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Capital Bank (CBF) Mulls Over Putting Itself Up for Sale

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According to a Bloomberg report, Capital Bank Financial Corp.CBF is mulling over putting itself up for sale after receiving an unsolicited approach.

Per the report, the Charlotte, NC-based bank has been in talks with advisers and has started looking for potential buyers.

Following the announcement, shares of the company hit a 52-week high of $44.97 in the day's trading and closed at $43.70 on Mar 15, gaining nearly 7% from the previous day's closing.

As of Dec 31, 2016, Capital Bank Financial had approximately $309 million in cash and cash equivalents, $9.9 billion in total assets and $136 million in borrowings.

In our opinion, the company's solid liquidity position and impressive loan growth make it an attractive acquisition candidate right now. Moreover, any deal involving the acquisition of Capital Bank will provide greater leverage to the existing shareholders of the company. Also, the buyer will gain exposure in the regions of Florida, North and South Carolina, Tennessee, and Virginia, where the U.S. lender has approximately 196 banking offices.

Further, the company's price performance has been quite encouraging in the last few years. Shares of Capital Bank Financial increased nearly 55.4% in the last two years, outpacing the Zacks categorized Southeast Banks industry's gain of 49.1%.

Currently, Capital Bank Financial carries a Zacks Rank #2 (Buy).

Some other stocks worth considering in the same space include Fidelity Southern Corporation LION , Bank of the Ozarks, Inc. OZRK and Synovus Financial Corp. SNV .

Fidelity Southern Corporation witnessed an upward earnings estimate revision of 4.6% for the current year, in the last 60 days. Its share price increased 23.3% in the last six months. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Bank of the Ozarks carries a Zacks Rank #2. For the current year, in the last 60 days, its Zacks Consensus Estimate was revised 1.3% upward. Its share price increased 40.7% in the last six months.

Synovus Financial also carries a Zacks Rank #2. It has witnessed an upward earnings estimate revision of 3.2% for the current year, in the last 60 days. Its share price increased 28.1% in the last six months.

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Synovus Financial Corp. (SNV): Free Stock Analysis Report

Bank of the Ozarks (OZRK): Free Stock Analysis Report

Fidelity Southern Corporation (LION): Free Stock Analysis Report

Capital Bank Financial Corp. (CBF): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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