This Day On The Street
Continue to site
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

7 Cheapest Bank Takeout Target Stocks From KBW (Update 2)

5. Sierra Bancorp

Shares of Sierra Bancorp (BSRR - Get Report) of Porterville, Calif., closed at $9.04 Friday, returning 4% year-to-date, following a 16% decline during 2011. Based on a quarterly payout of six cents, the shares have a dividend yield of 2.65%.

The shares trade for 77% of tangible book value, and for 12 times the consensus 2013 earnings estimate of 70 cents. The consensus 2012 EPS estimate is 55 cents.

Sierra Bancorp had $1.3 billion in total assets as of March 31. The company reported first-quarter earnings of $1.9 million, or 13 cents a share, increasing from $1.5 million, or 11 cents a share, in the fourth quarter, and $1.5 million, or 11 cents a share, in the first quarter of 2011. The fourth quarter results included "$2.529 million in write-downs on other real estate owned (OREO), and a $1.370 million other-than-temporary impairment (OTTI) charge against equity investment securities which was offset by $1.660 million in gains taken on the sale of mortgage-backed securities," according to the company."

The year-over-year earnings improvement reflected a decline in the provision for loan losses to $2.8 million from $3.6 million. The company's ROA has ranged from 0.46% to 0.75% over the past five quarters, according to Thomson Reuters Bank Insight. The company's ratio of nonperforming assets to total assets was a rather high 7.69% as of March 31.

KBW analyst Jacquelynne Chimera on May 23 upgraded Sierra Bancorp to "Outperform," with a $12 price target, saying the discount to book value for the shares -- closing at $8.59 that day -- was not warranted "given the company's core income generation capabilities," adding that "Sierra pays a cash dividend, while the majority of its peers do not."

Interested in more on Sierra Bancorp? See TheStreet Ratings' report card for this stock.
4 of 8

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
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
LNBB $19.38 0.00%
FFKY $3.90 0.00%
AF $14.64 0.00%
BANR $38.14 0.00%
BSRR $17.46 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs