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Pinnacle Financial Partners (NASDAQ:PNFP) Inc., headquartered in Nashville, Tennessee, is a bank holding company providing a range of banking services. The company's common stock is listed on the Nasdaq Stock Market under the ticker symbol PNFP, currently trading at $123.01 with a P/E ratio of 20.51. InvestingPro analysis suggests the stock is slightly undervalued, with additional insights available in the comprehensive Pro Research Report, part of InvestingPro's coverage of over 1,400 US equities.
The named executive officers, including CEO M. Terry Turner and other top management, were granted RSUs and Performance Units that will vest over a three-year period. These grants are part of the company's long-term incentive plan, with the actual number of shares earned depending on the company's performance metrics such as return on average tangible common equity and tangible book value per share accretion, compared to a peer group. The company's current performance metrics show promise, with six analysts recently revising their earnings expectations upward for the upcoming period, and the stock trading between analyst targets of $120-$148.
Additionally, the RSUs will vest in one-third increments on specified dates between 2026 and 2028. The Performance Units are subject to a performance period ending December 31, 2027, and may be adjusted based on total shareholder return performance against the KBW Regional Bank Index.
In cases of employment termination due to retirement, death, or disability, certain provisions allow for the vesting of a pro rata portion or all of the unvested RSUs and Performance Units. However, if employment is terminated for other reasons, the executive may forfeit these awards.
The filing also outlines the treatment of these equity awards in the event of a Change in Control of the company. In such a scenario, all unvested and outstanding RSUs and Performance Units would vest immediately prior to the consummation of the Change in Control.
Pinnacle Financial Partners Inc., headquartered in Nashville, Tennessee, is a bank holding company providing a range of banking services. The company's common stock is listed on the Nasdaq Stock Market under the ticker symbol PNFP, currently trading at $123.01 with a P/E ratio of 20.51. InvestingPro analysis suggests the stock is slightly undervalued, with additional insights available in the comprehensive Pro Research Report, part of InvestingPro's coverage of over 1,400 US equities.
This report is based on a press release statement and the full details of the equity awards, including the terms and conditions, can be found in the exhibits filed with the SEC.
In other recent news, Pinnacle Financial Partners has seen its price target raised to $148 by Citi analyst Benjamin Gerlinger, up from a previous target of $132. This adjustment is attributed to the company's distinctive loan growth within the regional banking sector, a success credited to its strategic hiring practices. Furthermore, the company's robust loan growth and operational leverage are key drivers of its financial performance, bolstering confidence in its earnings per share outlook for 2026 and 2027.
Recent developments also highlight Citi's confidence in Pinnacle Financial's ability to capitalize on current market conditions. Despite projections of fourth-quarter 2024 results not meeting current expectations due to high deposit growth affecting the net interest margin, Pinnacle Financial is anticipated to perform strongly in the long term.
Moreover, the company is expected to maintain its trend of adding lenders at a rate above its peers, contributing to a notable increase in loan growth. Despite a projected slight increase in expenses for 2025 and 2026, Pinnacle Financial's financial outlook for 2025 should exhibit low-double digit growth across key areas such as net interest income, loans, and expenses. The company is also considered well-positioned to benefit from potential lender additions if merger and acquisition activity increases within its market footprint.
Lastly, Pinnacle Financial Partners experienced robust growth in the third quarter, with significant increases in loans, deposits, and earning assets. The company has adjusted its 2024 loan growth expectation to 7%-8% and raised fee revenue expectations to 23%-26%.
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