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Zions Bancorp stock hits 52-week high of $56 amid banking rally

Published 06/11/2024, 14:48
Updated 06/11/2024, 14:53
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Zions Bancorporation (NASDAQ:ZION) stock reached a 52-week high of $56.00, marking a significant milestone in the company's recent performance. This peak reflects a robust rally in the banking sector, buoyed by favorable economic indicators and investor confidence. Over the past year, Zions Bancorp has witnessed an impressive 52.55% change in its stock price, underscoring the strong momentum the company has maintained throughout the period. Investors have shown increased interest in the regional bank's shares, as the company continues to capitalize on strategic growth initiatives and a supportive financial environment.

In other recent news, Zions Bancorporation declared a regular quarterly dividend for its shareholders, including a dividend of $0.43 per common share and regular quarterly cash dividends on its perpetual preferred shares. This recent development is part of the company's commitment to delivering value to its shareholders. In addition, several financial firms, including Keefe, Bruyette & Woods, Piper Sandler, RBC Capital Markets, Baird, and Stephens, have revised their stock targets for Zions Bancorp upwards, citing the bank's strong financial performance and positive operating leverage expected by 2025.

Zions Bancorp reported an impressive operating earnings per share (EPS) of $1.36, surpassing the consensus estimate of $1.17. The bank's successful third-quarter earnings were marked by higher revenues and reduced expenses, leading to a net earnings increase to $204 million. The bank also reported modest growth in loans and improvements in customer deposits, particularly non-interest-bearing deposits.

In addition to the robust earnings report, Zions Bancorp has plans to acquire four FirstBank branches in California, pending regulatory approval. Analysts predict stable to slightly increasing loan growth and a 1.4% increase in net interest income in Q3 2025. These recent developments provide insights into Zions Bancorp's financial health and future prospects.

InvestingPro Insights

Zions Bancorporation's recent performance is further illuminated by key metrics from InvestingPro. The company's market capitalization stands at $8.51 billion, reflecting its substantial presence in the regional banking sector. With a P/E ratio of 11.7, Zions appears to be trading at a reasonable valuation compared to industry peers.

InvestingPro Tips highlight Zions' commitment to shareholder value, noting that the company has raised its dividend for 12 consecutive years and has maintained dividend payments for an impressive 54 consecutive years. This consistent dividend policy aligns with the company's strong financial position and may contribute to investor confidence.

The stock's recent performance is also noteworthy, with InvestingPro data showing a remarkable 58.55% total return over the past year. This aligns closely with the 52.55% change mentioned in the article, confirming the stock's robust momentum. Additionally, Zions is currently trading near its 52-week high, with the price at 96.6% of its peak, further supporting the article's observation of the stock reaching new heights.

For investors seeking more comprehensive insights, InvestingPro offers 8 additional tips on Zions Bancorporation, providing a deeper analysis of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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