Top investors say Signature Bank (SBNY) ticks everything they need

Signature Bank (NASDAQ: SBNY) stock jumped 7.47% on Friday to $127.79 against a previous-day closing price of $118.91. With 1.69 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.21 million shares. During the session, the Banks – Regional company that operates in wider Financial sector, reached to the highest price of $128.68 whereas the lowest price it dropped to was $120.06. The 52-week range on SBNY shows that it touched its highest point at $355.59 and its lowest point at $106.81 during that stretch. It currently has a 1-year price target of $152.33. With its current market cap of 7.48 billion, SBNY has annualized dividend of $2.80 while the current yield stands at 2.19%. Beta for the stock currently stands at 1.63.

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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 SBNY was up-trending over the past week, with a rise of 9.18%, but this was up by 12.10% over a month. Three-month performance dropped to -16.09% while six-month performance fell -29.62%. The stock lost -63.64% in the past year, while it has gained 10.91% so far this year. A look at the trailing 12-month EPS for SBNY yields 18.78 with Next year EPS estimates of 15.92. For the next quarter, that number is 3.91. This implies an EPS growth rate of 51.20% for this year and 8.62% for next year. EPS is expected to grow by 6.32% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 15.40%.

Float and Shares Shorts:

At present, 62.44 million SBNY shares are outstanding with a float of 61.82 million shares on hand for trading. On Oct 13, 2022, short shares totaled 1.43 million, which was 2.27% higher than short shares on Sep 14, 2022. In addition to Mr. Scott Aaron Shay as the firm’s Co-Founder & Exec. Chairman, Mr. Joseph John DePaolo serves as its Co-Founder, Pres, CEO & Director.

Institutional Ownership:

Through their ownership of 97.17% of SBNY’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 63.52% of SBNY, in contrast to 31.60% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in SBNY with 10.99% of the stake, The Vanguard Group, Inc. holds 6,916,475 shares worth 6,916,475. A second-largest stockholder of SBNY, T. Rowe Price Associates, Inc., holds 3,774,859 shares, controlling over 6.00% of the firm’s shares. Capital Research & Management Co is the third largest shareholder in SBNY, holding 3,715,162 shares or 5.90% stake. With a 4.16% stake in SBNY, the Alecta Pension is the largest stakeholder. A total of 2,617,270 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 3.05% of SBNY stock, is the second-largest Mutual Fund holder. It holds 1,916,098 shares valued at 220.77 million. American Funds Fundamental Invest holds 2.64% of the stake in SBNY, owning 1,658,466 shares worth 191.09 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SBNY since 18 analysts follow the stock currently. There are 10 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 7 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 SBNY analysts setting a high price target of $214.00 and a low target of $112.00, the average target price over the next 12 months is $149.81. Based on these targets, SBNY could surge 67.46% to reach the target high and fall by -12.36% to reach the target low. Reaching the average price target will result in a growth of 17.23% 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. SBNY will report FY 2023 earnings on 01/18/2024. Analysts have provided yearly estimates in a range of $15.74 being high and $12.35 being low. For SBNY, this leads to a yearly average estimate of $14.71. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Signature Bank surprised analysts by -$0.18 when it reported $4.65 EPS against a consensus estimate of $4.83. The surprise factor in the prior quarter was $0.16. Based on analyst estimates, the high estimate for the next quarter is $4.14 and the low estimate is $3.39. The average estimate for the next quarter is thus $3.90.

Dividends & Yield:

In terms of dividends, SBNY has a current ratio of $2.8, which is $2.8 over the trailing 12-months, while a dividend of $2.05 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and SBNY currently yields $1.75. In the past year, SBNY’s dividend yield has been $1.75, but when looking at the stock over the past five years, its yield has been $1.41. Accordingly, SBNY has a current buyback yield of $0.35. This was $0.35 for the TTM.

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