National Securities reaffirmed their buy rating on shares of StoneCastle Financial Corp (NASDAQ:BANX) in a research report report published on Monday. National Securities currently has a $23.00 price target on the investment management company’s stock.
“• For 3Q17, StoneCastle posted NII/share of $0.40/share, matching consensus and exceeding the dividend by 2 cents. The company continues to deliver strong and consistent effective yields as the market it operates in is largely unaffected by the spread compression seen in middle market cash flow based lending and has high barriers to entry.
• NAV/share increased to $21.56 from $21.47 Q/Q, largely as a result of unrealized appreciation of $630,000 during the quarter and an out-earned dividend. StoneCastle finished the quarter with only 1.2% of level 3 assets, making NAV much less susceptible to mark-to-model assumptions. We continue to think this greater transparency in NAV should warrant a higher premium to it.
• Additionally, despite US community banks having average annual failure rates of 38 bps, BANX continues to trade significantly wide (in terms of dividend yield) of the Bank of America Merrill Lynch BBB Corporate yield-to-worst index. The past year, the dividend yield on BANX’s stock averaged 385 bps higher than the index yield.
• We are revising our 2017 NII/share estimate to $1.59 from $1.60 and our 2018 NII/share estimate to $1.66 from $1.70. ,” National Securities’ analyst commented.
Several other research analysts have also weighed in on BANX. Keefe, Bruyette & Woods reaffirmed a buy rating and set a $22.50 target price on shares of StoneCastle Financial Corp in a research note on Thursday, August 10th. Zacks Investment Research lowered shares of StoneCastle Financial Corp from a hold rating to a sell rating in a research note on Friday, August 11th. Oppenheimer Holdings, Inc. set a $21.00 target price on shares of StoneCastle Financial Corp and gave the stock a buy rating in a research note on Thursday, August 10th. Finally, JMP Securities raised shares of StoneCastle Financial Corp from a market perform rating to an outperform rating and set a $23.00 target price for the company in a research note on Monday, August 14th. One research analyst has rated the stock with a sell rating and four have issued a buy rating to the company’s stock. StoneCastle Financial Corp currently has a consensus rating of Buy and an average target price of $22.75.
Shares of StoneCastle Financial Corp (NASDAQ BANX) traded up $0.12 during mid-day trading on Monday, reaching $20.48. 8,900 shares of the company’s stock traded hands, compared to its average volume of 12,403. The stock has a market capitalization of $133.99, a price-to-earnings ratio of 12.97 and a beta of 0.20. StoneCastle Financial Corp has a one year low of $18.05 and a one year high of $20.95.
StoneCastle Financial Corp (NASDAQ:BANX) last announced its earnings results on Thursday, November 9th. The investment management company reported $0.40 earnings per share for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.40. The company had revenue of $4.36 million for the quarter, compared to analysts’ expectations of $4.40 million. sell-side analysts expect that StoneCastle Financial Corp will post 1.58 EPS for the current fiscal year.
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Hedge funds and other institutional investors have recently bought and sold shares of the company. Wells Fargo & Company MN boosted its stake in shares of StoneCastle Financial Corp by 75.2% in the third quarter. Wells Fargo & Company MN now owns 11,147 shares of the investment management company’s stock valued at $230,000 after purchasing an additional 4,785 shares during the period. BB&T Securities LLC purchased a new position in shares of StoneCastle Financial Corp in the second quarter valued at approximately $248,000. Northern Trust Corp boosted its stake in shares of StoneCastle Financial Corp by 10.7% in the second quarter. Northern Trust Corp now owns 12,870 shares of the investment management company’s stock valued at $262,000 after purchasing an additional 1,240 shares during the period. Macquarie Group Ltd. purchased a new position in shares of StoneCastle Financial Corp in the third quarter valued at approximately $274,000. Finally, Bard Associates Inc. purchased a new position in shares of StoneCastle Financial Corp in the second quarter valued at approximately $422,000. 32.05% of the stock is owned by institutional investors and hedge funds.
About StoneCastle Financial Corp
StoneCastle Financial Corp. is a non-diversified, closed-end management investment company. The Company’s primary investment objective is to provide stockholders with current income, and to a lesser extent capital appreciation. The Company generally invests in the senior debt, subordinated debt, preferred shares and common stock of community banks.
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