Sterling Bancorp STL continues to reward its shareholders through dividend hikes or additional share repurchases. The company recently announced a new share-buyback plan, with authorization to repurchase additional 20 million of the common shares.
Notably, under the existing repurchase program, the company has 1,572,535 shares remaining for repurchase as of Dec 31, 2019.
Sterling Bancorp has also been paying quarterly dividends. Its dividend was last hiked in February 2014 by 16.7% to 7 cents per share.
Sterling Bancorp has depreciated 11.1% in the last six months compared with the industry’s decline of 2.6%. Currently, the stock carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock has been witnessing upward estimate revisions, reflecting analysts’ optimism about its earnings growth potential. Over the past 60 days, the Zacks Consensus Estimate for 2020 and 2021 displayed an upward trend.
With strong liquidity and balance-sheet position, we believe Sterling Bancorp will continue to reward its shareholders, in the days to come. Let’s dig deeper into its financials and fundamental strengths, and see if the company is worth considering.
Stock is Undervalued: With respect to the price-to-earnings (P/E) and price-to-book (P/B) ratios, Sterling Bancorp looks undervalued. The company’s P/E ratio of 7.53 comes in below the industry average of 10.9. Also, the P/B ratio of the company is 0.78 compared with the industry average of 1.1.
Revenue Strength: Sterling Bancorp continues to make steady progress toward boosting its top line. Sales witnessed a 34.2% compounded annual growth rate (CAGR) over the last five years (2015-2019). Moreover, the company’s projected sales growth (F1/F0) of 1.38% indicates constant upward momentum in revenues.
Earnings Growth: Sterling Bancorp has witnessed earnings growth of 24% in the last three-five years. Additionally, the company’s projected earnings growth (F1/F0) of 6.36% indicates constant upward momentum.
During the current quarter, among other finance stocks, Popular, Inc. BPOP, Stifel Financial Corp. SF and Jefferies Financial Group Inc. JEF have also announced share-repurchase authorizations.
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