Bank of the Ozarks Inc. (OZRK) Raised to “Hold” at Zacks Investment Research
According to Zacks, “Estimates have been stable lately ahead of Bank of the Ozarks’ third-quarter 2016 earnings release. Notably, the company has a positive record of earnings surprises in recent quarters. Further, the company’s inorganic growth strategy should continue to help in revenue improvement. Also, consistent improvement in loans and deposits, and credit quality will likely help the company strengthen its financials. In addition, persistent increases in quarterly dividend continue to boost the investors’ confidence. However, operating expenses continue to rise as the company expands its footprints organically as well as through acquisitions. Further, increased exposure to risky real estate loans continues to pose a major concern. In addition, low interest rate environment is expected to continue exerting pressure on net interest margin in the near term.”
Several other equities research analysts have also recently issued reports on OZRK. Wells Fargo & Co. started coverage on Bank of the Ozarks in a research note on Thursday, June 23rd. They set a market perform rating for the company. Keefe, Bruyette & Woods reissued an outperform rating and set a $46.00 target price (down previously from $48.00) on shares of Bank of the Ozarks in a research note on Friday, June 24th. Raymond James Financial Inc. raised Bank of the Ozarks from a market perform rating to an outperform rating and set a $51.00 target price for the company in a research note on Thursday, August 25th. Finally, Rafferty Capital Markets initiated coverage on Bank of the Ozarks in a research report on Friday, September 16th. They set a buy rating and a $46.00 price target for the company. Two investment analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. The stock has an average rating of Buy and an average target price of $47.20.
Bank of the Ozarks (NASDAQ:OZRK) opened at 39.92 on Friday. The firm has a market capitalization of $4.83 billion, a price-to-earnings ratio of 17.59 and a beta of 1.32. Bank of the Ozarks has a 12 month low of $33.51 and a 12 month high of $54.96. The company’s 50-day moving average price is $38.83 and its 200 day moving average price is $38.82.
Bank of the Ozarks (NASDAQ:OZRK) last posted its earnings results on Tuesday, October 11th. The financial services provider reported $0.66 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.59 by $0.07. Bank of the Ozarks had a return on equity of 13.95% and a net margin of 35.99%. During the same quarter in the previous year, the business earned $0.54 earnings per share. Analysts predict that Bank of the Ozarks will post $2.44 EPS for the current year.
The business also recently announced a quarterly dividend, which will be paid on Friday, October 21st. Investors of record on Friday, October 14th will be issued a $0.165 dividend. The ex-dividend date is Wednesday, October 12th. This is a positive change from Bank of the Ozarks’s previous quarterly dividend of $0.16. This represents a $0.66 dividend on an annualized basis and a yield of 1.65%. Bank of the Ozarks’s dividend payout ratio (DPR) is 28.32%.
In related news, Director Walter J. Mullen III bought 1,120 shares of the firm’s stock in a transaction that occurred on Wednesday, August 10th. The stock was purchased at an average cost of $37.14 per share, for a total transaction of $41,596.80. Following the completion of the acquisition, the director now owns 3,775 shares in the company, valued at approximately $140,203.50. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Walter J. Mullen III bought 1,130 shares of the firm’s stock in a transaction that occurred on Tuesday, August 2nd. The stock was bought at an average price of $35.28 per share, with a total value of $39,866.40. Following the completion of the acquisition, the director now owns 2,650 shares of the company’s stock, valued at approximately $93,492. The disclosure for this purchase can be found here. 8.70% of the stock is owned by corporate insiders.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its position in Bank of the Ozarks by 2.6% in the second quarter. Vanguard Group Inc. now owns 6,593,667 shares of the financial services provider’s stock worth $247,394,000 after buying an additional 169,795 shares during the period. State Street Corp raised its position in Bank of the Ozarks by 11.9% in the second quarter. State Street Corp now owns 5,064,050 shares of the financial services provider’s stock worth $190,002,000 after buying an additional 537,768 shares during the period. BlackRock Fund Advisors raised its position in Bank of the Ozarks by 8.0% in the second quarter. BlackRock Fund Advisors now owns 4,271,017 shares of the financial services provider’s stock worth $160,249,000 after buying an additional 314,870 shares during the period. FMR LLC raised its position in Bank of the Ozarks by 2.7% in the second quarter. FMR LLC now owns 3,838,611 shares of the financial services provider’s stock worth $144,025,000 after buying an additional 102,659 shares during the period. Finally, Wellington Management Group LLP raised its position in Bank of the Ozarks by 19.6% in the first quarter. Wellington Management Group LLP now owns 3,170,393 shares of the financial services provider’s stock worth $133,061,000 after buying an additional 518,912 shares during the period. Hedge funds and other institutional investors own 71.41% of the company’s stock.
About Bank of the Ozarks
Bank of the Ozarks, Inc is a bank holding company. The Company owns an Arkansas state chartered subsidiary bank, Bank of the Ozarks (the Bank). The Company, through the Bank, conducts operations through approximately 257 offices, including over 80 offices in Arkansas, approximately 30 in Georgia, over 20 in North Carolina, over 20 in Texas, approximately 44 in Florida, over three in Alabama, approximately two each in South Carolina and New York, and one in California.
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