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Piper Sandler maintained its Overweight rating and $88.00 price target on QCR Holdings (NASDAQ:QCRH), currently trading at $64.23 with a market capitalization of $1.09 billion, following investor meetings with the company’s President and CEO Todd Gipple last week. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value assessment.
The research firm expressed reinforced conviction that QCR Holdings is well-positioned to exceed earnings estimates and generate price-to-earnings expansion through several factors. Currently trading at a P/E ratio of 10.65, with InvestingPro data showing a 24-year track record of consistent dividend payments, the company has demonstrated long-term durability of its capital markets and swap revenue business driven by its low income housing tax credit lending niche.
Piper Sandler also highlighted potential improvements in the capital efficiency of QCR’s low income housing tax credit business through ongoing initiatives. Additional factors supporting the firm’s outlook include share gains in generating above-average core deposit growth, wealth management, and in-footprint commercial loan growth.
The research firm noted QCR’s more benign net charge-off levels and well-controlled operating expenses relative to revenue growth as further positive indicators. Piper Sandler also cited more favorable balance sheet metrics, profitability, and capital flexibility with additional low income housing tax credit securitizations.
Piper Sandler views QCR Holdings’ current valuation of 9.7x/8.8x its 2025/2026 earnings estimates and 1.2x tangible book value as an attractive entry point for investors, despite the stock’s 25.4% decline over the past six months. For deeper insights into QCR Holdings’ valuation metrics and additional financial health indicators, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with detailed analysis and actionable intelligence.
In other recent news, QCR Holdings reported its financial results for the first quarter of 2025, revealing an adjusted earnings per share (EPS) of $1.53, which slightly exceeded the analyst forecast of $1.51. However, the company’s revenue fell short of expectations, coming in at $76.88 million compared to the anticipated $94.01 million. The company also highlighted a focus on its LITECH lending program and wealth management growth, with non-interest expenses seeing a significant reduction, improving operational efficiency. In terms of leadership changes, Todd A. Gipple has taken over as President and CEO following Larry J. Helling’s retirement, while Nick W. Anderson has been appointed as Chief Financial Officer. The company announced a cash dividend of $0.06 per share, scheduled for payment on July 3, 2025. Additionally, QCR Holdings plans a significant securitization of approximately $350 million, which could enhance its capital position. The company has reported having $9.2 billion in assets, $6.8 billion in loans, and $7.3 billion in deposits as of March 31, 2025. These developments reflect QCR Holdings’ ongoing strategic focus and financial positioning.
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