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.
Wintrust Prices Public Offering of $300M Subordinated Notes
Read MoreHide Full Article
Wintrust Financial Corporation (WTFC - Free Report) has priced a public offering of $300 million aggregate principal amount of subordinated notes. The notes carry an interest rate of 4.85% and are slated to mature in 2029. The offering will close on Jun 6, 2019, subject to customary closing conditions.
The company intends to use proceeds from the offering for general corporate purposes. These include making investments at the holding company level, providing capital to support growth, acquisitions or other business combinations, including FDIC-assisted acquisitions, and reducing or refinancing existing debt.
RBC Capital Markets LLC — a division of Royal Bank of Canada (RY - Free Report) — U.S. Bancorp (USB - Free Report) and Citigroup Global Markets Inc. — a division of Citigroup (C - Free Report) — are acting as joint book-running managers for the purpose. The offering is made under the company’s shelf registration statement.
Factors in Favor of Wintrust
Inorganic Growth Strategies: Wintrust has been expanding inorganically since 2003. In 2019, the company completed the buyout of Rush-Oak Corporation. Prior to this, it had acquired American Enterprise Bank and Chicago Shore Corporation in 2018. We believe that the company’s latest acquisition spree will prove accretive to revenues.
Revenue Strength: Wintrust Financial continues to witness top-line improvement. Since 2014, the company has recorded a consistent rise in its sales, witnessing five-year (ended 2018) compound annual growth rate (CAGR) of nearly 10.4%.
The company’s projected sales growth (F1/F0) of 10.2% (compared with the industry average of about 6.9%) indicates constant upward momentum in revenues
Superior Return on Equity (ROE): Wintrust Financial’s ROE of 11.28% compares favorably with the industry average of 10.70%. This indicates that the company reinvests more efficiently compared to the industry.
Stock Looks Undervalued: Wintrust has P/E and P/CF ratios of 10.23 and 9.36 compared to the industry average of 10.84 and 9.99, respectively. Based on these ratios, the stock seems undervalued. It currently has a Value Score of B. Our research shows that stocks with a Style Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2 (Buy), offer the best upside potential.
Our Take
The public stock offering might support the company's financial flexibility and help meet its financial obligations in an efficient way. Moreover, it provides ample scope to deploy capital for long-term growth opportunities and rewarding higher returns to stockholders at the same time.
Also, the company’s strong balance sheet and liquidity position support its growth. Furthermore, inorganic expansion efforts have so far resulted in improved revenues and rise in market share.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Wintrust Prices Public Offering of $300M Subordinated Notes
Wintrust Financial Corporation (WTFC - Free Report) has priced a public offering of $300 million aggregate principal amount of subordinated notes. The notes carry an interest rate of 4.85% and are slated to mature in 2029. The offering will close on Jun 6, 2019, subject to customary closing conditions.
The company intends to use proceeds from the offering for general corporate purposes. These include making investments at the holding company level, providing capital to support growth, acquisitions or other business combinations, including FDIC-assisted acquisitions, and reducing or refinancing existing debt.
RBC Capital Markets LLC — a division of Royal Bank of Canada (RY - Free Report) — U.S. Bancorp (USB - Free Report) and Citigroup Global Markets Inc. — a division of Citigroup (C - Free Report) — are acting as joint book-running managers for the purpose. The offering is made under the company’s shelf registration statement.
Factors in Favor of Wintrust
Inorganic Growth Strategies: Wintrust has been expanding inorganically since 2003. In 2019, the company completed the buyout of Rush-Oak Corporation. Prior to this, it had acquired American Enterprise Bank and Chicago Shore Corporation in 2018. We believe that the company’s latest acquisition spree will prove accretive to revenues.
Revenue Strength: Wintrust Financial continues to witness top-line improvement. Since 2014, the company has recorded a consistent rise in its sales, witnessing five-year (ended 2018) compound annual growth rate (CAGR) of nearly 10.4%.
The company’s projected sales growth (F1/F0) of 10.2% (compared with the industry average of about 6.9%) indicates constant upward momentum in revenues
Superior Return on Equity (ROE): Wintrust Financial’s ROE of 11.28% compares favorably with the industry average of 10.70%. This indicates that the company reinvests more efficiently compared to the industry.
Stock Looks Undervalued: Wintrust has P/E and P/CF ratios of 10.23 and 9.36 compared to the industry average of 10.84 and 9.99, respectively. Based on these ratios, the stock seems undervalued. It currently has a Value Score of B. Our research shows that stocks with a Style Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2 (Buy), offer the best upside potential.
Our Take
The public stock offering might support the company's financial flexibility and help meet its financial obligations in an efficient way. Moreover, it provides ample scope to deploy capital for long-term growth opportunities and rewarding higher returns to stockholders at the same time.
Also, the company’s strong balance sheet and liquidity position support its growth. Furthermore, inorganic expansion efforts have so far resulted in improved revenues and rise in market share.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>