Recently, Stifel Financial Corp.’s (SF - Free Report) wholly-owned subsidiary — 1919 Investment Counsel, LLC — which is an SEC-registered investment adviser inked a deal to acquire San Francisco-based Rand & Associates. Terms of the deal remain undisclosed. The bank entered into the deal with a view to fortify its wealth-management business.
Following the announcement, shares of Stifel rose 1.4%, as investors seem optimistic on expansion of the bank’s operations as well as expected synergies related to the deal.
Rand is an independent SEC-registered investment adviser with around $1.3 billion in assets under management. It serves individuals, families, and institutions with wealth management and investment counsel services. Notably, on a combined basis, 1919 and Rand cater more than $12 billion in assets under management.
“We are excited to welcome Andrew Rand and his team to Stifel,” mentioned Ronald J. Kruszewski, chairman and CEO of Stifel. “The addition of Rand to Stifel’s 1919 platform is yet another step in the firm’s expanding wealth and asset management practices. Our strategy of focusing on attracting high-quality organizations and people has been essential in the growth of our asset management business, which collectively now has more than $30 billion under management,” Kruszewski stated.
“The Rand acquisition gives 1919 a long-sought physical presence on the West Coast where we already serve many clients,” said Harry O’Mealia, president and CEO of 1919 Investment Counsel. “We are growing our firm opportunistically, focusing on doing business with those who share our commitment to serving as the advisor of choice for our clients and the employer of choice for our associates. Andrew Rand, Founder and Managing Director of Rand and his team complement us in so many ways and we are thrilled to welcome them as a partner,” O’Mealia noted further.
Stifel Financial’s inorganic growth activities reflect capital strength and efforts to bolster its performance. Recently, the bank also completed the acquisition of Business Bancshares and its wholly-owned subsidiary, The Business Bank of St. Louis. Also, it has diversified its revenue sources, which are likely to support the bank’s financials. Additionally, the company will benefit from improving conditions in the domestic economy.
Nonetheless, costs related to acquisitions might escalate expenses and hamper financials.
Over the past year, shares of Stifel have lost around 3%, as against the industry’s decline of 0.8%. The stock currently carries a Zacks Rank #4 (Sell).
Greenhill & Co., Inc. (GHL - Free Report) has been witnessing upward estimate revisions for the past 60 days. Moreover, this Zacks #1 (Strong Buy) Ranked stock has rallied more than 39% year to date. You can see the complete list of today’s Zacks #1 Rank stocks here.
E*TRADE Financial Corporation (ETFC - Free Report) has been witnessing upward estimate revisions for the past 30 days. Also, the company’s shares have gained nearly 5.7%, year to date. It holds a Zacks Rank of 2, at present.
First Financial Bankshares, Inc. (FFIN - Free Report) has been witnessing upward estimate revisions for the past 90 days. Additionally, the stock has jumped around 32.6% year to date. It currently carries a Zacks Rank #2.
5 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2018 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs. A bonus Zacks Special Report names this breakthrough and the 5 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains.
Click to see them right now >>