South Atlantic Bancshares, Inc. (SABK) shares rallied 9.1% in the last trading session to close at $15.98. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 7.3% loss over the past four weeks.
Shares of South Atlantic Bancshares rallied for the fourth straight trading session yesterday. The bank announced a new stock repurchase program. The company’s board of directors authorized buyback of up to 378,613 of the outstanding shares. Hence, investors turned optimistic toward SABK stock, driving it higher.
This company is expected to post quarterly earnings of $0.45 per share in its upcoming report, which represents a year-over-year change of +50%. Revenues are expected to be $14.9 million, up 25% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For South Atlantic Bancshares, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on SABK going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
South Atlantic Bancshares is part of the Zacks Banks - Southeast industry. United Community Banks (UCB), another stock in the same industry, closed the last trading session 2.2% lower at $29.17. UCB has returned 0.2% in the past month.
For United Community Banks
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South Atlantic Bancshares, Inc. (SABK): Free Stock Analysis Report United Community Banks, Inc. (UCB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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