Metropolitan Bank Holding Corp. (MCB) Soars 33.6%: Is Further Upside Left in the Stock?
Metropolitan Bank Holding Corp. (MCB) shares rallied 33.6% in the last trading session to close at $33.89. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 54.3% loss over the past four weeks.
After plummeting nearly 28% the previous day, shares of Metropolitan Bank Holding rebounded on the back of issuance of an update on current financials. While there has been growing concerns among the investors about deposit runs, the company noted that total deposits grew 5.4% between the end of 2022 and Mar 29, 2023 and 66% of these are insured. Also, MCB’s liquidity position remains robust, with capacity to cover 170% of uninsured deposits.
Additionally, Metropolitan Bank Holding said that its previously announced plan to exit from the crypto vertical (not included in total core deposit above) is almost complete. As of Mar 29, 2023, crypto-related deposits accounted for only 4% of total deposits. MCB anticipates these deposits to be almost nil by the end of the second quarter of 2023.
This company is expected to post quarterly earnings of $1.96 per share in its upcoming report, which represents a year-over-year change of +16%. Revenues are expected to be $65.94 million, up 22% 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 Metropolitan Bank Holding Corp., 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 MCB 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 >>>>
Metropolitan Bank Holding Corp. belongs to the Zacks Banks - Northeast industry. Another stock from the same industry, Bank First Corporation (BFC), closed the last trading session 2.9% higher at $73.58. Over the past month, BFC has returned -10.2%.
Bank First Corporation's consensus EPS estimate for the upcoming report has changed -1.4% over the past month to $1.45. Compared to the company's year-ago EPS, this represents a change of +8.2%. Bank First Corporation currently boasts a Zacks Rank of #2 (Buy).
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