LANCASTER, Pa. - Fulton Financial (NASDAQ:FULT) Corporation (NASDAQ: FULT), a Pennsylvania-based financial holding company, has initiated an underwritten public offering of its common stock. The company also plans to provide underwriters a 30-day option to purchase additional shares. This move is part of its strategy to bolster its general corporate funds following the acquisition of Republic First Bank (NASDAQ:FRBA)'s assets and liabilities.
Joint book-running managers for the offering are Piper Sandler and BofA Securities. The offering is contingent on a prospectus supplement and an accompanying base prospectus, as detailed in a registration statement on Form S-3 with the U.S. Securities and Exchange Commission (SEC).
Fulton Financial's recent expansion included the acquisition of substantially all assets and deposits and certain liabilities of Republic First Bank, operating as Republic Bank, from the Federal Deposit Insurance Corporation. The proceeds from the stock offering are intended to support new business opportunities in line with the company's strategic goals.
The securities offered have not received approval or disapproval from any regulatory authority, and the offering's legality is subject to registration or qualification under the relevant securities laws.
Fulton Financial Corporation operates over 200 financial centers across Pennsylvania, Maryland, Delaware, New Jersey, and Virginia through its subsidiary, Fulton Bank, N.A. The company's forward-looking statements, as disclosed in the press release, indicate plans and expectations for future business performance and strategies.
The information about the stock offering is based on a press release statement.
InvestingPro Insights
In light of Fulton Financial Corporation's (NASDAQ: FULT) recent public offering of common stock, key metrics from InvestingPro reveal a financial profile that may interest potential investors. With a robust Market Cap of $2.53 billion USD and a Price-to-Earnings (P/E) Ratio of 9.64, the company stands as a considerable entity in the financial sector. Notably, the adjusted P/E ratio over the last twelve months as of Q1 2024 has seen a slight decrease to 9.46, indicating a consistent valuation in the eyes of investors.
InvestingPro Tips highlight that Fulton Financial has a high shareholder yield and has revised earnings estimates upwards, as noted by 6 analysts for the upcoming period, reflecting a positive outlook on the company's financial future. Moreover, the company has a strong history of dividend payments, having maintained them for 43 consecutive years, with a current Dividend Yield of 4.35%. This consistent performance is a testament to the company's stability and commitment to shareholder returns.
While the company does face challenges with weak gross profit margins, analysts predict that Fulton Financial will remain profitable this year, a sentiment backed by its profitability over the last twelve months. Additionally, the company has experienced a significant price uptick of 28.31% over the last six months, which may indicate investor confidence in its growth trajectory.
For investors seeking a deeper dive into Fulton Financial's performance and prospects, InvestingPro offers a wealth of further insights and analysis. By using coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to an extensive range of InvestingPro Tips – there are 7 additional tips listed for Fulton Financial on https://www.investing.com/pro/FULT – that could help in making more informed investment decisions.
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