A better buy-in window may exist right now for Bank OZK (OZK)

Bank OZK (NASDAQ: OZK) stock jumped 7.42% on Friday to $43.13 against a previous-day closing price of $40.15. With 2.28 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.85 million shares. During the session, the Banks – Regional company that operates in wider Financial sector, reached to the highest price of $43.27 whereas the lowest price it dropped to was $40.92. The 52-week range on OZK shows that it touched its highest point at $49.46 and its lowest point at $34.79 during that stretch. It currently has a 1-year price target of $48.14. With its current market cap of 5.17 billion, OZK has annualized dividend of $1.36 while the current yield stands at 3.15%. Beta for the stock currently stands at 1.37.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of OZK was up-trending over the past week, with a rise of 2.33%, but this was up by 9.94% over a month. Three-month performance dropped to -0.60% while six-month performance rose 9.25%. The stock lost -11.55% in the past year, while it has gained 7.66% so far this year. A look at the trailing 12-month EPS for OZK yields 4.37 with Next year EPS estimates of 5.38. For the next quarter, that number is 1.33. This implies an EPS growth rate of 98.10% for this year and -0.70% for next year. EPS is expected to grow by 12.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 11.60%.

Float and Shares Shorts:

At present, 128.71 million OZK shares are outstanding with a float of 120.93 million shares on hand for trading. On Oct 13, 2022, short shares totaled 4.39 million, which was 3.71% higher than short shares on Sep 14, 2022. In addition to Mr. George G. Gleason II as the firm’s Chairman & CEO, Mr. Paschall Brannon Hamblen serves as its Pres.

Institutional Ownership:

Through their ownership of 80.37% of OZK’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 51.93% of OZK, in contrast to 30.40% held by mutual funds. Shares owned by individuals account for 0.08%. As the largest shareholder in OZK with 10.44% of the stake, SSgA Funds Management, Inc. holds 12,694,232 shares worth 12,694,232. A second-largest stockholder of OZK, The Vanguard Group, Inc., holds 11,921,587 shares, controlling over 9.81% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in OZK, holding 9,201,011 shares or 7.57% stake. With a 4.64% stake in OZK, the SPDR S&P Dividend ETF is the largest stakeholder. A total of 5,642,480 shares are owned by the mutual fund manager. The iShares Core S&P Mid Cap ETF, which owns about 2.81% of OZK stock, is the second-largest Mutual Fund holder. It holds 3,415,200 shares valued at 136.81 million. Vanguard Total Stock Market Index holds 2.80% of the stake in OZK, owning 3,401,373 shares worth 136.26 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for OZK since 8 analysts follow the stock currently. There are 2 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 6 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With OZK analysts setting a high price target of $58.00 and a low target of $40.00, the average target price over the next 12 months is $48.14. Based on these targets, OZK could surge 34.48% to reach the target high and fall by -7.26% to reach the target low. Reaching the average price target will result in a growth of 11.62% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. OZK will report FY 2023 earnings on 01/18/2024. Analysts have provided yearly estimates in a range of $6.48 being high and $4.72 being low. For OZK, this leads to a yearly average estimate of $5.55. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Bank OZK surprised analysts by $0.01 when it reported $1.34 EPS against a consensus estimate of $1.32. The surprise factor in the prior quarter was -$0.09. Based on analyst estimates, the high estimate for the next quarter is $1.48 and the low estimate is $1.17. The average estimate for the next quarter is thus $1.36.

Dividends & Yield:

In terms of dividends, OZK has a current ratio of $1.36, which is $1.36 over the trailing 12-months, while a dividend of $1.0 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and OZK currently yields $3.01. In the past year, OZK’s dividend yield has been $3.01, but when looking at the stock over the past five years, its yield has been $2.98. Accordingly, OZK has a current buyback yield of $9.67. This was $9.67 for the TTM, and it was $1.61 for the past five years.

Summary of Insider Activity:

Insiders traded OZK stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has remained unchanged to 0 while that of sell transactions has remained unmoved to 0 over the past year. The total number of shares bought during that period was 0 while 0 shares were sold.

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