Is Now the Time to Invest in IBERIABANK Corporation (IBKC)?

Is Now the Time to Invest in IBERIABANK Corporation (IBKC)?


Many stocks have been testing new highs in 2020, and one of the most notable is IBERIABANK Corporation (IBKC). Currently, IBKC is trading at $54.96 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $68.94.

To add more color to this target, the company’s high over the last year is $79.68 and the low is $25.65. Over the last 52 weeks, IBKC is down -31.02% while the S&P 500 is up 1.21%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, IBKC reported a profit of $230.34 million. IBERIABANK Corporation also saw revenues increase to $302.93 million. In addition, IBKC has free cash flow of $83.09 million as of 03-2020.

IBKC booked profit margins of 23.70%, its Return on Equity (ROE) is 7.50%, and its Return on Assets is 1.00%. All told, it is clear that, IBKC needs to be on your watchlist.

About IBERIABANK Corporation

If readers are unfamiliar, IBERIABANK Corporation operates as a bank holding company for the IBERIABANK that provides commercial and retail banking products and services in the United States. It offers various commercial, consumer, mortgage, and private banking products and services; cash management services; deposit and annuity products; and brokerage services, as well as sells variable annuities. The company also provides various title insurance and loan closing services; equity research, institutional sales and trading, and corporate finance services; and wealth management and trust advisory services to high net worth individuals, pension funds, corporations, and trusts, as well as invests in purchased tax credits. As of December 31, 2019, it operated 191 bank branch offices and 3 loan production offices in Louisiana, Arkansas, Tennessee, Alabama, Texas, Florida, Georgia, South Carolina, North Carolina, Mississippi, Missouri, and New York; 28 title insurance offices in Arkansas, Tennessee, and Louisiana; mortgage representative offices in 84 locations in 12 states; and 14 wealth management locations in 5 states. IBERIABANK Corporation was founded in 1887 and is headquartered in Lafayette, Louisiana.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. IBKC has a short ratio of 2.61 and outstanding shares of 51.98M.

Company Outlook

IBKC has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.42 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 5.79. Investors should also keep an eye on sector updates as IBKC has historically followed its peers on positive news.

All told, IBERIABANK Corporation IBKC has strung together solid data and demonstrated underlying fundamentals. At its current valuation, IBKC represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

IBERIABANK Corporation IBKC is now commanding a market cap of 2.86B and a float of 51.52M. IBKC is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of IBKC stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in IBKC, either long or short, and we have not been compensated for this article.