Byline Bancorp (NYSE:BY) announced on December 11, 2023, that its Board of Directors has approved a stock buyback program amounting to $2.25 million. This program allows the company to repurchase up to 0.2% of its outstanding shares through open market transactions, which typically signals that management views the stock as undervalued.
In the wake of this announcement, shares of Byline Bancorp opened at $30.74 on December 12. The company boasts a market capitalization of $1.41 billion, a price-to-earnings ratio of 10.94, and a beta of 0.86, indicating lower volatility compared to the market. Over the past year, the stock has fluctuated between a low of $22.63 and a high of $31.48. As of the announcement, the business’s fifty-day moving average stood at $27.65, while the two-hundred-day moving average was $27.46.
Recent Financial Performance and Analyst Ratings
Byline Bancorp reported its most recent quarterly earnings on June 6, 2023. The firm achieved earnings per share (EPS) of $0.57 and generated revenue of $72.38 million. The company recorded a return on equity of 11.26% and a net margin of 20.01%. Analysts project that Byline Bancorp will post an EPS of 2.6 for the current fiscal year.
Several analysts have recently adjusted their forecasts for Byline Bancorp. Keefe, Bruyette & Woods raised their target price from $31.00 to $32.00 while maintaining a “market perform” rating. Similarly, Piper Sandler increased its price objective from $34.00 to $35.00, assigning an “overweight” rating. Weiss Ratings has also reaffirmed a “buy (B-)” rating for the stock. Currently, three analysts rate the stock as a Buy, while two have issued Hold ratings. According to MarketBeat.com, Byline Bancorp has an average rating of “Moderate Buy” and an average price target of $33.25.
Insider Activity and Company Overview
In related developments, insider Thomas Abraham sold 23,400 shares of Byline Bancorp on October 28, 2023. The shares were sold at an average price of $26.89, resulting in a total transaction value of $629,226.00. Following this sale, Abraham’s holdings decreased by 37.57%, leaving him with 38,882 shares valued at approximately $1,045,536.98. This transaction was disclosed in a filing with the U.S. Securities and Exchange Commission (SEC).
Corporate insiders currently own 28.79% of Byline Bancorp’s stock, reflecting significant internal investment in the company.
Byline Bancorp operates as the bank holding company for Byline Bank, which provides a range of banking products and services tailored for small and medium-sized enterprises, commercial real estate, and consumers throughout the United States. Their offerings include various retail deposit products, ATM and debit cards, as well as online and mobile banking services.
The approval of the stock buyback program marks a strategic move by Byline Bancorp, potentially enhancing shareholder value as the company seeks to optimize its capital structure and reinforce its commitment to investors.
