Cadence Bancorporation (NYSE:CADE)'s stock soared to an all-time high this week, reaching a peak of $35.85 USD. This milestone underscores a period of robust growth for the company, which has seen its stock value surge by an impressive 48.35% over the past year. Investors have shown increasing confidence in Cadence's financial performance and strategic initiatives, propelling the stock to new heights and marking a significant achievement for the firm in the competitive banking sector.
In other recent news, Cadence BanCorp has reported steady growth in its Q3 2024 earnings. The bank's GAAP net income stood at $134.1 million, or $0.72 per diluted share, with a 6% quarter-over-quarter increase in adjusted net income from continuing operations, amounting to $135.6 million, or $0.73 per share. Core customer deposits grew by over 11% year-over-year, reaching nearly $985 million. Furthermore, Cadence Bank maintains a robust capital position with a CET1 ratio of 12.3%.
In addition to these financial results, Citi recently maintained a Neutral rating on Cadence BanCorp but increased the price target to $37.00 from the previous $35.00. This adjustment reflects the analyst's expectation of continued net interest margin expansion and effective cost management in the coming quarters. Despite softer than anticipated loan growth, the bank's credit quality was reported to be in sound condition, with anticipations of further strengthening of the capital base.
Looking ahead, Cadence Bank's management is optimistic about maintaining growth in loan originations and improving net interest margins. They also anticipate revenue growth to surpass expense growth into 2025 and are considering potential mergers and acquisitions. These recent developments indicate a promising outlook for Cadence Bank.
InvestingPro Insights
Cadence Bancorporation's recent stock performance aligns with several key metrics and insights from InvestingPro. The company's stock has indeed shown remarkable strength, with InvestingPro data revealing a 51.8% total return over the past year. This performance is further supported by a strong 17.57% return over the last three months, indicating sustained momentum.
InvestingPro Tips highlight that Cadence has maintained dividend payments for 40 consecutive years and has raised its dividend for 12 consecutive years, demonstrating a commitment to shareholder value. This consistency in dividend policy may be contributing to investor confidence and the stock's recent surge.
The company's current P/E ratio of 9.61 suggests it may be undervalued relative to its earnings, potentially explaining the increased investor interest. Additionally, analysts predict the company will be profitable this year, which could further support the stock's upward trajectory.
For investors seeking more comprehensive analysis, InvestingPro offers 13 additional tips for Cadence Bancorporation, providing a deeper understanding of the company's financial health and market position.
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