NEW YORK (TheStreet) -- Shares of Bank of Kentucky Financial (BKYF) surged to a 52-week high of $46.70 on Monday after BB&T (BBT) agreed to purchase the bank for $363 million in a cash-and-stock deal.
Bank of Kentucky Financial shareholders will receive 1.0126 BB&T shares and $9.40 in cash for each BKYF share.
The acquisition comes days after BB&T agreed to acquire 41 Texas branches from Citigroup (C) as BB&T expands into new geographic regions.
"We are extremely excited to welcome our new clients and associates in these vibrant markets to BB&T. The Bank of Kentucky's dedication to community investment and disciplined approach to business are a perfect fit with BB&T's culture," said chairman and CEO Kelly S. King in a statement.
Bank of Kentucky Financial stock was up 28% to $46.40 at 2:42 p.m.
Separately, TheStreet Ratings team rates BANK KY FINANCIAL CORP as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate BANK KY FINANCIAL CORP (BKYF) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, increase in net income, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 12.9%. Since the same quarter one year prior, revenues slightly increased by 3.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 33.79% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, BKYF should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The gross profit margin for BANK KY FINANCIAL CORP is currently very high, coming in at 90.10%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 23.67% is above that of the industry average.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Commercial Banks industry average. The net income increased by 12.9% when compared to the same quarter one year prior, going from $4.49 million to $5.07 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, BANK KY FINANCIAL CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- You can view the full analysis from the report here: BKYF Ratings Report
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