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Randolph Bancorp, Inc. (RNDB) Stock Jumps 24.8%: Will It Continue to Soar?

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Randolph Bancorp, Inc. shares ended the last trading session 24.8% higher at $26.44. 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 3.1% gain over the past four weeks.

The announcement of the merger deal probably drove the rise. Randolph, the holding company for Envision Bank, entered an agreement to be acquired by Hometown Financial Group, Inc. Hometown Financial is the multi-bank holding company for bankESB, bankHometown and Abington Bank. Closing of the merger, expected in fourth-quarter 2022, is subject to the receipt of required regulatory approvals, shareholder approval, and other standard conditions.

Per the deal, Envision Bank will merge with and into Abington Bank, leading to the creation of a $1.4 billion bank with 11 full-service retail locations. According to the terms of the merger agreement, shareholders of Randolph will get $27.00 in cash for each of their shares held. The total deal value is $146.5 million.

This company is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of -78.5%. Revenues are expected to be $9.7 million, down 44.6% 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 Randolph Bancorp, Inc., 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 RNDB going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Randolph Bancorp, Inc. belongs to the Zacks Banks - Northeast industry. Another stock from the same industry, CF Bankshares Inc. (CFBK - Free Report) , closed the last trading session 0.8% lower at $21.57. Over the past month, CFBK has returned 1%.

CF Bankshares Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.73. Compared to the company's year-ago EPS, this represents a change of -24%. CF Bankshares Inc. currently boasts a Zacks Rank of #1 (Strong Buy).


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