Associated Banc (NYSE:ASB) has announced a significant share buyback program, intending to repurchase up to $100 million of its outstanding stock. The decision, made by the bank’s board on January 27, 2024, allows for the reacquisition of approximately 2.2% of its shares through open market transactions. This move is typically viewed as a sign that management believes the company’s shares are undervalued.
On January 31, 2024, Associated Banc’s stock opened at $26.74. Over the past year, the company has experienced a low of $18.32 and a high of $28.02. With a market capitalization of $4.44 billion, the bank boasts a price-to-earnings ratio of 9.65 and a price/earnings to growth (P/E/G) ratio of 0.73. The stock’s fifty-day moving average stands at $26.32, while its two-hundred-day moving average is $25.81.
In its most recent earnings report, released on January 22, 2024, Associated Banc exceeded analysts’ expectations by posting earnings per share of $0.80, which was $0.11 above the consensus estimate of $0.69. The firm’s revenue for the quarter was $393.52 million, surpassing analyst projections of $382.06 million. This performance marked a notable increase from the $0.72 earnings per share reported in the same quarter the previous year. Analysts now anticipate an earnings per share of 2.43 for the current fiscal year.
Industry analysts have reacted positively to the announcement. Piper Sandler raised its price target on Associated Banc from $27.00 to $30.00, maintaining a “neutral” rating. Similarly, Truist Financial increased their target price from $29.00 to $30.00 while issuing a “hold” rating. Raymond James Financial reiterated an “outperform” rating, also raising their price objective to $30.00 from $29.00. The Royal Bank of Canada and UBS Group have also adjusted their ratings in favor of Associated Banc, providing a consensus rating of “Hold” with an average target price of $29.20.
In addition to corporate strategies, insider transactions have been notable. Executive Vice President Patrick Edward Ahern sold 30,489 shares at an average price of $25.70 on December 4, 2023, totaling approximately $783,567.30. Following this sale, Ahern’s remaining stake is valued at around $618,213.50. Another insider, EVP John A. Utz, sold 2,135 shares on December 9, 2023, for about $56,385.35. In the last 90 days, insiders have sold a total of 35,951 shares, valued at $925,756, leaving corporate insiders with 1.10% of the stock.
Based in Green Bay, Wisconsin, Associated Banc-Corp operates through its primary subsidiary, Associated Bank, N.A. The bank offers a range of financial services across more than 200 branches in the Midwest. Its offerings include checking and savings accounts, residential mortgages, home equity lines of credit, auto financing, and credit card products. The bank prides itself on community-focused banking solutions, emphasizing personalized service and regional decision-making.
As Associated Banc moves forward with its buyback plan, analysts and investors alike will be watching closely to gauge the potential impact on the company’s stock performance and overall market position.
