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Macatawa (MCBC) Moves 37.7% Higher: Will This Strength Last?
Macatawa Bank (MCBC - Free Report) shares rallied 37.7% in the last trading session to close at $13.67. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 6.7% gain over the past four weeks.
Shares of Macatawa Bank rallied for the fourth straight day. The last day’s huge rally was driven by the announcement of an all-stock deal by Wintrust Financial Corporation (WTFC - Free Report) to acquire Macatawa Bank.
As part of the transaction, MCBC shareholders will receive $14.85 for each outstanding share they own. This makes the deal value to be approximately $510 million. The deal is expected to close in the second half of 2024.
This holding company for Macatawa Bank is expected to post quarterly earnings of $0.30 per share in its upcoming report, which represents a year-over-year change of -14.3%. Revenues are expected to be $26.1 million, down 3.8% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Macatawa, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on MCBC going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Macatawa belongs to the Zacks Banks - Midwest industry. Another stock from the same industry, Independent Bank (IBCP - Free Report) , closed the last trading session 0.5% higher at $23.25. Over the past month, IBCP has returned -1.6%.
For Independent Bank, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.65. This represents a change of +6.6% from what the company reported a year ago. Independent Bank currently has a Zacks Rank of #3 (Hold).