Many stocks have been testing new highs in 2020, and one of the most notable is South State Corporation (SSB). Currently, SSB is trading at $63.93 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $63.00.
To add more color to this target, the company’s high over the last year is $88.10 and the low is $40.42. Over the last 52 weeks, SSB is down -27.43% 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, SSB reported a profit of $128.01 million. South State Corporation also saw revenues increase to $147.8 million. In addition, SSB has free cash flow of $38.89 million as of 03-2020.
SSB booked profit margins of 27.90%, its Return on Equity (ROE) is 7.10%, and its Return on Assets is 1.00%. All told, it is clear that, SSB needs to be on your watchlist.
About South State Corporation
If readers are unfamiliar, South State Corporation operates as the bank holding company for South State Bank that provides a range of retail and commercial banking services, mortgage lending services, trust and wealth management services, and consumer finance loans. The company accepts demand deposits, savings deposits, interest-bearing transaction accounts, certificates of deposit, and other time deposits; and offers lending and credit card, and ATM processing services. It serves customers through 168 financial centers in 29 South Carolina counties, 8 North Carolina counties, 17 Georgia counties, and 4 Virginia counties. The company was formerly known as First Financial Holdings, Inc. and changed its name to South State Corporation in July 2013. South State Corporation was founded in 1933 and is headquartered in Columbia, South Carolina.
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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. SSB has a short ratio of 6.49 and outstanding shares of 33.57M.
SSB has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.5 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 4.84. Investors should also keep an eye on sector updates as SSB has historically followed its peers on positive news.
All told, South State Corporation SSB has strung together solid data and demonstrated underlying fundamentals. At its current valuation, SSB 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.
South State Corporation SSB is now commanding a market cap of 2.15B and a float of 32.79M. SSB 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 SSB 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 SSB, either long or short, and we have not been compensated for this article.