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Amalgamated Bank (NASDAQ:AMAL) shares have reached an unprecedented peak, touching an all-time high of $33.34. This milestone underscores a remarkable period of growth for the bank, which has seen its stock value nearly double with a 1-year change of 95.17%. Investors have rallied behind Amalgamated Bank, buoyed by strong financial performance and positive market sentiment, propelling the stock to new heights and setting a robust precedent for its future trajectory.
In other recent news, Amalgamated Bank has demonstrated strong financial performance, surpassing earnings expectations by $0.13 per share in the second quarter. This robust performance was largely driven by significant political deposit growth of over 20%, resulting in an increase of over $759 million in deposits, primarily from political, union, and non-profit customer segments. In light of these recent developments, Piper Sandler maintained its Overweight rating on Amalgamated Bank with a steady price target of $36.00, indicating confidence in the bank's operations and prospects.
Keefe, Bruyette & Woods also showed optimism by increasing their price target for the bank's shares from $30.00 to $35.00, maintaining an Outperform rating. The bank's strategy of moving excess deposits off the balance sheet ahead of the fourth quarter was noted by Keefe analysts, which is expected to reduce earnings volatility leading into 2025. This move, coupled with a favorable net interest income outlook, prompted an upward revision of earnings per share estimates by 6% for both 2024 and 2025.
Despite expecting political deposits to begin exiting in the third quarter, Amalgamated Bank remains optimistic for the remainder of the year and into 2025. The bank has adjusted its target balance sheet size for year-end to approximately $8.3 billion. With these recent developments, the bank continues to attract attention from investors and analysts alike.
InvestingPro Insights
Amalgamated Bank's (AMAL) recent stock performance aligns with several key metrics from InvestingPro. The bank's shares are currently trading near their 52-week high, with a price that's 98.77% of the peak, confirming the article's observation of reaching an all-time high. This is further supported by the impressive 88.67% total return over the past year, closely matching the 95.17% 1-year change mentioned in the article.
InvestingPro data reveals a P/E ratio of 10.17, suggesting that AMAL may be undervalued relative to its earnings. This is reinforced by an InvestingPro Tip indicating that the bank is trading at a low P/E ratio relative to its near-term earnings growth, which could explain the strong investor interest.
Additionally, AMAL has demonstrated solid financial health with a 12.39% quarterly revenue growth and an operating income margin of 49.44% for the last twelve months as of Q2 2024. These figures support the article's mention of strong financial performance driving the stock's rise.
For investors seeking more comprehensive analysis, InvestingPro offers 7 additional tips for Amalgamated Bank, providing deeper insights into the company's financial position and market outlook.
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