The international Advisory & Discretionary wealth management company based in London, Christoph Feymann Capital, have identified that troubled Bank OZK is distancing itself from its bad loan debacle. It had increased in value by over 16% and placed itself comfortably inside the top 5 gainers on the NASDAQ stock exchange on the last day of week 2 trading.
The retail and commercial bank with a market capitalisation of $4.11B USD increased its trading volume from its average of 1.64 million shares a day to 5.41 million shares as a buying bonanza erupted.
Interest in the bank has been fuelled by it’s recent Wall St beating earning report and by SEC 13F filing showing strong institutional interest. Substantial positions have been taken up by Morgan Stanley, Vanguard Group, Paradigm Asset Management and the Commonwealth Bank of Australia.
Christopher Ailsworth LLB, CFA., Senior Strategist at Christoph Feymann Capital said, “It’s the old addage, institutional money is the smart money, and even when it’s not it’s enough to move the markets”.
In this instance, the culminative effect of the earnings report that topped the analyst consensus of 83 cents per share EPS with an impressive EPS of 89 cents per share and the new realisation that Bank OZK (NASDAQ:OZK) has topped 86% institutional ownership, has caught the markets interest.
The question remains though, Is Bank OZK a good addition to your portfolio?
Well, its consensus analyst rating is a hold and its price target has already been achieved. So, the answer is questionable. Christopher Ailsworth of Christoph Feymann Capital takes up the narrative again, “OZK has fair to strong fundamental strength. On that basis, along with the discount that the stock attracted after the bad loan fiasco, the stock won a short term buy rating in my view when it fell into value territory. Beyond that however, the stock is equal weight at best. Not strong enough to be a core holding, no catalyst on the horizon to indicate growth past the consensus target and a dividend that isn't going to jump off the spread sheet. After saying that, it is a leader in it’s geographical region and has been trading for over 115 years so I’ll be keeping it firmly on my watch list given its recent turn around and performance.”
About Bank OZL
Bank OZK provides a range of retail and commercial banking services to business, individuals and non-profit and governmental entities. The company accepts non-interest bearing checking, interest bearing transactions, business sweep, savings, money market, individual retirement and other accounts.
About Christoph Feymann Capital
Since our foundation in 2011 our focus on clients needs has been at the heart of everything we do. Our Management and Advisory teams have a wealth of over 1000 years combined experience in private advisory services. With over 10,000 clients and 5.6 Billion US Dollars in our clients portfolios, Christoph Feymann Capital not only offer stability but are abreast of modern innovative investment planning.
