India Markets open in 3 hrs 47 mins

BancorpSouth Unveils Share Buyback Plan to Cheer Stockholders

Zacks Equity Research

BancorpSouth Bank’s BXS board of directors has authorized a new share repurchase program of up to 8 million shares. The plan will be commencing on Jan 2, 2020 and expire on Dec 31, 2020.

In December 2018, BancorpSouth had announced a share repurchase program of nearly 3 million shares expiring on Dec 31, 2019. Prior to this, the bank had completed its share buyback of 6 million on Oct 31, 2018.

The increase in current buyback authorization was possible as the company generated enough capital by issuing 4.125% Fixed-to-Floating Rate Subordinated Notes worth $300 million and 5.5% Series A Non-Cumulative Perpetual Preferred Stock worth $172.5 million in November.

Alongside share repurchases, the company pays dividends regularly. BancorpSouth has been raising its quarterly dividend on an annual basis since 2013. The latest hike of 8.8% was announced in July 2019. Prior to this, it had raised dividend by 21.4% in July 2018.

BancorpSouth’s ability to generate positive cash flows and its consistently improving earnings performance over the last few quarters seem encouraging. Thus, driven by a healthy liquidity position, the company remains well poised to increase shareholders’ wealth.

Shares of the company have rallied 23.8% so far this year, outperforming the industry’s growth of 21.7%.

Currently, BancorpSouth carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past three months, other banks like Fulton Financial Corporation FULT and Hancock Whitney Corporation HWC have announced share buyback program. While Fulton Financial authorized the repurchase of up to $100 million worth of shares, Hancock Whitney has entered into an accelerated share repurchase agreement with Morgan Stanley MS) to buy back shares worth $185 million.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Fulton Financial Corporation (FULT) : Free Stock Analysis Report
 
BancorpSouth Bank (BXS) : Free Stock Analysis Report
 
Morgan Stanley (MS) : Free Stock Analysis Report
 
Hancock Whitney Corporation (HWC) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.