“BXS reported a positive start to the year, albeit with a number of moving parts, including the acquisition of Houston-based Icon Capital Corporation (~$800M in assets). For Q1, we calculate an operating EPS of $0.56 vs. Brean/consensus of $0.53/$0.52; however, excluding a positive $5.5M MSR valuation adjustment, we estimate an operating EPS of $0.52. We note there were a number of moving parts in the quarter, including an accounting change on insurance revenues and a forgery/theft loss that were offset by a lower-than-expected tax rate and elevated share repurchase activity. Q1 also included the closings of Central Community and Ouachita, which provided some noise. Overall, we view the quarter as a positive start to the year, highlighted by core NIM expansion, modest loan growth and strong credit results. In addition, the Icon Capital deal appears favorable (both financially and strategically) and could provide a positive catalyst to the shares. We expect questions around the Icon deal, operating expenses, deposit betas (BXS’ costs remain contained) and future growth prospects (previous commentary suggested mid-high single-digit organic loan growth). YTD, the shares have modestly underperformed the BANK at -2% vs. +1%, while the forward EPS multiple is in-line with peers at ~13.0x.”,” the firm’s analyst wrote.
Several other equities research analysts have also issued reports on the company. Stephens reissued a buy rating and set a $39.00 price target on shares of BancorpSouth Bank in a research report on Friday, January 26th. Zacks Investment Research lowered BancorpSouth Bank from a hold rating to a sell rating in a research report on Tuesday, December 26th. ValuEngine lowered BancorpSouth Bank from a buy rating to a hold rating in a research report on Monday, April 2nd. Finally, Piper Jaffray reissued a hold rating and set a $35.00 price target on shares of BancorpSouth Bank in a research report on Tuesday, January 9th. Two research analysts have rated the stock with a sell rating, eight have issued a hold rating and one has given a buy rating to the company. BancorpSouth Bank has a consensus rating of Hold and an average target price of $34.13.
BancorpSouth Bank (NYSE:BXS) last posted its quarterly earnings results on Wednesday, April 18th. The bank reported $0.54 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.52 by $0.02. The business had revenue of $217.01 million for the quarter, compared to analyst estimates of $210.65 million. BancorpSouth Bank had a return on equity of 9.01% and a net margin of 19.59%. During the same period in the prior year, the company posted $0.39 EPS. sell-side analysts expect that BancorpSouth Bank will post 2.16 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which was paid on Monday, April 2nd. Investors of record on Thursday, March 15th were given a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a dividend yield of 1.72%. The ex-dividend date was Wednesday, March 14th. BancorpSouth Bank’s dividend payout ratio is currently 33.53%.
A number of institutional investors and hedge funds have recently modified their holdings of the stock. Zurcher Kantonalbank Zurich Cantonalbank grew its stake in BancorpSouth Bank by 39.9% during the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 5,375 shares of the bank’s stock worth $169,000 after buying an additional 1,534 shares during the last quarter. Nisa Investment Advisors LLC grew its stake in BancorpSouth Bank by 8.3% during the 4th quarter. Nisa Investment Advisors LLC now owns 26,140 shares of the bank’s stock worth $822,000 after buying an additional 2,000 shares during the last quarter. Paloma Partners Management Co grew its stake in BancorpSouth Bank by 9.1% during the 4th quarter. Paloma Partners Management Co now owns 25,511 shares of the bank’s stock worth $802,000 after buying an additional 2,128 shares during the last quarter. New York State Common Retirement Fund grew its stake in BancorpSouth Bank by 2.4% during the 3rd quarter. New York State Common Retirement Fund now owns 115,978 shares of the bank’s stock worth $3,717,000 after buying an additional 2,700 shares during the last quarter. Finally, Profund Advisors LLC grew its stake in BancorpSouth Bank by 22.7% during the 4th quarter. Profund Advisors LLC now owns 15,374 shares of the bank’s stock worth $484,000 after buying an additional 2,840 shares during the last quarter. Hedge funds and other institutional investors own 66.83% of the company’s stock.
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About BancorpSouth Bank
BancorpSouth Bank operates as a financial holding company for BancorpSouth Bank that provides commercial banking and financial services to individuals and small-to-medium size businesses. It offers various deposit products, including interest and noninterest bearing demand deposits, and saving and other time deposits.
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