Cambridge (CATC) Soars 26.6%: Is Further Upside Left in the Stock?
Cambridge (CATC) shares soared 26.6% in the last trading session to close at $61.50. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 8.4% loss over the past four weeks.
Cambridge announced signing of a merger deal with Eastern Bankshares, Inc. EBC. The all-tock deal, valued at almost $528 million, will create a $27 billion combined franchise. This will further solidify Eastern Bankshares’ position as the largest community bank in Massachusetts and New Hampshire by deposits.
Upon completion of the merger (expected during the first quarter of 2024), the combined bank is likely to have roughly $27.1 billion in total assets, $18.0 billion of total loans, $22.6 billion of deposits and $7.6 billion of assets under management and administration.
This bank is expected to post quarterly earnings of $1.06 per share in its upcoming report, which represents a year-over-year change of -49.3%. Revenues are expected to be $38.2 million, down 18.2% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Cambridge, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on CATC going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Cambridge is part of the Zacks Banks - Northeast industry. Metropolitan Bank Holding Corp. (MCB), another stock in the same industry, closed the last trading session 2.2% lower at $34.78. MCB has returned -13.6% in the past month.
For Metropolitan Bank Holding Corp. , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.84. This represents a change of -17.5% from what the company reported a year ago. Metropolitan Bank Holding Corp. currently has a Zacks Rank of #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Cambridge Bancorp (CATC) : Free Stock Analysis Report
Eastern Bankshares, Inc. (EBC) : Free Stock Analysis Report
Metropolitan Bank Holding Corp. (MCB) : Free Stock Analysis Report
