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Altabancorp (ALTA) Soars 10%: Is Further Upside Left in the Stock?

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Altabancorp shares rallied 10% in the last trading session to close at $46.84. 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 1% loss over the past four weeks.

Altabancorp touched a new 52-week high of $47.80 during the second half of trading session. The impressive rally was driven by the announcement of merger agreement between Glacier Bancorp, Inc. (GBCI - Free Report) and Altabancorp. The all-stock deal, expected to close in the fourth quarter 2021 and still subject to regulatory approval, is valued at $933.5 million.

Per the terms of the deal, shareholders of Altabancorp will get 0.7971 share of Glacier Bancorp for each share of Altabancorp. As of Mar 31, 2021, Altabancorp had total assets of $3.5 billion, deposits of $3.2 billion and loans of $1.8 billion. After the conclusion of the deal, Altabancorp will become Glacier Bancorp’s 17th bank division, and operate under its existing name.

Price and Consensus

Price Consensus Chart for ALTA

This bank holding company is expected to post quarterly earnings of $0.54 per share in its upcoming report, which represents a year-over-year change of -1.8%. Revenues are expected to be $30.26 million, down 5.2% 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 Altabancorp, the consensus EPS estimate for the quarter has been revised 7.1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on ALTA going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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