Back to top

Image: Bigstock

OP Bancorp Rewards Shareholders With Additional Buybacks

Read MoreHide Full Article

OP Bancorp OPBK recently announced a new share-repurchase plan. The board of directors has approved the repurchase of about 500,000 shares of the company’s common stock.

The latest plan comes a few months after OP Bancorp’s previously-concluded share-buyback program. The company’s previous program was announced this February and was completed on May 1, 2020. This program included the repurchase of about 500,000 shares at an average price of $7.77 per share.

Min Kim, president and chief executive officer of OP Bancorp and Open Bank said, "We believe that the Company’s stock is undervalued relative to our solid fundamentals, and this additional repurchase program will demonstrate the Company’s confidence in the stock to the market."

The company announced its first share-repurchase program last January. Since then, the company has repurchased 1.37 million shares at an average price of $8.84 per share.

Additionally, OP Bancorp has been paying regular quarterly dividends. Notably, the company hiked its common stock quarterly dividend in February 2020 by 40%.

As of Jun 30, 2020, the company had a total debt of $10.13 million, lower than the cash and cash equivalents balance of $86.04 million. Also, its total debt to total capital of 12.17% is lower than the industry average of 26.16%. Thus, given the strong balance sheet, the company will likely be able to sustain the current level of capital-deployment activities.

Over the past year, shares of OP Bancorp have depreciated 35.9% compared with the 22.3% decline of the industry it belongs to.

Currently, OP Bancorp carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A few other finance stocks that have announced new/additional buyback authorizations in 2020 include MVB Financial (MVBF - Free Report) , PennyMac Financial (PFSI - Free Report) and Jefferies Financial (JEF - Free Report) .

MVB Financial announced repurchase up to $5 million worth of outstanding common stock. PennyMac Financial repurchased 6.9 million shares at a price of $34 per share from The BlackRock Foundation, the charitable arm of BlackRock, Inc. in June. Jefferies Financial increased its buyback program to $250 million in January, while in March the company authorized an additional share repurchase of $100 million.

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>

In-Depth Zacks Research for the Tickers Above

Choose a ticker to receive a FREE report - normally $25 each:

Jefferies Financial Group Inc. (JEF) - free report >>

PennyMac Financial Services, Inc. (PFSI) - free report >>

Mvb Financial Corp. (MVBF) - free report >>