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Zions (ZION) Announces Additional $200M Share Buyback for Q3

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Zions Bancorporation (ZION - Free Report) announced that its board of directors authorized additional share repurchases worth up to $200 million for the third quarter of this year. Notably, in July, the company announced third-quarter repurchase authorization worth up to $125 million.

Thus, now, the total buyback authorization for the third quarter is $325 million or 3.5% of the company’s current market capitalization.

As of Aug 24, 2021, Zions repurchased shares worth $98 million as part of its third-quarter buyback authorization.

The company has an efficient capital deployment plan in place. In addition to share repurchases, it pays regular quarterly dividends.

In fact, last month, it announced a quarterly cash dividend of 38 cents per share, representing a hike of 11.7% from the prior payout. The dividend was paid out on Aug 19 to shareholders of record as of Aug 12.

Considering yesterday’s closing price of $55.75 per share, the company’s dividend yield currently stands at 2.73%.

Supported by a robust capital position and lower dividend payout ratio compared with peers, Zions is expected to sustain efficient capital deployment activities in the future, thereby, continuing to enhance shareholder value.

So far this year, shares of Zions have rallied 28.3% compared with 34.6% growth recorded by the industry it belongs to.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

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

Capital Deployment Activities by Other Finance Companies

In the past few months, several firms have announced new share-repurchase programs.

A couple of days ago, Civista Bancshares, Inc. (CIVB - Free Report) announced a share-repurchase plan to buy back up to an aggregate $13.5 million of its outstanding shares. The plan will expire on Aug 10, 2022.

Likewise, PNC Financial (PNC - Free Report) said that its board of directors authorized the repurchase of up to $2.9 billion worth of its common stock for the four-quarter period beginning in the third quarter of 2021.

Huntington Bancshares Incorporated’s (HBAN - Free Report) board authorized an $800-million share repurchase program for the four quarters beginning July 2021.