United Community Banks (NYSE:UCB) Shares Gap Down After Earnings Miss

United Community Banks, Inc. (NYSE:UCB)’s share price gapped down before the market opened on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $32.48, but opened at $31.33. United Community Banks shares last traded at $32.6050, with a volume of 69,291 shares.

The company reported $0.71 earnings per share for the quarter, missing the consensus estimate of $0.73 by ($0.02). United Community Banks had a net margin of 20.67% and a return on equity of 9.42%. During the same period last year, the business posted $0.61 earnings per share. The firm’s quarterly revenue was up 11.0% on a year-over-year basis.

United Community Banks Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, January 5th. Shareholders of record on Monday, December 15th were issued a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 3.0%. The ex-dividend date was Monday, December 15th. United Community Banks’s dividend payout ratio (DPR) is 39.68%.

United Community Banks declared that its board has authorized a stock buyback plan on Monday, December 8th that allows the company to buyback $100.00 million in shares. This buyback authorization allows the company to repurchase up to 2.6% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s management believes its stock is undervalued.

Analyst Ratings Changes

Separately, Weiss Ratings reiterated a “hold (c+)” rating on shares of United Community Banks in a research report on Wednesday, October 8th. Three analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $35.40.

Insiders Place Their Bets

In other United Community Banks news, EVP Richard Bradshaw sold 1,654 shares of the company’s stock in a transaction dated Monday, October 27th. The shares were sold at an average price of $30.23, for a total value of $50,000.42. Following the transaction, the executive vice president directly owned 75,226 shares in the company, valued at approximately $2,274,081.98. This represents a 2.15% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.43% of the company’s stock.

Hedge Funds Weigh In On United Community Banks

Several institutional investors and hedge funds have recently modified their holdings of UCB. Norges Bank purchased a new stake in United Community Banks in the 2nd quarter worth approximately $42,061,000. Wellington Management Group LLP boosted its holdings in shares of United Community Banks by 125.7% during the third quarter. Wellington Management Group LLP now owns 774,660 shares of the company’s stock worth $24,286,000 after purchasing an additional 431,491 shares during the last quarter. Azora Capital LP purchased a new stake in shares of United Community Banks in the third quarter valued at $13,423,000. Qube Research & Technologies Ltd increased its stake in United Community Banks by 105.9% in the third quarter. Qube Research & Technologies Ltd now owns 766,552 shares of the company’s stock valued at $24,031,000 after purchasing an additional 394,263 shares during the last quarter. Finally, Hotchkis & Wiley Capital Management LLC purchased a new position in United Community Banks during the third quarter worth about $6,281,000. Hedge funds and other institutional investors own 82.29% of the company’s stock.

United Community Banks Trading Up 2.6%

The company has a current ratio of 0.80, a quick ratio of 0.80 and a debt-to-equity ratio of 0.04. The stock has a market capitalization of $4.05 billion, a price-to-earnings ratio of 13.23 and a beta of 0.83. The business has a 50 day simple moving average of $31.41 and a 200-day simple moving average of $31.34.

United Community Banks Company Profile

United Community Banks, Inc (NYSE: UCB) is a bank holding company headquartered in Blairsville, Georgia. It operates primarily through its subsidiary, United Community Bank, providing a broad range of banking and financial services to individual, business and governmental customers. The company’s core offerings include deposit accounts, commercial and consumer lending, mortgage origination, treasury and cash management services, and wealth management.

In addition to traditional banking products such as checking, savings and money market accounts, United Community Bank specializes in commercial real estate financing, small business administration (SBA) loans, equipment financing and agricultural lending.