Umpqua Holdings Corp. Rating Increased to Buy at DA Davidson (UMPQ)
Umpqua Holdings Corp. (NASDAQ:UMPQ) was upgraded by equities researchers at DA Davidson from a “neutral” rating to a “buy” rating in a research report issued on Friday, TheFlyOnTheWall.com reports. The firm currently has a $20.00 target price on the stock, up from their previous target price of $17.00. DA Davidson’s price objective indicates a potential upside of 23.92% from the stock’s previous close.
The analysts wrote, “Sterling shareholders will receive 1.671 shares of Umpqua common stock in addition to $2.18 cash, which equates to $30.52 per share or 1.67x Sterling’s TBV (93% stock / 7% cash). The deal is expected to close in 1H’14. The combined entity, which will operate under the Umpqua brand, will hold $22 billion in assets, $15 billion in loans, and $16 billion in deposits with 394 branches across 5 states. The acquisition would position UMPQ as a premier community bank, holding a top 3 ranking among locally headquartered banks by deposit market share in 10 out of 11 primary markets. The pro forma loan book will be CRE based (43%) with a higher emphasis in multifamily (16% pro-forma vs. 5% UMPQ) and 1-4 family loans (14% pro-forma vs. 10% UMPQ). Management believes this to be a strategic acquisition that leverages the UMPQ brand and fortifies an expanded footprint.”
Umpqua Holdings Corp. (NASDAQ:UMPQ) traded up 2.23% during mid-day trading on Friday, hitting $16.50. 2,454,706 shares of the company’s stock traded hands. Umpqua Holdings Corp. has a one year low of $11.17 and a one year high of $17.48. The stock’s 50-day moving average is $16.80 and its 200-day moving average is $14.42. The company has a market cap of $1.846 billion and a price-to-earnings ratio of 17.74.
Umpqua Holdings Corp. (NASDAQ:UMPQ) last released its earnings data on Wednesday, July 17th. The company reported $0.24 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.22 by $0.02. During the same quarter in the prior year, the company posted $0.21 earnings per share. On average, analysts predict that Umpqua Holdings Corp. will post $0.97 earnings per share for the current fiscal year.
UMPQ has been the subject of a number of other recent research reports. Analysts at RBC Capital upgraded shares of Umpqua Holdings Corp. (NASDAQ:UMPQ) from a “sector perform” rating to an “outperform” rating in a research note to investors on Thursday. They now have a $20.00 price target on the stock, up previously from $17.00. Separately, analysts at Raymond James raised their price target on shares of Umpqua Holdings Corp. (NASDAQ:UMPQ) from $15.00 to $18.00 in a research note to investors on Monday, July 22nd. They now have an “outperform” rating on the stock. Finally, analysts at UBS AG reiterated a “buy” rating on shares of Umpqua Holdings Corp. (NASDAQ:UMPQ) in a research note to investors on Friday, July 19th. They now have a $18.00 price target on the stock.
One analyst has rated the stock with a sell rating, four have given a hold rating and six have given a buy rating to the stock. Umpqua Holdings Corp. currently has an average rating of “Hold” and an average price target of $16.40.
Umpqua Holdings Corporation (NASDAQ:UMPQ) is a financial holding company.
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