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Select Bancorp (SLCT) Stock Jumps 18.7%: Will It Continue to Soar?
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Select Bancorp shares ended the last trading session 18.7% higher at $17. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 20.1% gain over the past four weeks.
Select Bancorp extended its rally for the second consequent day and touched a new 52-week high of $17.23. Investor optimism stemmed from announcement of the company’s merger deal with First Bank (FBNC - Free Report) .
The all-stock transaction, expected to close in the fourth quarter of 2021, is valued at nearly $314.3 million or $18.10 per share. The deal has been already been approved by the board of directors of both companies. Yet, it still requires regulatory approval and consents from both companies’ shareholders.
With 22 banking locations in North Carolina, South Carolina, and Virginia, the deal is expected to complement First Bank’s existing footprint, and help it compete in several new markets. Following the closure, the combined entity will have more than $9 billion in total assets, $6 billion in loans and $8 billion in deposits.
Notably, as Select Bancorp shoot up to end the last trading session at $17, which is lower than what First Bank has offered, there is a still some upside left in the stock.
Price and Consensus
This bank holding company is expected to post quarterly earnings of $0.30 per share in its upcoming report, which represents a year-over-year change of +650%. Revenues are expected to be $17.6 million, up 32.6% 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 Select Bancorp, the consensus EPS estimate for the quarter has been revised 20% 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 SLCT going forward to see if this recent jump can turn into more strength down the road.
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Select Bancorp (SLCT) Stock Jumps 18.7%: Will It Continue to Soar?
Select Bancorp shares ended the last trading session 18.7% higher at $17. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 20.1% gain over the past four weeks.
Select Bancorp extended its rally for the second consequent day and touched a new 52-week high of $17.23. Investor optimism stemmed from announcement of the company’s merger deal with First Bank (FBNC - Free Report) .
The all-stock transaction, expected to close in the fourth quarter of 2021, is valued at nearly $314.3 million or $18.10 per share. The deal has been already been approved by the board of directors of both companies. Yet, it still requires regulatory approval and consents from both companies’ shareholders.
With 22 banking locations in North Carolina, South Carolina, and Virginia, the deal is expected to complement First Bank’s existing footprint, and help it compete in several new markets. Following the closure, the combined entity will have more than $9 billion in total assets, $6 billion in loans and $8 billion in deposits.
Notably, as Select Bancorp shoot up to end the last trading session at $17, which is lower than what First Bank has offered, there is a still some upside left in the stock.
Price and Consensus
This bank holding company is expected to post quarterly earnings of $0.30 per share in its upcoming report, which represents a year-over-year change of +650%. Revenues are expected to be $17.6 million, up 32.6% 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 Select Bancorp, the consensus EPS estimate for the quarter has been revised 20% 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 SLCT going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>