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Triumph Bancorp (TBK) Up on Additional Share Buyback Program
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Triumph Bancorp, Inc. has been actively boosting shareholders’ value on the back of share repurchases. Recently, the company completed its $50-million stock buyback program and authorized a new one for the purchase of up to $75 million of the company’s common stock.
Likely reflecting this news, shares of TBK rallied 6.5% in yesterday’s trading session.
The recently completed program was initiated on Feb 7, 2022. Since then, TBK has repurchased 709,795 shares of its common stock at an average price of $70.41 per share.
Also, the new $75-million share repurchase plan is valid for a period of up to a year.
Since the company does not have a history of dividend payments, capital deployments on the back of such encouraging share buybacks are likely to drive investor confidence in the stock.
As of Mar 31, 2022, it had cash and cash equivalents of $413.7 million, up from $383.2 million as of Dec 31, 2021. As of the same date, long-term debt of $41 million declined from $68 million as of Dec 31, 2021.
As of the first-quarter end, TBK had total assets of $6.08 billion, total loans held for investment of $4.72 billion and total deposits of $4.33 billion.
Also, the company’s debt/equity ratio of 0.05 is lower than the industry average of 0.13. This highlights that TBK is better positioned than its peers. The company will be financially stable, even in adverse economic conditions.
Hence, the company’s repurchase activities seem sustainable.
However, weakness in its near-term earningsis concerning. Over the last three to five years, TBK recorded earnings growth of 24.5%. However, in the ongoing year, the company’s earnings are projected to decline 9.9%.
The company’s shares have lost 42.9% so far this year compared with a 12.1% decline recorded by the industry.
Image Source: Zacks Investment Research
It carries a Zacks Rank #5 (Strong Sell) at present.
Piper Sandler Companies’ (PIPR - Free Report) board of directors approved the repurchase of up to $150 million worth of PIPR’s outstanding stock.
The buyback program, which is effective immediately and will expire on Dec 31, 2024, is in addition to the existing authorization. The current plan, announced in November 2021, became effective on Jan 1, 2022, and expires on Dec 31, 2023. Under this, PIPR is authorized to repurchase up to $150 million worth of shares and has roughly $43 million remaining as of May 6, 2022.
Capital One (COF - Free Report) 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 this January. COF repurchased shares worth $7.5 million in 2021.
Virtus Investment Partners, Inc. (VRTS - Free Report) announced an additional share repurchase authorization. The board of directors has approved the additional repurchase of 750,000 shares of VRTS’s outstanding common stock.
The buyback program, initiated in May 2013, has no specified term. In first-quarter 2022, VRTS repurchased 125,452 common shares for $30 million. As of Mar 31, 2022, it had 403,997 shares for repurchase.
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Triumph Bancorp (TBK) Up on Additional Share Buyback Program
Triumph Bancorp, Inc. has been actively boosting shareholders’ value on the back of share repurchases. Recently, the company completed its $50-million stock buyback program and authorized a new one for the purchase of up to $75 million of the company’s common stock.
Likely reflecting this news, shares of TBK rallied 6.5% in yesterday’s trading session.
The recently completed program was initiated on Feb 7, 2022. Since then, TBK has repurchased 709,795 shares of its common stock at an average price of $70.41 per share.
Also, the new $75-million share repurchase plan is valid for a period of up to a year.
Since the company does not have a history of dividend payments, capital deployments on the back of such encouraging share buybacks are likely to drive investor confidence in the stock.
As of Mar 31, 2022, it had cash and cash equivalents of $413.7 million, up from $383.2 million as of Dec 31, 2021. As of the same date, long-term debt of $41 million declined from $68 million as of Dec 31, 2021.
As of the first-quarter end, TBK had total assets of $6.08 billion, total loans held for investment of $4.72 billion and total deposits of $4.33 billion.
Also, the company’s debt/equity ratio of 0.05 is lower than the industry average of 0.13. This highlights that TBK is better positioned than its peers. The company will be financially stable, even in adverse economic conditions.
Hence, the company’s repurchase activities seem sustainable.
However, weakness in its near-term earningsis concerning. Over the last three to five years, TBK recorded earnings growth of 24.5%. However, in the ongoing year, the company’s earnings are projected to decline 9.9%.
The company’s shares have lost 42.9% so far this year compared with a 12.1% decline recorded by the industry.
Image Source: Zacks Investment Research
It carries a Zacks Rank #5 (Strong Sell) at present.
You can see the complete list of today’s Zacks #1Rank (Strong Buy) stocks here.
Finance Stocks That Took Similar Action
Piper Sandler Companies’ (PIPR - Free Report) board of directors approved the repurchase of up to $150 million worth of PIPR’s outstanding stock.
The buyback program, which is effective immediately and will expire on Dec 31, 2024, is in addition to the existing authorization. The current plan, announced in November 2021, became effective on Jan 1, 2022, and expires on Dec 31, 2023. Under this, PIPR is authorized to repurchase up to $150 million worth of shares and has roughly $43 million remaining as of May 6, 2022.
Capital One (COF - Free Report) 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 this January. COF repurchased shares worth $7.5 million in 2021.
Virtus Investment Partners, Inc. (VRTS - Free Report) announced an additional share repurchase authorization. The board of directors has approved the additional repurchase of 750,000 shares of VRTS’s outstanding common stock.
The buyback program, initiated in May 2013, has no specified term. In first-quarter 2022, VRTS repurchased 125,452 common shares for $30 million. As of Mar 31, 2022, it had 403,997 shares for repurchase.