Back to top

Analyst Blog

In order to enhance shareholder value, Hancock Holding Company (HBHC - Analyst Report) has announced a new capital deployment plan. Apart from declaring a regular quarterly cash dividend, the company authorized a new share repurchase program.

Hancock’s board of directors authorized a buyback of up to 5% of common shares outstanding. As of Mar 31, 2013, the common shares outstanding were approximately 85 million.

Concurrently, Hancock announced a regular second quarter 2013 cash dividend of 24 cents per share. This dividend will be paid on Jun 14 to shareholders of record as of Jun 5.

Even through the financial crisis, when many large banks such as Bank of America Corporation (BAC - Analyst Report), Citigroup Inc. (C - Analyst Report) and JPMorgan Chase & Co. (JPM - Analyst Report) reduced their dividends, Hancock maintained the same dividend level of 24 cents per share. Notably, the company has consistently paid this dividend since the third quarter of 2006, which was increased by 9% from the second quarter.

Hancock has been meaningfully deployed cash. In 2011, the company completed the acquisition of Whitney Holding Corporation. This transaction added $11.7 billion in assets, $6.5 billion in loans and $9.2 billion in deposits to the company’s balance sheet. Moreover, the deal tremendously boosted its financial performance and improved market share as well.

We expect Hancock’s organic and inorganic growth strategies, coupled with a stable liquidity position to be strong catalysts. Moreover, steady capital position and enhanced capital deployment actions are anticipated to raise investors’ confidence in the stock. However, persistently rising operating expenses, a low rate environment and increased regulations are likely to marginally dent its performance in the near term.

Currently, Hancock carries a Zacks Rank #4 (Sell).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%