Strength Seen in First Financial (FFNW): Can Its 48.0% Jump Turn into More Strength?
First Financial Northwest (FFNW) shares ended the last trading session 48% higher at $20.25. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 7.3% gain over the past four weeks.
Shares of First Financial Northwest touched a 52-week high of $22.17 in response to the news of its acquisition by Global Federal Credit Union in the all-cash deal worth $231.2 million. FFNW expects its shareholders to receive nearly $23.18 to $23.75 per share upon liquidation, subject to certain adjustments.
The transaction, structured as a purchase and assumption agreement, is still subject to receiving all regulatory approvals, approval by the shareholders of First Financial Northwest and other customary closing conditions. The deal is expected to close in the fourth quarter.
This bank is expected to post quarterly earnings of $0.14 per share in its upcoming report, which represents a year-over-year change of -60%. Revenues are expected to be $10.26 million, down 22% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For First Financial, 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 FFNW going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
First Financial is part of the Zacks Banks - West industry. Cathay General (CATY), another stock in the same industry, closed the last trading session 0.9% lower at $42.98. CATY has returned 2.9% in the past month.
Cathay's consensus EPS estimate for the upcoming report has changed -0.3% over the past month to $1.10. Compared to the company's year-ago EPS, this represents a change of -17.3%. Cathay currently boasts a Zacks Rank of #4 (Sell).
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