We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Enterprise Financial (EFSC) Announces New Share Buyback Plan
Read MoreHide Full Article
Enterprise Financial Services Corp (EFSC - Free Report) recently announced a new share repurchase program of up to 2,000,000 shares of common stock, representing approximately 5% of the company’s issued and outstanding shares as of Mar 31, 2022.
Per management, the new buyback plan reflects the strength of the company’s earnings trends, balance sheet and capital position. The company has returned more than $93 million to common shareholders through share repurchases since January 2021.
Prior to this, in April 2021, Enterprise Financial had authorized a repurchase plan of the same quantity. The company repurchased 351,090 shares, totaling $17.0 million in first-quarter 2022 for an average price of $48.35 per share, with 349,383 shares available for repurchase.
Further, in April 2022, Enterprise Financial increased its quarterly dividend by 5% to 22 cents per share. Based on last day’s closing price of $43.92, the company’s dividend yield currently stands at 2.00%. This yield is not only attractive for income investors, but also represents a steady income stream.
Enterprise Financial had total debt worth $434 million, substantially lower than its cash and cash equivalent balance of $2 billion, as of Mar 31, 2022. Moreover, its times-interest-earned ratio of 17.4 at the end of first-quarter 2022 has improved sequentially. EFSC’s net income witnessed an increase of $17.8 million in the first quarter of 2022 to $47.7 million, compared with the prior-year quarter.
Enterprise Financial is expected to continue with efficient capital deployment activities, given its earnings strength and decent liquidity position. Through this, it will keep enhancing shareholder value.
Over the past three months, shares of EFSC have lost 11.7% compared with 17.2% decline of the industry it belongs to.
Over the past few months, several companies have rewarded their shareholders with share buybacks. Some of these include Deutsche Bank AG’s (DB - Free Report) and Capital One (COF - Free Report) .
In April, Deutsche Bank successfully completed its €300-million share buyback program announced on Jan 26, 2022. DB has repurchased approximately 26.5 million shares from Mar 14 to Apr 22, 2022. Further, management has proposed dividends worth €400 million with respect to the 2021 financial year. Such share repurchases and dividend payments will result in a capital distribution of around €700 million for 2022.
Capital One has been meaningfully deploying capital to enhance shareholders’ value. In sync with this, the company announced additional share repurchase authorization worth $5 billion, effective from third-quarter 2022. The authorization is in addition to the $5-billion buyback plan for this year, which was announced in January. COF repurchased shares worth $7.5 million in 2021.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Shutterstock
Enterprise Financial (EFSC) Announces New Share Buyback Plan
Enterprise Financial Services Corp (EFSC - Free Report) recently announced a new share repurchase program of up to 2,000,000 shares of common stock, representing approximately 5% of the company’s issued and outstanding shares as of Mar 31, 2022.
Per management, the new buyback plan reflects the strength of the company’s earnings trends, balance sheet and capital position. The company has returned more than $93 million to common shareholders through share repurchases since January 2021.
Prior to this, in April 2021, Enterprise Financial had authorized a repurchase plan of the same quantity. The company repurchased 351,090 shares, totaling $17.0 million in first-quarter 2022 for an average price of $48.35 per share, with 349,383 shares available for repurchase.
Further, in April 2022, Enterprise Financial increased its quarterly dividend by 5% to 22 cents per share. Based on last day’s closing price of $43.92, the company’s dividend yield currently stands at 2.00%. This yield is not only attractive for income investors, but also represents a steady income stream.
Enterprise Financial had total debt worth $434 million, substantially lower than its cash and cash equivalent balance of $2 billion, as of Mar 31, 2022. Moreover, its times-interest-earned ratio of 17.4 at the end of first-quarter 2022 has improved sequentially. EFSC’s net income witnessed an increase of $17.8 million in the first quarter of 2022 to $47.7 million, compared with the prior-year quarter.
Enterprise Financial is expected to continue with efficient capital deployment activities, given its earnings strength and decent liquidity position. Through this, it will keep enhancing shareholder value.
Over the past three months, shares of EFSC have lost 11.7% compared with 17.2% decline of the industry it belongs to.
Image Source: Zacks Investment Research
Enterprise Financial currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Other Finance Stocks Taking Similar Steps
Over the past few months, several companies have rewarded their shareholders with share buybacks. Some of these include Deutsche Bank AG’s (DB - Free Report) and Capital One (COF - Free Report) .
In April, Deutsche Bank successfully completed its €300-million share buyback program announced on Jan 26, 2022. DB has repurchased approximately 26.5 million shares from Mar 14 to Apr 22, 2022. Further, management has proposed dividends worth €400 million with respect to the 2021 financial year. Such share repurchases and dividend payments will result in a capital distribution of around €700 million for 2022.
Capital One has been meaningfully deploying capital to enhance shareholders’ value. In sync with this, the company announced additional share repurchase authorization worth $5 billion, effective from third-quarter 2022. The authorization is in addition to the $5-billion buyback plan for this year, which was announced in January. COF repurchased shares worth $7.5 million in 2021.