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Category: Stock Market and Sandy Spring Bank
Date: 26 January 2020 Stock Price: $35.87 We take a look at the 4th quarter earnings report of their 2019 fiscal year of Sandy Spring Bancorp, the holding company of Sandy Spring Bank, the largest locally-headquartered community bank in the greater Washington DC region.
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About Sandy Spring Bancorp
Sandy Spring Bancorp, Inc., (Nasdaq: SASR) is the holding company for Sandy Spring Bank, the largest locally-headquartered community bank in the Greater Washington, D.C. region. The bank has received numerous recognitions and awards over the course of its history, including most recently being named as a Top Workplace by The Washington Post and a Best-In-State Bank by Forbes.
Sandy Spring Bank started as a community bank over 150 years ago, and is committed to continuing to add value to the communities it serves by enriching the lives of its clients, employees and shareholders. The bank has created a unique culture that truly values its employees and encourages them to become lifelong advocates for its clients. Sandy Spring Bank is not about deals and transactions but rather lifelong relationships. With a long-standing reputation for outstanding client service, the bank is committed to superior financial performance to enhance long-term shareholder value as the means to remain independent and thus serve the local community most beneficially. You can learn more about the bank’s commitment to the community here.
With over 50 locations, the bank offers a broad range of commercial and retail banking, mortgage, private banking, and trust services throughout Maryland, Northern Virginia, and Washington, D.C. Through its subsidiaries, Sandy Spring Insurance Corporation and West Financial Services, Inc., Sandy Spring Bank also offers a comprehensive menu of insurance and wealth management services. The bank offers online and mobile banking products for businesses and individuals at every stage of life, and through an affiliation with the Allpoint ATM network, clients have free nationwide ATM access at more than 55,000 locations.
Sandy Spring Bank started as a community bank over 150 years ago, and is committed to continuing to add value to the communities it serves by enriching the lives of its clients, employees and shareholders. The bank has created a unique culture that truly values its employees and encourages them to become lifelong advocates for its clients. Sandy Spring Bank is not about deals and transactions but rather lifelong relationships. With a long-standing reputation for outstanding client service, the bank is committed to superior financial performance to enhance long-term shareholder value as the means to remain independent and thus serve the local community most beneficially. You can learn more about the bank’s commitment to the community here.
With over 50 locations, the bank offers a broad range of commercial and retail banking, mortgage, private banking, and trust services throughout Maryland, Northern Virginia, and Washington, D.C. Through its subsidiaries, Sandy Spring Insurance Corporation and West Financial Services, Inc., Sandy Spring Bank also offers a comprehensive menu of insurance and wealth management services. The bank offers online and mobile banking products for businesses and individuals at every stage of life, and through an affiliation with the Allpoint ATM network, clients have free nationwide ATM access at more than 55,000 locations.
Overview of Sandy Spring Bancorp's 4th quarter 2019 earnings report
Data below refers to the latest quarters data unless specified otherwise:
- Net interest income: $65.583 million (up from $66.145 million for the same period of the previous year)
- Net interest income decreased by 1% over the last 12 months
- Noninterest Expenses: $46.081 million (up from $42.667 million for the same period of the previous year)
- Expenses increased by 8% over the last 12 months
- Net earnings: $28.457 million (up from $25.556 million for the same period of the previous year)
- Diluted earnings per share: $0.80 (up from $0.72 for the same period of the previous year)
- PE ratio of Sandy Spring Bancorp: 11.03
- Dividend declared: $0.30 (up from $0.28 for the same period of the previous year)
- Dividend yield of Sandy Spring Bancorp: 3.34%
- Diluted weighted-average shares outstanding: 35.773 million (up from 35.747 million for the same period of the previous year)
- Cash and cash equivalents: $82.469 million
- Cash and cash equivalents per share: $.2.30
- Cash and cash equivalents makes up 6.4% of Sandy Spring Bancorp' market capital
- Cash and cash equivalents makes up 9.56% of Sandy Spring Bancorp' total assets
- Goodwill in Sandy Spring Bancorp: $347.149 million
- Goodwill per share: $9.70
- Goodwill makes up 4.19% of Sandy Spring Bancorp's total assets
- Stockholders equity in Sandy Spring Bancorp: $1.132 billion
- Stockholders equity per share: $31.64
- So Sandy Spring Bancorp is trading a 1.13 times its stockholders equity which is outside the expected range of between 2 and 4 which most firms ten to trade at.
Sandy Spring's management commentary on their 4th quarter 2019 earnings report
OLNEY, Md., Jan. 23, 2020 (GLOBE NEWSWIRE) -- Sandy Spring Bancorp, Inc., (Nasdaq-SASR), the parent company of Sandy Spring Bank, today reported net income for the fourth quarter of 2019 of $28.5 million ($0.80 per diluted share) compared to net income of $25.6 million ($0.72 per diluted share) for the fourth quarter of 2018 and net income of $29.4 million ($0.82 per diluted share) for the third quarter of 2019.
“We delivered a strong financial performance in 2019, which was our first full year following the successful integration of WashingtonFirst Bank. We rose to the occasion with record results and announced another wave of strategic expansion through the acquisitions of Revere Bank and Rembert Pendleton Jackson, a registered investment advisor headquartered in Falls Church, Virginia,” said Daniel J. Schrider, President and Chief Executive Officer.
“We delivered a strong financial performance in 2019, which was our first full year following the successful integration of WashingtonFirst Bank. We rose to the occasion with record results and announced another wave of strategic expansion through the acquisitions of Revere Bank and Rembert Pendleton Jackson, a registered investment advisor headquartered in Falls Church, Virginia,” said Daniel J. Schrider, President and Chief Executive Officer.
“Throughout the year we adjusted our strategies in response to the competitive market and interest rate environment, while consistently growing deposits, delivering impressive fee-income growth, and staying laser focused on providing exceptional experiences for the individuals and businesses we serve,” added Schrider. “We finished the year on a high note and the momentum from our fourth quarter performance will serve us well in 2020.”
Sandy Spring Bancorp (NASDAQ: SASR) stock price history
The image below, obtained from Google, shows the stock price history of Sandy Spring Bancorp over the last 5 years. And it's been a pretty good time for Sandy Spring Bancorp stockholders. 5 years ago the stock was trading at around $24.80 a stock and its currently trading at $35.87 a stock. That's a decent return of 44.6% provided to Sandy Spring Bancorp stockholders over the last 5 years.
The stock of Sandy Spring Bancorp is trading at closer to its 52 week high of $38.45 than it is to its 52 week low of $29.83, which to us is an indication that the short term sentiment and momentum of Sandy Spring Bancorp stock is positive at this point in time.
The stock of Sandy Spring Bancorp is trading at closer to its 52 week high of $38.45 than it is to its 52 week low of $29.83, which to us is an indication that the short term sentiment and momentum of Sandy Spring Bancorp stock is positive at this point in time.
Recent coverage of Sandy Spring Bancorp
The extract below discusses some of the latest news regarding Sandy Spring Bancorp as obtained from Slatersentinel.com
Sandy Spring Bancorp (NASDAQ:SASR)‘s stock had its “buy” rating restated by stock analysts at G.Research in a note issued to investors on Friday, Stock Target Advisor reports. G.Research also issued estimates for Sandy Spring Bancorp’s FY2020 earnings at $3.35 EPS, FY2021 earnings at $3.70 EPS, FY2022 earnings at $3.95 EPS, FY2023 earnings at $4.25 EPS and FY2024 earnings at $4.55 EPS.
SASR has been the subject of several other research reports. Sandler O’Neill upgraded Sandy Spring Bancorp from a “hold” rating to a “buy” rating and set a $38.00 price objective for the company in a report on Thursday, September 26th. Zacks Investment Research upgraded Sandy Spring Bancorp from a “sell” rating to a “hold” rating in a report on Thursday, January 2nd. Finally, BidaskClub downgraded Sandy Spring Bancorp from a “sell” rating to a “strong sell” rating in a report on Friday. One investment analyst has rated the stock with a sell rating, one has issued a hold rating and three have given a buy rating to the stock. The company currently has an average rating of “Hold” and a consensus target price of $37.75
Read the full article here
Sandy Spring Bancorp (NASDAQ:SASR)‘s stock had its “buy” rating restated by stock analysts at G.Research in a note issued to investors on Friday, Stock Target Advisor reports. G.Research also issued estimates for Sandy Spring Bancorp’s FY2020 earnings at $3.35 EPS, FY2021 earnings at $3.70 EPS, FY2022 earnings at $3.95 EPS, FY2023 earnings at $4.25 EPS and FY2024 earnings at $4.55 EPS.
SASR has been the subject of several other research reports. Sandler O’Neill upgraded Sandy Spring Bancorp from a “hold” rating to a “buy” rating and set a $38.00 price objective for the company in a report on Thursday, September 26th. Zacks Investment Research upgraded Sandy Spring Bancorp from a “sell” rating to a “hold” rating in a report on Thursday, January 2nd. Finally, BidaskClub downgraded Sandy Spring Bancorp from a “sell” rating to a “strong sell” rating in a report on Friday. One investment analyst has rated the stock with a sell rating, one has issued a hold rating and three have given a buy rating to the stock. The company currently has an average rating of “Hold” and a consensus target price of $37.75
Read the full article here
Sandy Spring Bancorp (NASDAQ: SASR) latest stock valuation
So what is Sandy Spring Bancorp stock worth based on the release of their latest earnings report? Based on Sandy Spring Bancorp' latest earnings report our valuation models provide a target (full value) price for Sandy Spring Bancorp stock at $38.90 a stock. Therefore we believe the stock of Sandy Spring Bancorp is undervalued at its current price of $35.87
We usually recommend that long term fundamental or value investors look to enter the stock at 10% below our target (full value) price which in this case is $38.90, so a good entry point into Sandy Spring Bancorp' stock would be at $35 or below.
We expect the stock of Sandy Spring Bancorp to tick up in coming weeks and months to levels closer to our target price (full value price).
We usually recommend that long term fundamental or value investors look to enter the stock at 10% below our target (full value) price which in this case is $38.90, so a good entry point into Sandy Spring Bancorp' stock would be at $35 or below.
We expect the stock of Sandy Spring Bancorp to tick up in coming weeks and months to levels closer to our target price (full value price).
Next earnings release date for Sandy Spring Bancorp
It is expected that Sandy Spring Bancorp will release their 4th quarter 2019 earnings report will be released in late January 2020