Cadence Bancorporation (NYSE:CADE) shares soared to a 52-week high, reaching a price level of $34.17. This peak reflects a significant surge in investor confidence and market performance for the regional bank holding company. Over the past year, Cadence Bancorporation has witnessed an impressive 72.93% increase in its stock value, indicating robust growth and a positive response from the market to the company's strategic initiatives and financial results. Investors and analysts are closely monitoring CADE's momentum to see if it can sustain these gains in the coming months.
In other recent news, Cadence Bancorp reported Q3 earnings that exceeded analyst expectations, with an adjusted earnings per share of $0.73, outpacing the consensus estimate of $0.64. However, its revenue of $447.4 million was slightly below the anticipated $450.97 million. This financial update was underscored by Piper Sandler's maintenance of a Neutral rating on Cadence Bancorp, noting that the bank's core earnings per share of $0.74 surpassed estimates, largely due to lower than expected provision expenses.
The bank's net interest margin increased by 4 basis points to 3.31%, attributed to a steady cost of deposits and an uptick in loan yields. However, average earning assets saw a decline of approximately 2.8% from the previous quarter. Non-performing loans increased slightly, while net charge-offs and loan loss reserves saw minor reductions.
In other developments, Cadence Bancorp's total deposits experienced significant growth in Q3, surging by $985.7 million to reach $38.8 billion. The bank also reported stable credit quality metrics, with net charge-offs of 0.26% of average loans, marking a slight decrease from the previous quarter. These are the recent developments to keep in mind for Cadence Bancorp.
InvestingPro Insights
Cadence Bancorporation's (CADE) recent surge to a 52-week high is supported by several key financial metrics and trends identified by InvestingPro. The stock's impressive 68.82% total return over the past year aligns closely with the article's reported 72.93% increase, confirming the strong market performance. Currently trading at 98.89% of its 52-week high, CADE's momentum remains strong.
InvestingPro Tips highlight that CADE has maintained dividend payments for 40 consecutive years and has raised its dividend for 11 consecutive years, showcasing the company's commitment to shareholder returns. This consistency in dividend policy may be contributing to investor confidence and the stock's recent performance.
The company's Price to Book ratio of 1.2 suggests that the stock might still be reasonably valued despite its recent gains. Additionally, with a dividend yield of 3.08%, CADE offers an attractive income proposition for investors seeking steady returns.
For readers interested in a deeper analysis, InvestingPro offers 11 additional tips for Cadence Bancorporation, providing a more comprehensive view of the company's financial health and market position.
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