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Cadence Bank (CADE) Rises 5.9% on New Share Buyback Program
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Cadence Bank (CADE - Free Report) shares have gained 5.9% on Dec 14, following the announcement of the new share repurchase program. Under the plan, subject to the Federal Deposit Insurance Corporation approval, the board of directors of this Tupelo, MS-based bank has authorized the repurchase of up to an aggregate of 10 million shares of Cadence's common stock. The new program will be effective on Jan 2, 2024 and will expire on Dec 31, 2024.
Previously, CADE announced its stock repurchase program on Dec 14, 2022, which authorized the buyback of up to an aggregate of 10 million shares of the company’s common stock. This program commenced on Jan 3, 2023, and will end on Dec 29, 2023. However, the bank has not repurchased any shares under this repurchase program.
In addition to the share repurchase program, Cadence Bank also has a history of paying quarterly dividends. This October, CADE announced a quarterly dividend of 24 cents per share. The dividend will be paid out on Jan 2, 2024, to shareholders of record as of Dec 15, 2023.
Prior to this, the company hiked its dividend in January 2023 by 6.8% to 24 cents per share. It increased its dividend five times in the last five years. Based on the current payout rate, the annual dividend comes to 94 cents per share. This results in an annualized dividend yield of 3.18%, considering the last day’s closing price of $31.04 per share.
As of Sep 30, 2023, Cadence Bank had total cash and cash equivalents of $2 billion, higher than subordinated and long-term borrowings of $449 million. Also, the company’s debt/equity ratio of 0.11 compares favorably with the industry’s average of 0.30, reflecting its relatively robust financial health. Thus, given the strong liquidity position, it will be able to continue its capital distribution activities and keep enhancing shareholder value.
Shares of Cadence Bank have gained 44.8% over the past three months compared with the industry’s growth of 18.1%.
Deutsche Bank AG (DB - Free Report) has announced the completion of its share repurchase program. On Jul 25, 2023, Deutsche Bank received supervisory approvals for share repurchases of up to €450 million by 2023 end, which was 50% higher than in 2022.
Under the said plan, DB repurchased 45.5 million shares at a weighted average price of €9.88 per share between Aug 2 and Dec 8 of 2023.
Byline Bancorp, Inc. (BY - Free Report) announced a new share repurchase plan. The company’s board of directors has authorized the repurchase of up to 1.25 million shares. The program will commence on Jan 1, 2024, and expire on Dec 31, 2024.
The repurchase authorization represents 2.9% of Byline’s outstanding common stock.
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Cadence Bank (CADE) Rises 5.9% on New Share Buyback Program
Cadence Bank (CADE - Free Report) shares have gained 5.9% on Dec 14, following the announcement of the new share repurchase program. Under the plan, subject to the Federal Deposit Insurance Corporation approval, the board of directors of this Tupelo, MS-based bank has authorized the repurchase of up to an aggregate of 10 million shares of Cadence's common stock. The new program will be effective on Jan 2, 2024 and will expire on Dec 31, 2024.
Previously, CADE announced its stock repurchase program on Dec 14, 2022, which authorized the buyback of up to an aggregate of 10 million shares of the company’s common stock. This program commenced on Jan 3, 2023, and will end on Dec 29, 2023. However, the bank has not repurchased any shares under this repurchase program.
In addition to the share repurchase program, Cadence Bank also has a history of paying quarterly dividends. This October, CADE announced a quarterly dividend of 24 cents per share. The dividend will be paid out on Jan 2, 2024, to shareholders of record as of Dec 15, 2023.
Prior to this, the company hiked its dividend in January 2023 by 6.8% to 24 cents per share. It increased its dividend five times in the last five years. Based on the current payout rate, the annual dividend comes to 94 cents per share. This results in an annualized dividend yield of 3.18%, considering the last day’s closing price of $31.04 per share.
As of Sep 30, 2023, Cadence Bank had total cash and cash equivalents of $2 billion, higher than subordinated and long-term borrowings of $449 million. Also, the company’s debt/equity ratio of 0.11 compares favorably with the industry’s average of 0.30, reflecting its relatively robust financial health. Thus, given the strong liquidity position, it will be able to continue its capital distribution activities and keep enhancing shareholder value.
Shares of Cadence Bank have gained 44.8% over the past three months compared with the industry’s growth of 18.1%.
Image Source: Zacks Investment Research
Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Share Buyback Plans of Other Banks
Deutsche Bank AG (DB - Free Report) has announced the completion of its share repurchase program. On Jul 25, 2023, Deutsche Bank received supervisory approvals for share repurchases of up to €450 million by 2023 end, which was 50% higher than in 2022.
Under the said plan, DB repurchased 45.5 million shares at a weighted average price of €9.88 per share between Aug 2 and Dec 8 of 2023.
Byline Bancorp, Inc. (BY - Free Report) announced a new share repurchase plan. The company’s board of directors has authorized the repurchase of up to 1.25 million shares. The program will commence on Jan 1, 2024, and expire on Dec 31, 2024.
The repurchase authorization represents 2.9% of Byline’s outstanding common stock.