Morgan Stanley Maintains Bank OZK (OZK) Equal-Weight Recommendation

Fintel reports that on September 27, 2023, Morgan Stanley maintained coverage of Bank OZK (NASDAQ:OZK) with a Equal-Weight recommendation.

Analyst Price Forecast Suggests 27.85% Upside

As of August 31, 2023, the average one-year price target for Bank OZK is 46.41. The forecasts range from a low of 35.35 to a high of $61.95. The average price target represents an increase of 27.85% from its latest reported closing price of 36.30.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Bank OZK is 1,398MM, an increase of 9.90%. The projected annual non-GAAP EPS is 5.26.

Bank OZK Declares $0.36 Dividend

On July 3, 2023 the company declared a regular quarterly dividend of $0.36 per share ($1.44 annualized). Shareholders of record as of July 14, 2023 received the payment on July 21, 2023. Previously, the company paid $0.35 per share.

At the current share price of $36.30 / share, the stock's dividend yield is 3.97%.

Looking back five years and taking a sample every week, the average dividend yield has been 3.38%, the lowest has been 2.17%, and the highest has been 6.60%. The standard deviation of yields is 0.79 (n=236).

The current dividend yield is 0.74 standard deviations above the historical average.

Additionally, the company's dividend payout ratio is 0.26. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company's 3-Year dividend growth rate is 0.32%, demonstrating that it has increased its dividend over time.

What is the Fund Sentiment?

There are 743 funds or institutions reporting positions in Bank OZK. This is a decrease of 77 owner(s) or 9.39% in the last quarter. Average portfolio weight of all funds dedicated to OZK is 0.26%, an increase of 18.22%. Total shares owned by institutions increased in the last three months by 2.45% to 122,495K shares. The put/call ratio of OZK is 2.97, indicating a bearish outlook.

What are Other Shareholders Doing?

Wasatch Advisors holds 7,785K shares representing 6.88% ownership of the company. In it's prior filing, the firm reported owning 8,262K shares, representing a decrease of 6.12%. The firm increased its portfolio allocation in OZK by 7.61% over the last quarter.

Fuller & Thaler Asset Management holds 5,732K shares representing 5.07% ownership of the company. In it's prior filing, the firm reported owning 4,929K shares, representing an increase of 14.01%. The firm increased its portfolio allocation in OZK by 34.54% over the last quarter.

FTHNX - Fuller & Thaler Behavioral Small-Cap Equity Fund Investor Shares holds 5,397K shares representing 4.77% ownership of the company. In it's prior filing, the firm reported owning 4,645K shares, representing an increase of 13.94%. The firm increased its portfolio allocation in OZK by 28.41% over the last quarter.

Goldman Sachs Group holds 4,314K shares representing 3.81% ownership of the company. In it's prior filing, the firm reported owning 268K shares, representing an increase of 93.78%. The firm increased its portfolio allocation in OZK by 6,038.95% over the last quarter.

SDY - SPDR(R) S&P(R) Dividend ETF holds 3,489K shares representing 3.08% ownership of the company. In it's prior filing, the firm reported owning 6,202K shares, representing a decrease of 77.76%. The firm decreased its portfolio allocation in OZK by 31.67% over the last quarter.

Bank OZK Background Information
(This description is provided by the company.)

Bank OZK is a regional bank providing innovative financial solutions delivered by expert bankers with a relentless pursuit of excellence. Established in 1903, Bank OZK conducts banking operations through more than 250 offices in eight states including Arkansas, Georgia, Florida, North Carolina, Texas, New York, California and Mississippi and had $27.16 billion in total assets as of December 31, 2020.

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