Byline Bancorp (NYSE: BY) announced on December 11, 2023, that its Board of Directors has approved a stock buyback program worth $2.25 million. This initiative allows the company to repurchase up to 0.2% of its outstanding shares through open market transactions. Such buyback programs typically indicate that a company’s management believes its stock is undervalued, a sentiment that could positively impact investor confidence.
Current Stock Performance and Financial Overview
On December 11, shares of Byline Bancorp opened at $30.74. The bank holding company currently holds a market capitalization of approximately $1.41 billion, with a price-to-earnings (PE) ratio of 10.94 and a beta of 0.86. Over the past year, the stock has experienced a 52-week low of $22.63 and a high of $31.48. The fifty-day moving average stands at $27.65, while the 200-day moving average is at $27.46.
Byline Bancorp recently released its quarterly earnings on June 6, 2023, reporting earnings per share (EPS) of $0.57 and revenue of $72.38 million for the quarter. The company also achieved a return on equity of 11.26% and a net margin of 20.01%. Analysts forecast an EPS of 2.6 for the current fiscal year, indicating optimism about the company’s future performance.
Analysts’ Ratings and Price Target Adjustments
Recent assessments from equity analysts show a generally positive outlook for Byline Bancorp shares. Keefe, Bruyette & Woods raised their target price for the stock from $31.00 to $32.00, assigning it a “market perform” rating on October 27, 2023. Meanwhile, Piper Sandler increased its price objective from $34.00 to $35.00, giving the stock an “overweight” rating on October 28, 2023. Weiss Ratings also reaffirmed a “buy (B-)” rating for Byline Bancorp on October 8, 2023.
Currently, three investment analysts have assigned a Buy rating to the stock, while two have issued Hold ratings. According to MarketBeat.com, Byline Bancorp holds an average rating of “Moderate Buy” with a target price of $33.25.
In related news, insider Thomas Abraham sold 23,400 shares of Byline Bancorp on October 28, 2023, at an average price of $26.89, totaling approximately $629,226. Following this transaction, Abraham retained 38,882 shares valued at about $1,045,536. This sale represents a 37.57% decrease in his ownership of the company’s stock. The transaction was reported in a filing with the Securities and Exchange Commission (SEC).
Corporate insiders currently own approximately 28.79% of Byline Bancorp’s stock, which reflects a significant level of insider investment.
Byline Bancorp serves as the bank holding company for Byline Bank, providing various banking products and services to small and medium-sized businesses, commercial real estate, and consumers across the United States. The company offers a range of retail deposit products, including non-interest-bearing accounts, savings accounts, and time deposits, as well as online and mobile banking services.
As the stock buyback program unfolds, investors and analysts will be closely watching how this decision influences Byline Bancorp’s stock performance and overall market perception.
