Evercore Resumes Upswing As Financial Crisis Fades
Evercore Partners ( EVR ), an investment bank, has rebounded nicely from the 2008-09 financial crisis.
The stock debuted at 21 in August 2006 and quickly doubled before the recession caused by the 2008-09 financial crisis sent the stock -- and Evercore's profits -- tumbling into the red.
But profit has picked up in the past three years, and the stock is back near its highs amid a rebound in merger and acquisitions activity.
Evercore is in the Finance-Investment Bank/Brokers group, which on Wednesday was ranked 47th out of the 197 industry groups that IBD tracks. It enjoys a best-possible 99 Earnings Per Share Rating, and its 96 Composite Rating is third in the group behindFBR & Co. ( FBRC ) andMarketAxess Holdings ( MKTX ).
Evercore began offering a quarterly dividend in 2008 and held it steady at 12 cents a share through the dark days of 2008-09. It's since boosted the dividend steadily, to a quarterly payout of 22 cents a share now. That works out to 88 cents a share per year, good for an annual yield of 2.1%, a little below the S&P average of 2.4%.
Meanwhile, the stock is up 34% this year and 64% over the past 12 months, far outpacing the S&P 500.
Evercore is 8% off its March high. It's formed a cup-with-handle base with a 42.46 buy point. While the stock's Accumulation/Distribution Rating is D, the up/down volume ratio is positive at 1.1. An improving Accumulation grade would hint at growing institutional demand for shares. Investors should also watch to see if the stock can clear its buy point in big volume.
Evercore's profit jumped 270% last quarter, even better than the previous quarter's 153% increase. First-quarter revenue climbed a healthy 45%, though that trailed the prior quarter's 87% rise.
For the full year, earnings are expected to rise 16%, marking the fourth straight annual increase.