Cadence Bank (NYSE:CADE) Receives Overweight Upgrade from Barclays

On December 22, 2024, Barclays announced the upgrade of Cadence Bank (NYSE:CADE – Free Report) from an equal weight rating to an overweight rating. This upgrade was shared in a research report released on Thursday, according to Marketbeat. Barclays also increased its price target for the stock to $44.00, up from the previous target of $41.00.

Cadence Bank has been highlighted in various other reports recently. For instance, Royal Bank of Canada raised its target price from $35.00 to $36.00 and maintained a "sector perform" rating on October 23. Similarly, Morgan Stanley upgraded the bank from an "equal weight" to an "overweight" rating, raising the price target from $36.00 to $39.00 in a report issued on September 30. In addition, Keefe, Bruyette & Woods raised their price objective from $38.00 to $45.00, giving Cadence Bank an "outperform" rating as of December 4.

On October 23, DA Davidson increased its target price for Cadence Bank from $36.00 to $40.00 and provided a "buy" rating. Additionally, Truist Financial revised their target price from $37.00 to $38.00 with a "buy" rating the same day. Currently, four analysts have rated the stock with a hold rating, while seven analysts have given it a buy rating, and one has issued a strong buy rating. According to MarketBeat, Cadence Bank has an average rating of "Moderate Buy" and a consensus target price of $36.88.

Performance of Cadence Bank Stock

The shares of Cadence Bank opened at $34.08 on Thursday. Over the past year, the stock has reached a low of $24.99 and a high of $40.20. With a market cap of $6.21 billion, the company has a price-to-earnings ratio of 9.79 and a beta of 0.98. The debt-to-equity ratio stands at 0.04, while both the quick ratio and current ratio are 0.87. The stock has a 50-day simple moving average of $36.04 and a 200-day simple moving average of $32.30.

Cadence Bank last reported its earnings on October 21, showing an earnings per share (EPS) of $0.73 for the quarter. This result exceeded analysts' expectations, which anticipated an EPS of $0.64, marking a positive difference of $0.09. The banking firm achieved a net margin of 25.99% and a return on equity of 8.95%. In terms of revenue, Cadence Bank reported $447.36 million, slightly below analysts' estimates of $450.97 million but up by 11.0% compared to the same quarter a year prior.

Cadence Bank’s Dividend Declaration

Cadence Bank has also announced a quarterly dividend, scheduled to be paid on January 2, 2025. Shareholders of record as of December 13 will receive a $0.25 dividend, leading to an annualized total of $1.00, which provides a yield of 2.93%. The ex-dividend date is set for December 13, and the company's payout ratio currently sits at 28.74%.

Institutional Investors and Cadence Bank

A range of institutional investors have recently adjusted their holdings in Cadence Bank. For example, V Square Quantitative Management LLC gained a new stake worth around $25,000 during the third quarter. Point72 Hong Kong Ltd also acquired a new stake valued at approximately $32,000. Moreover, GAMMA Investing LLC increased its holdings by 55.8% during the same quarter, now owning 1,561 shares valued at $50,000. Other institutional investors, such as Innealta Capital LLC and TD Private Client Wealth LLC, have also expanded their investments in Cadence Bank. Notably, institutional investors own approximately 84.61% of the company's stock.

About Cadence Bank

Cadence Bank is engaged in providing various commercial banking and financial services. Their offerings include consumer banking, loans, mortgages, credit cards, business banking services, treasury management, asset-based lending, and real estate financing.

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