarter. AlphaMark Advisors LLC now owns 11,482 shares of the company’s stock worth $340,000 after acquiring an additional 728 shares during the period. Retirement Systems of Alabama grew its holdings in Cadence Bank by 0.3% during the 4th quarter. Retirement Systems of Alabama now owns 228,778 shares of the company’s stock valued at $6,770,000 after buying an additional 754 shares during the last quarter. Finally, Arizona State Retirement System grew its holdings in Cadence Bank by 1.5% during the 3rd quarter. Arizona State Retirement System now owns 52,032 shares of the company’s stock valued at $1,104,000 after buying an additional 789 shares during the last quarter. 84.61% of the stock is currently owned by hedge funds and other institutional investors.

Cadence Bank Trading Up 1.7 %

The business has a fifty day simple moving average of $27.68 and a 200 day simple moving average of $26.53. The stock has a market cap of $5.36 billion, a price-to-earnings ratio of 9.38 and a beta of 1.02. The company has a debt-to-equity ratio of 0.09, a quick ratio of 0.85 and a current ratio of 0.86.

About Cadence Bank

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.