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Stifel Closes City Financial Buyout: More Deals in Store?
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Earlier this week, Stifel Financial Corp. (SF - Free Report) completed the acquisition of Indiana-based City Financial Corporation, and its wholly owned subsidiary, City Securities Corporation. The transaction, with no financial terms disclosed, was announced in Sep 2016. Nonetheless, City Financial’s other two wholly owned subsidiaries – City Securities Insurance, LLC and City Real Estate Advisors – were not part of this deal.
Following this transaction, Stifel will be able to strengthen its global wealth management and public finance operations. City Securities Corporation, with nearly 40 private client advisors in eight offices in Indiana, manages around $4 billion in client assets. Further, its public finance group is one of the leading underwriters of Indiana municipal bond issues.
Overall, bullish market trends and the deal closure largely drove the company’s shares 2.3% upward to close the day at $51.10 (almost close to its 52-week high of $52.88 per share). Notably, Stifel has been on an acquisition spree over the last few years. Some of the major buys being Sterne Agee Group, Inc. and Barclays PLC’s (BCS - Free Report) Wealth and Investment Management unit in the U.S.
All these acquisitions have enhanced Stifel’s profitability and diversified its revenue sources. Moreover, we don’t expect Stifel to stop buying out undervalued, profitable entities across the globe. With a strong balance sheet position, the company is well positioned to continue expanding inorganically, going forward.
In addition, Stifel should benefit from the recent rate hike as well as overall stability of the domestic economy. Over the long-term, the company’s earnings are expected to grow at the rate of 12%, ensuring continuation of profitability trend.
Further, over the last six months, Stifel's shares surged 73.2%, outperforming the Zacks categorized Investment Brokerage industry’s gain of 62.5%.
Other firms in the same industry worth a look include E*TRADE Financial Corporation and The Charles Schwab Corporation (SCHW - Free Report) , both sporting the same Zacks Rank as Stifel.
E*TRADE has witnessed an upward earnings estimate revision of 2.2% for 2016, over the past 30 days. Over the last six months, its share price is up 61.1%.
For 2016, over the past 30 days, Schwab’s Zacks Consensus Estimate has been revised 1.6% upward. Its share price has increased 69.4%, over the last six months.
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Stifel Closes City Financial Buyout: More Deals in Store?
Earlier this week, Stifel Financial Corp. (SF - Free Report) completed the acquisition of Indiana-based City Financial Corporation, and its wholly owned subsidiary, City Securities Corporation. The transaction, with no financial terms disclosed, was announced in Sep 2016. Nonetheless, City Financial’s other two wholly owned subsidiaries – City Securities Insurance, LLC and City Real Estate Advisors – were not part of this deal.
Following this transaction, Stifel will be able to strengthen its global wealth management and public finance operations. City Securities Corporation, with nearly 40 private client advisors in eight offices in Indiana, manages around $4 billion in client assets. Further, its public finance group is one of the leading underwriters of Indiana municipal bond issues.
Overall, bullish market trends and the deal closure largely drove the company’s shares 2.3% upward to close the day at $51.10 (almost close to its 52-week high of $52.88 per share). Notably, Stifel has been on an acquisition spree over the last few years. Some of the major buys being Sterne Agee Group, Inc. and Barclays PLC’s (BCS - Free Report) Wealth and Investment Management unit in the U.S.
All these acquisitions have enhanced Stifel’s profitability and diversified its revenue sources. Moreover, we don’t expect Stifel to stop buying out undervalued, profitable entities across the globe. With a strong balance sheet position, the company is well positioned to continue expanding inorganically, going forward.
In addition, Stifel should benefit from the recent rate hike as well as overall stability of the domestic economy. Over the long-term, the company’s earnings are expected to grow at the rate of 12%, ensuring continuation of profitability trend.
Further, over the last six months, Stifel's shares surged 73.2%, outperforming the Zacks categorized Investment Brokerage industry’s gain of 62.5%.
Currently, Stifel sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Other firms in the same industry worth a look include E*TRADE Financial Corporation and The Charles Schwab Corporation (SCHW - Free Report) , both sporting the same Zacks Rank as Stifel.
E*TRADE has witnessed an upward earnings estimate revision of 2.2% for 2016, over the past 30 days. Over the last six months, its share price is up 61.1%.
For 2016, over the past 30 days, Schwab’s Zacks Consensus Estimate has been revised 1.6% upward. Its share price has increased 69.4%, over the last six months.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>