This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

10 Bank Stocks in the M&A Crosshairs (Update 2)

5. Guaranty Bancorp

Shares of Guaranty Bancorp (GBNK) of Denver closed at $1.75 Friday, returning 24% over the previous year.

The company was originally mentioned as a takeout candidate by FBR analyst Brett Scheiner in early 2011. Scheiner now says that "the company continues to improve operating results, though an impressive return on equity seems allusive." On the likelihood of a near-term takeout, the analyst says "it would seem in the next six months they can create more value by continuing operations of the bank."

Guaranty reported a 2011 loss to common shareholders of $13.4 million, or 21 cents a share, narrowing from a loss of $37.0 million, or 72 cents a share, in 2010, with the provision for loan losses declining to $5 million in 2010 from $34.4 million, a year earlier.

Fourth-quarter earnings to common shareholders were $2.3 million, or two cents a shares, compared to a loss of $22.6 million, or 44 cents a share, in the fourth quarter of 2010.

The shares trade for 1.1 times tangible book value, according to HighlineFI, and for 28 times the consensus 2012 EPS estimate of six cents.

Roth Capital Partners analyst Dave King has a neutral rating on Guaranty Bancorp, with a price target of $1.75, saying on Feb. 6 that the company's fourth quarter "exceeded expectations on a stronger margin and a resumption in loan growth," with the net interest margin increasing by "24 basis points sequentially to 3.86% after last quarter's early repayment of $51.0M in Federal Home Loan Bank borrowings and due to the continued runoff of brokered time deposits."

Interested in more on Guaranty Bancorp? See TheStreet Ratings' report card for this stock.

7 of 11

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
BXS $24.24 -1.18%
COF $80.44 -1.73%
FNFG $8.86 -1.66%
FMBI $17.19 -0.81%
MBFI $30.44 -0.72%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs