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Howard Bancorp (HBMD) Surges 26.7%: Is This an Indication of Further Gains?
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Howard Bancorp shares rallied 26.7% in the last trading session to close at $19.79. 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 5.7% loss over the past four weeks.
Howard Bancorp touched a new 52-week high of $20.42 in last day’s trading session. The announcement of the all-stock merger deal with F.N.B. Corporation (FNB - Free Report) drove the stock higher.
Per the deal, which is expected to be completed in early 2022, F.N.B. Corporation will acquire Howard Bancorp for $418 million. The acquisition is expected to be 4% accretive to F.N.B. Corporation’s earnings per share. Howard Bancorp’s shareholders will likely get 1.8 shares of F.N.B. Corporation’s common stock for each of their own shares held. Notably, the transaction will likely be qualified as a tax-free exchange for Howard Bancorp’s shareholders.
This bank holding company is expected to post quarterly earnings of $0.33 per share in its upcoming report, which represents a year-over-year change of +65%. Revenues are expected to be $21.5 million, down 6% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Howard Bancorp, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on HBMD going forward to see if this recent jump can turn into more strength down the road.
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Howard Bancorp (HBMD) Surges 26.7%: Is This an Indication of Further Gains?
Howard Bancorp shares rallied 26.7% in the last trading session to close at $19.79. 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 5.7% loss over the past four weeks.
Howard Bancorp touched a new 52-week high of $20.42 in last day’s trading session. The announcement of the all-stock merger deal with F.N.B. Corporation (FNB - Free Report) drove the stock higher.
Per the deal, which is expected to be completed in early 2022, F.N.B. Corporation will acquire Howard Bancorp for $418 million. The acquisition is expected to be 4% accretive to F.N.B. Corporation’s earnings per share. Howard Bancorp’s shareholders will likely get 1.8 shares of F.N.B. Corporation’s common stock for each of their own shares held. Notably, the transaction will likely be qualified as a tax-free exchange for Howard Bancorp’s shareholders.
This bank holding company is expected to post quarterly earnings of $0.33 per share in its upcoming report, which represents a year-over-year change of +65%. Revenues are expected to be $21.5 million, down 6% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Howard Bancorp, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on HBMD 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 >>>>