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If You Invested $1000 in Regions Financial 10 Years Ago, This Is How Much You'd Have Now
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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Regions Financial (RF - Free Report) ten years ago? It may not have been easy to hold on to RF for all that time, but if you did, how much would your investment be worth today?
Regions Financial's Business In-Depth
With that in mind, let's take a look at Regions Financial's main business drivers.
Regions Financial Corporation is a Birmingham, AL-based financial holding company, providing retail and commercial banking, trust, securities brokerage, insurance brokerage, mortgage and insurance products and services. As of Jun 30, 2021, Regions Financial operated 1,313 banking offices and 2,000 ATMs across a 16-state network over the South, Midwest and Texas.
The company has five business segments.
The Corporate Bank (44% of total average assets as of Dec 31, 2020) segment includes the company’s commercial banking functions including commercial and industrial, commercial real estate, investor real estate lending and equipment lease financing.
The Consumer Bank (25%) segment comprises the company’s branch network, including consumer banking products and services as well as the corresponding deposit relationships.
The Wealth Management (2%) segment consists of wealth management products and services. This segment provides services such as investment advice, assistance in managing assets and estate planning to individuals and institutional clients.
Other (29%) includes the company’s treasury function, the securities portfolio, wholesale funding activities, interest rate risk management activities and other corporate functions that are not related to a strategic business unit.
Notably, another segment – Discontinued Operations constitutes all brokerage and investment activities associated with Morgan Keegan, which was sold in April 2012 and the sale of Regions Insurance Group, Inc. and related affiliates, which closed on Jul 2, 2018.
In April 2020, the company acquired equipment finance lender, Ascentium Capital LLC, from Warburg Pincus. Also, in August 2019, Regions Financial closed acquisition of Highland Associates — a leading institutional investment firm. In July 2018, it completed the divesture of Regions Insurance Group to BB&T Insurance Holdings — a wholly owned subsidiary of BB&T Corporation.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Regions Financial a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in August 2011 would be worth $4,582.22, or a 358.22% gain, as of August 12, 2021. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 279.29% and the price of gold increased -3.51% over the same time frame in comparison.
Analysts are anticipating more upside for RF.
Shares of Regions Financial have outperformed the industry over the past year. Further, the company has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in all of the trailing four quarters. The second-quarter results reflected higher revenues and lower expenses. Favorable funding mix and attractive core businesses are likely to aid its profitability in the quarters ahead. Besides its inorganic growth strategies, the Simplify and Grow initiatives to streamline structure and branches act as tailwind. Decent loan growth is likely to support interest income in the quarters ahead. However, pressure on margin due to low rates is likely to hamper top-line growth. Regions Financial’s significant exposure to commercial loans and unsustainable capital-deployment activities keep us apprehensive in the near term.
The stock has jumped 5.74% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 11 higher, for fiscal 2021; the consensus estimate has moved up as well.
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If You Invested $1000 in Regions Financial 10 Years Ago, This Is How Much You'd Have Now
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Regions Financial (RF - Free Report) ten years ago? It may not have been easy to hold on to RF for all that time, but if you did, how much would your investment be worth today?
Regions Financial's Business In-Depth
With that in mind, let's take a look at Regions Financial's main business drivers.
Regions Financial Corporation is a Birmingham, AL-based financial holding company, providing retail and commercial banking, trust, securities brokerage, insurance brokerage, mortgage and insurance products and services. As of Jun 30, 2021, Regions Financial operated 1,313 banking offices and 2,000 ATMs across a 16-state network over the South, Midwest and Texas.
The company has five business segments.
The Corporate Bank (44% of total average assets as of Dec 31, 2020) segment includes the company’s commercial banking functions including commercial and industrial, commercial real estate, investor real estate lending and equipment lease financing.
The Consumer Bank (25%) segment comprises the company’s branch network, including consumer banking products and services as well as the corresponding deposit relationships.
The Wealth Management (2%) segment consists of wealth management products and services. This segment provides services such as investment advice, assistance in managing assets and estate planning to individuals and institutional clients.
Other (29%) includes the company’s treasury function, the securities portfolio, wholesale funding activities, interest rate risk management activities and other corporate functions that are not related to a strategic business unit.
Notably, another segment – Discontinued Operations constitutes all brokerage and investment activities associated with Morgan Keegan, which was sold in April 2012 and the sale of Regions Insurance Group, Inc. and related affiliates, which closed on Jul 2, 2018.
In April 2020, the company acquired equipment finance lender, Ascentium Capital LLC, from Warburg Pincus. Also, in August 2019, Regions Financial closed acquisition of Highland Associates — a leading institutional investment firm. In July 2018, it completed the divesture of Regions Insurance Group to BB&T Insurance Holdings — a wholly owned subsidiary of BB&T Corporation.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Regions Financial a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in August 2011 would be worth $4,582.22, or a 358.22% gain, as of August 12, 2021. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 279.29% and the price of gold increased -3.51% over the same time frame in comparison.
Analysts are anticipating more upside for RF.
Shares of Regions Financial have outperformed the industry over the past year. Further, the company has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in all of the trailing four quarters. The second-quarter results reflected higher revenues and lower expenses. Favorable funding mix and attractive core businesses are likely to aid its profitability in the quarters ahead. Besides its inorganic growth strategies, the Simplify and Grow initiatives to streamline structure and branches act as tailwind. Decent loan growth is likely to support interest income in the quarters ahead. However, pressure on margin due to low rates is likely to hamper top-line growth. Regions Financial’s significant exposure to commercial loans and unsustainable capital-deployment activities keep us apprehensive in the near term.
The stock has jumped 5.74% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 11 higher, for fiscal 2021; the consensus estimate has moved up as well.