On Jun 18, Zacks Investment Research upgraded
Umpqua Holdings Corporation
) to a Zacks Rank #1 (Strong Buy).
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UMPQUA HLDGS CP (UMPQ): Free Stock Analysis
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Why the Upgrade?
Umpqua Holdings has been witnessing rising earnings estimates
owing to the announcement of an acquisition, hike in its
quarterly cash dividend and the payment of a special dividend.
Moreover, this regional bank has a long-term earnings growth
forecast of 11.5%.
On Jun 4, Umpqua Holdings announced a deal to acquire Financial
Pacific Holding Corp. for $158 million in cash. The transaction
will likely be complete in July. Upon completion, the company
anticipates operating earnings per share accretion of 14% in the
first full year and immediate accretion of about 35 basis points
to net interest margin.
Additionally, in May 2013, Umpqua Holdings announced a 50% hike
in its quarterly cash dividend. The cash dividend of 15 cents per
share will be paid on Jul 15 to shareholders of record on Jun 28.
Additionally, the company announced a special dividend of 5
cents, which was paid on Jun 14 to shareholders of record on May
The Zacks Consensus Estimate for 2013 increased 4.5% to 92 cents
per share, as a majority of estimates was revised upwards over
the last 30 days. For 2014, the Zacks Consensus Estimate rose by
12.1% to $1.02 per share over the same period.
Other Stocks to Consider
Other stocks in the banking sector that are worth a look include
Central Pacific Financial Corp.
Metro Bancorp, Inc.
) - all of which carry a Zacks Rank #1.