Nordea Investment Management AB, a Swedish financial services organization, has recently reduced its stake in Cadence Bank (NYSE:CADE) by 28.6% during the second quarter of this year. As per the company’s 13F filing with the Securities and Exchange Commission, Nordea Investment Management AB now holds 123,439 shares of Cadence Bank after selling 49,470 shares in the given period. The value of these holdings is estimated to be around $2,458,000 at the end of the last reporting period.
Cadence Bank, an American financial institution headquartered in Houston, Texas, had its most recent quarterly earnings results released on July 25th. The reported earnings per share (EPS) for the quarter were $0.64. However, this fell short of analysts’ consensus estimates by ($0.04). Consequently, analysts lowered their expectations as they anticipated EPS to be around $0.68.
The figures indicate that Cadence Bank experienced a return on equity of 12.79%, demonstrating its ability to generate profits relative to shareholders’ investments. Moreover, it posted a net margin of 16.99%, indicating a significant portion of revenue converted into profit after accounting for all costs and expenses incurred by the bank.
Although Cadence Bank’s revenue for the quarter amounted to $465.84 million—a notable increase compared to the same quarter last year—it still fell short compared to analyst estimates of $476.12 million.
The business’s performance can be attributed to various factors such as market conditions and strategic decisions made by management. It is worth noting that during the same period last year, Cadence Bank earned an EPS of $0.73—highlighting a decline in profitability this year.
Despite missing estimates and modest revenue growth, sell-side analysts remain optimistic about Cadence Bank’s future potential based on various factors analyzed within their forecasts.
Looking ahead, sell-side analysts project that Cadence Bank will likely achieve an EPS of 2.49 for the current year. However, it is important to consider that these forecasts are based on research and analysis, and they may be subject to change depending on market fluctuations or other unforeseen circumstances.
Investors interested in Cadence Bank should monitor future updates and announcements closely as they hold implications for the company’s stock performance. Those considering investing in or divesting from Cadence Bank should exercise their due diligence by conducting thorough research and consulting with financial experts before making any decisions.
As of September 24, 2023, Nordea Investment Management AB has made adjustments to its portfolio holdings in Cadence Bank, signaling a reduction in its stake. This development suggests that the Swedish financial services organization has modified its investment strategy regarding the bank. Market participants will continue to watch for further changes as this could potentially indicate shifts in investor sentiment towards Cadence Bank’s stock.
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Institutional Investors Show Confidence in Cadence Bank’s Growth Potential
Institutional investors play a significant role in shaping the financial landscape by modifying their holdings in various companies. One such instance occurred with Cadence Bank, a prominent banking institution. Notably, the State of Wyoming recently purchased a new stake in shares of Cadence Bank during the fourth quarter, contributing to the company’s growth.
The acquisition made by the State of Wyoming is estimated to be worth approximately $25,000. This move highlights their confidence in Cadence Bank and suggests that they view it as a potentially lucrative investment opportunity. The State of Wyoming is recognized for its strategic investments and prudent financial decisions, so this decision adds further weight to its significance.
Additionally, Covestor Ltd has taken an active interest in Cadence Bank by increasing its holdings by an impressive 189.8% during the first quarter. Covestor Ltd now owns 2,455 shares of Cadence Bank’s stock valued at $72,000 after acquiring an additional 1,608 shares during this period. Such a dramatic increase in holdings demonstrates Covestor Ltd’s belief in the bank’s prospects for future success.
In line with this trend, Ronald Blue Trust Inc. increased its holdings in shares of Cadence Bank by 34.4% during the first quarter as well. They now own 3,097 shares valued at $77,000 after acquiring an additional 793 shares during that period. Ronald Blue Trust Inc.’s decision to expand its holdings indicates their confidence in Cadence Bank’s ability to generate favorable returns for investors.
Notably, Clear Street Markets LLC also acquired a new position in shares of Cadence Bank during the fourth quarter worth $89,000. This further underlines the growing interest among institutional investors concerning the potential gains that can be achieved through investing in Cadence Bank.
Lastly, Neo Ivy Capital Management joined these institutional investors and purchased a new position during the same period valued at $105,000. By doing so, they have expressed their belief in Cadence Bank’s ability to deliver substantial returns on investment.
Collectively, these investments made by various institutional investors demonstrate their recognition of the potential for growth and profitability that Cadence Bank offers. These investors now own a significant 80.22% stake in the company’s stock, underscoring their strong belief in its future prospects.
Turning our attention to the financial performance and current market situation of Cadence Bank, its shares opened at $20.86 on Friday. The company has a debt-to-equity ratio of 0.10 and a quick ratio as well as a current ratio both standing at 0.79. Cadence Bank has experienced fluctuations over the past year, with its lowest point reaching $16.95 and its highest at $29.41.
With regard to its market capitalization, Cadence Bank currently stands at $3.81 billion. It holds a price-to-earnings (P/E) ratio of 9.52 and operates with a beta of 1.02 – showcasing the bank’s responsiveness to market conditions compared to the overall market.
In terms of its recent financial decisions, Cadence Bank recently announced the declaration of a quarterly dividend that will be paid out on Monday, October 2nd. This dividend amounts to $0.235 per share for stockholders recorded on Friday, September 15th, with an ex-dividend date set for Thursday, September 14th. At an annualized basis, this represents a dividend payout ratio (DPR) of approximately 42.92%, offering shareholders an attractive dividend yield of 4.51%.
Various equity analysts have weighed in on the performance and prospects of Cadence Bank recently as well. Stephens increased their target price from $24 to $27 per share in their report published on Wednesday, July 26th – indicating positive sentiments regarding the bank’s future growth. Conversely, Truist Financial lowered their target price from $24 to $23 per share in a report released on Thursday, June 29th.
Finally, it is worth mentioning that TheStreet upgraded Cadence Bank’s rating from “c+” to “b-” in their report on Tuesday, August 8th. This upgrade signifies an improved outlook for the bank’s financial performance and further consolidates the notion of its potential as a lucrative investment opportunity.
Taking all these developments into account, Cadence Bank presents itself as an institution that has captured the attention and interest of institutional investors. With positive ratings and varying target prices from analysts, it has successfully positioned itself as a potential opportunity for those looking to invest in the banking sector. As September 2023 begins, time will tell whether these investments pay off and if Cadence Bank will fulfill its potential as a profitable entity within the financial industry.
