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Here's How Much a $1000 Investment in Bank OZK Made 10 Years Ago Would Be Worth Today
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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Bank OZK (OZK - Free Report) ten years ago? It may not have been easy to hold on to OZK for all that time, but if you did, how much would your investment be worth today?
Bank OZK's Business In-Depth
With that in mind, let's take a look at Bank OZK's main business drivers.
Headquartered in Little Rock, AR, Bank OZK was incorporated in 1981 and is a bank holding company registered under the Bank Holding Company Act of 1956. The company was formerly known as Bank of the Ozarks and changed its name to the current one in July 2018.
Bank OZK conducts operations through more than 240 offices in states, including Arkansas, Georgia, Florida, North Carolina, Texas, California, New York and Mississippi.
Bank OZK offers a wide range of retail and commercial banking services to businesses, individuals, and non-profit and governmental entities. Despite providing a wide variety of products and services, the company operates through only one segment – Community Banking.
Since its inception, Bank OZK has achieved substantial growth through a combination of organic growth initiatives and acquisitions. In 2015, Bank OZK acquired Intervest Bancshares Corporation and Bank of the Carolinas Corporation. In 2016, the company acquired Community & Southern Holdings Inc. and C1 Financial Inc.
In 2020, Bank OZK exited the Alabama market as it wasn't able to operate efficiently with just two branches in the state. It also exited the South Carolina market by selling two branches. Further, the company has closed a few branches in Arkansas, Florida, Georgia and the only deposit-taking branch in New York.
As of Jun 30, 2022, Bank OZK had total assets of $25.9 billion, net loans of $18.6 billion, total deposits of $20 billion and stockholders’ equity of $4.6 billion.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Bank OZK ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in October 2012 would be worth $2,679.22, or a gain of 167.92%, as of October 19, 2022, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 155.26% and gold's return of -7.92% over the same time frame.
Looking ahead, analysts are expecting more upside for OZK.
Bank OZK’s shares have outperformed the industry over the past year. The company has an impressive earnings surprise history. The company's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters. Bank OZK’s business restructuring and branch consolidation initiatives, along with solid loan balances, are expected to keep aiding top-line growth. Higher interest rates will likely aid margin growth in the near term. However, operating expenses might remain elevated on the back of the company’s efforts to improve technology and continued investments in franchise, thus, hurting profits. Moreover, the company’s exposure to risky loans makes us apprehensive. Nevertheless, given a solid liquidity position, the company is expected to sustain efficient capital deployments, thus, enhancing shareholder value.
The stock is up 5.13% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2022. The consensus estimate has moved up as well.
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Here's How Much a $1000 Investment in Bank OZK Made 10 Years Ago Would Be Worth Today
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Bank OZK (OZK - Free Report) ten years ago? It may not have been easy to hold on to OZK for all that time, but if you did, how much would your investment be worth today?
Bank OZK's Business In-Depth
With that in mind, let's take a look at Bank OZK's main business drivers.
Headquartered in Little Rock, AR, Bank OZK was incorporated in 1981 and is a bank holding company registered under the Bank Holding Company Act of 1956. The company was formerly known as Bank of the Ozarks and changed its name to the current one in July 2018.
Bank OZK conducts operations through more than 240 offices in states, including Arkansas, Georgia, Florida, North Carolina, Texas, California, New York and Mississippi.
Bank OZK offers a wide range of retail and commercial banking services to businesses, individuals, and non-profit and governmental entities. Despite providing a wide variety of products and services, the company operates through only one segment – Community Banking.
Since its inception, Bank OZK has achieved substantial growth through a combination of organic growth initiatives and acquisitions. In 2015, Bank OZK acquired Intervest Bancshares Corporation and Bank of the Carolinas Corporation. In 2016, the company acquired Community & Southern Holdings Inc. and C1 Financial Inc.
In 2020, Bank OZK exited the Alabama market as it wasn't able to operate efficiently with just two branches in the state. It also exited the South Carolina market by selling two branches. Further, the company has closed a few branches in Arkansas, Florida, Georgia and the only deposit-taking branch in New York.
As of Jun 30, 2022, Bank OZK had total assets of $25.9 billion, net loans of $18.6 billion, total deposits of $20 billion and stockholders’ equity of $4.6 billion.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Bank OZK ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in October 2012 would be worth $2,679.22, or a gain of 167.92%, as of October 19, 2022, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 155.26% and gold's return of -7.92% over the same time frame.
Looking ahead, analysts are expecting more upside for OZK.
Bank OZK’s shares have outperformed the industry over the past year. The company has an impressive earnings surprise history. The company's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters. Bank OZK’s business restructuring and branch consolidation initiatives, along with solid loan balances, are expected to keep aiding top-line growth. Higher interest rates will likely aid margin growth in the near term. However, operating expenses might remain elevated on the back of the company’s efforts to improve technology and continued investments in franchise, thus, hurting profits. Moreover, the company’s exposure to risky loans makes us apprehensive. Nevertheless, given a solid liquidity position, the company is expected to sustain efficient capital deployments, thus, enhancing shareholder value.
The stock is up 5.13% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2022. The consensus estimate has moved up as well.