DA Davidson Downgrades Sterling Financial Corp. (Washington) to Neutral (STSA)
Sterling Financial Corp. (Washington) (NASDAQ:STSA) was downgraded by DA Davidson from a “buy” rating to a “neutral” rating in a research note issued on Friday, TheFlyOnTheWall.com reports. They currently have a $30.52 price target on the stock, up from their previous price target of $30.00. DA Davidson’s target price suggests a potential upside of 7.46% from the stock’s previous close.
The analysts wrote, “Sterling shareholders will receive 1.671 shares of Umpqua Holdings Corporation (UMPQ – BUY – $16.44) common stock and $2.18 cash for each share of Sterling common stock. This represents a 15% premium to yesterday’s (9/11/2013) closing price and is, in our opinion, a fair value (~1.65x current TBV). The offer is approximately 2.5x Sterling’s 2010 recapitalization price and the merger would close the chapter on a successful transition from a struggling bank to one with a good franchise value that has attracted an impressive suitor. Existing shareholders of Umpqua and Sterling are expected to own approximately 51% and 49% of the outstanding shares, respectively.”
Sterling Financial Corp. (NASDAQ:STSA) traded up 1.97% on Friday, hitting $28.96. The stock had a trading volume of 1,118,520 shares. Sterling Financial Corp. has a 52-week low of $19.56 and a 52-week high of $29.76. The stock has a 50-day moving average of $26.3 and a 200-day moving average of $23.44. The company has a market cap of $1.789 billion and a price-to-earnings ratio of 17.54.
Sterling Financial Corp. (Washington) (NASDAQ:STSA) last released its earnings data on Thursday, July 25th. The company reported $0.44 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.37 by $0.07. On average, analysts predict that Sterling Financial Corp. will post $1.60 earnings per share for the current fiscal year.
Other equities research analysts have also recently issued reports about the stock. Analysts at Compass Point raised their price target on shares of Sterling Financial Corp. (Washington) (NASDAQ:STSA) from $21.50 to $27.00 in a research note to investors on Wednesday, August 7th. Separately, analysts at Keefe, Bruyette & Woods raised their price target on shares of Sterling Financial Corp. (Washington) (NASDAQ:STSA) from $23.00 to $27.00 in a research note to investors on Monday, July 29th. Finally, analysts at Zacks upgraded shares of Sterling Financial Corp. (Washington) (NASDAQ:STSA) from a “neutral” rating to an “outperform” rating in a research note to investors on Tuesday, July 9th. They now have a $27.50 price target on the stock.
Two research analysts have rated the stock with a hold rating and two have given a buy rating to the stock. The company currently has an average rating of “Buy” and a consensus target price of $26.67.
Sterling Financial Corporation (NASDAQ:STSA) is a bank holding company for Sterling Savings Bank.
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