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Farmers & Merchants Bancorp Inc. (FMAO) Soars 7.3%: Is Further Upside Left in the Stock?
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Farmers & Merchants Bancorp Inc. (FMAO - Free Report) shares ended the last trading session 7.3% higher at $36.79. 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 12.2% loss over the past four weeks.
The announcement of the stock-cum-cash merger deal worth $27 million with Peoples-Sidney Financial Corporation drove Farmers & Merchants Bancorp’s stock higher in last day’s trading session. Per the deal, Farmers & Merchants Bancorp will acquire Peoples-Sidney.
Shareholders of Peoples-Sidney will elect to receive either 0.6597 shares of FMAO stock or $24 per share in cash for each of their shares owned, subject to a minimum of 65% of all Peoples-Sidney shares being exchanged for the FMAO stock.
Excluding one-time transaction costs, the acquisition is expected to be accretive to Farmers & Merchants Bancorp’s estimated 2023 and 2024 diluted earnings per share by 2.5% and 3.9%, respectively.
This company is expected to post quarterly earnings of $0.62 per share in its upcoming report, which represents a year-over-year change of +19.2%. Revenues are expected to be $24.95 million, up 24.8% 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 Farmers & Merchants 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 FMAO going forward to see if this recent jump can turn into more strength down the road.
Farmers & Merchants Bancorp Inc. is part of the Zacks Banks - Northeast industry. Community Bank System (CBU - Free Report) , another stock in the same industry, closed the last trading session 0.8% higher at $62.64. CBU has returned -3.2% in the past month.
Community Bank's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.82. Compared to the company's year-ago EPS, this represents a change of -6.8%. Community Bank currently boasts a Zacks Rank of #3 (Hold).
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Farmers & Merchants Bancorp Inc. (FMAO) Soars 7.3%: Is Further Upside Left in the Stock?
Farmers & Merchants Bancorp Inc. (FMAO - Free Report) shares ended the last trading session 7.3% higher at $36.79. 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 12.2% loss over the past four weeks.
The announcement of the stock-cum-cash merger deal worth $27 million with Peoples-Sidney Financial Corporation drove Farmers & Merchants Bancorp’s stock higher in last day’s trading session. Per the deal, Farmers & Merchants Bancorp will acquire Peoples-Sidney.
Shareholders of Peoples-Sidney will elect to receive either 0.6597 shares of FMAO stock or $24 per share in cash for each of their shares owned, subject to a minimum of 65% of all Peoples-Sidney shares being exchanged for the FMAO stock.
Excluding one-time transaction costs, the acquisition is expected to be accretive to Farmers & Merchants Bancorp’s estimated 2023 and 2024 diluted earnings per share by 2.5% and 3.9%, respectively.
This company is expected to post quarterly earnings of $0.62 per share in its upcoming report, which represents a year-over-year change of +19.2%. Revenues are expected to be $24.95 million, up 24.8% 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 Farmers & Merchants 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 FMAO 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 >>>>
Farmers & Merchants Bancorp Inc. is part of the Zacks Banks - Northeast industry. Community Bank System (CBU - Free Report) , another stock in the same industry, closed the last trading session 0.8% higher at $62.64. CBU has returned -3.2% in the past month.
Community Bank's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.82. Compared to the company's year-ago EPS, this represents a change of -6.8%. Community Bank currently boasts a Zacks Rank of #3 (Hold).