"O'Brien's record as manager and operator is well respected by the investment community and we believe he will effect positive change at Sun Bancorp over the long term," Stern Agee said.
TheStreet Ratings team rates SUN BANCORP INC/NJ as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate SUN BANCORP INC/NJ (SNBC) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- SUN BANCORP INC/NJ reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, SUN BANCORP INC/NJ continued to lose money by earning -$0.11 versus -$0.59 in the prior year. This year, the market expects an improvement in earnings ($0.01 versus -$0.11).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 67.1% when compared to the same quarter one year prior, rising from -$24.96 million to -$8.21 million.
- The gross profit margin for SUN BANCORP INC/NJ is currently very high, coming in at 81.15%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -27.15% is in-line with the industry average.
- SNBC has underperformed the S&P 500 Index, declining 6.38% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- Net operating cash flow has significantly decreased to -$142.54 million or 700.36% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full analysis from the report here: SNBC Ratings Report