On Tuesday, Florida-based
) announced the offering of more than 10.3 million shares of its
common stock by companies holding stakes in it. These companies
The Blackstone Group L.P.
The Carlyle Group
), WL Ross & Co. LLC and Centerbridge Partners, L.P.
BB&T CORP (BBT): Free Stock Analysis
BANKUNITED INC (BKU): Free Stock Analysis
BLACKSTONE GRP (BX): Free Stock Analysis
CARLYLE GROUP (CG): Free Stock Analysis
GOLDMAN SACHS (GS): Free Stock Analysis
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Later, on the same day, BankUnited announced that each share
would be available at a price of $33.50 for the public. The stock
offering is likely to close by Mar 7.
The Goldman Sachs Group, Inc.
) is serving as underwriter for the aforementioned offering. As
per terms of the deal, the underwriter can opt to buy an
additional 1.5 million shares in the offering.
Now, why these stakeholders want to vend their ownerships? This
could be due to the fact that these stakeholders are not seeing
further prospects in BankUnited shares.
On observing BankUnited's stock price movement, we find that it
is currently trading around its 52 week high. The impressive
price performance was primarily driven by the overall improvement
in the economic scenario wherein the major benchmarks are trading
at a high level. Apart from this, BankUnited has delivered
positive earning surprises in the trailing four quarters with an
average beat of 11.8% which further boosted investors'
Now given the innate volatile nature of the stock market, the
stakeholders initiated this offering to take advantage of the
bull run by booking profit.
Following the news release after the closing bell on Mar 4,
BankUnited's stock fell nearly 1%. However, nothing conclusive
can be inferred till we observe the company's share price
movement during the next trading session.
BankUnited currently carries a Zacks Rank #3 (Hold). A
better-performing major regional banks is
), with a Zacks Rank #2 (Buy).