Back to top

Image: Bigstock

FB Financial (FBK) Rewards Investors With New Buyback Plan

Read MoreHide Full Article

FB Financial Corporation (FBK - Free Report) has announced a new share-repurchase plan, under which its board of directors has authorized a buyback of up to $100 million of the outstanding common stock. The company can repurchase shares until Mar 31, 2022.

The timing and amount of FB Financial’s common stock that are repurchased under this program will be gauged by management, based on its appraisal of market factors and other conditions. Such repurchases will likely be carried out either via open market operations or privately-negotiated transactions.

This new repurchase plan replaces the prior authorization, which expired on Dec 31, 2020. The company’s previous program was announced in October 2018, to repurchase up to $50 million, which was concluded on Oct 22, 2019.
In addition to share repurchases, FB Financial pays regular quarterly dividends. Notably, on Jan 29, 2021, the company announced a quarterly dividend of 11 cents per share, marking a hike of two cents from the previous payout. The dividend is payable on Feb 22, 2021 to shareholders of record as of Feb 8, 2021. Considering the last day’s closing price of $39.12 per share, the dividend yield currently stands at 1.12%.

FB Financial’s solid balance sheet and liquidity position keep it well poised to undertake capital-deployment activities. Markedly, the company remains debt free with substantial liquidity that includes cash and cash equivalents of $111 million, as of Dec 31, 2020.

Moreover, the company’s return on equity (ROE) supports its growth potential. Its ROE currently stands at 13.9%, higher than the industry average of 8.59%. This shows that it is more efficient than its peers in utilizing shareholders’ funds.

Shares of FB Financial have rallied 42.7% over the past six months, underperforming the industry’s growth of 49.4%.

 

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

Other Banks that Took Similar Actions

Over the past month, several banks have announced new share-repurchase programs. Some of these are Chemung Financial Corporation (CHMG - Free Report) , Ally Financial Inc. (ALLY - Free Report) and Prosperity Bancshares, Inc. (PB - Free Report) .

Chemung Financial’s board of directors authorized the repurchase of up to 250,000 shares. Ally Financial announced a new share-repurchase plan, under which it is authorized to repurchase up to 1.6 billion shares. Further, Prosperity Bancshares’ board of directors has approved buyback of up to 4.65 million shares.

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>>

Published in