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Strength Seen in Metropolitan Bank Holding Corp. (MCB): Can Its 5.9% Jump Turn into More Strength?

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Metropolitan Bank Holding Corp. (MCB - Free Report) shares rallied 5.9% in the last trading session to close at $79.59. 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 0.7% loss over the past four weeks.

Metropolitan Bank has launched an underwritten public offering of $150 million worth of shares. The company announced the pricing of the offering at $75.00 per share. Also, it has granted the underwriters a 30-day option to purchase up to an additional 300,000 shares of common stock. The bank plans to use the net proceeds from the offering for general corporate purposes, which may include funding the repayment or redemption of outstanding debt, share repurchases, investments in the bank, as regulatory capital or otherwise, ongoing operations, interest and dividend payments and possible acquisitions of businesses or assets.

This company is expected to post quarterly earnings of $1.65 per share in its upcoming report, which represents a year-over-year change of +29.9%. Revenues are expected to be $44.5 million, up 23.8% 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 Metropolitan Bank Holding Corp., 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 MCB 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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