ONTARIO – CVB Financial Corp . (NASDAQ:CVBF), the parent company of Citizens Business Bank, announced the authorization of a new stock repurchase program. The company's Board of Directors, during its regular meeting on November 20, 2024, approved the buy-back of up to 10 million shares of its common stock. This initiative, referred to as the 2024 Repurchase Program, may include purchases made through Rule 10b5-1 plans, open market purchases, and private transactions.
David A. Brager, President and Chief Executive Officer of CVB Financial, highlighted the company's solid capital foundation and its history of generating quality earnings as the basis for the decision. He emphasized the program's aim to continue providing long-term value to the shareholders. The new repurchase program supersedes the previous 2022 program, which had about 4.3 million shares still available for repurchase.
CVB Financial Corp. stands as one of the top 10 largest bank holding companies based in California, with assets exceeding $15 billion. Citizens Business Bank, under CVBF, operates more than 60 banking centers and three trust office locations across California, offering a comprehensive suite of banking, lending, and investing services. CVBF's common stock trades on the NASDAQ stock exchange.
This move comes as part of the company's broader strategy to manage its capital efficiently and deliver shareholder value. The repurchase program is seen as a positive signal to the market, reflecting the company's confidence in its financial health and future prospects.
The announcement is based on a press release statement from CVB Financial Corp. and provides investors with the latest information regarding the company's capital management initiatives.
In other recent news, CVB Financial Corp. reported second-quarter earnings with net earnings of $50 million, or $0.36 per share. The company also announced a quarterly cash dividend of $0.20 per share, maintaining its consistent shareholder returns. Regarding mergers and acquisitions, CVB Financial expressed cautious optimism about potential opportunities in the future.
Financial services firm Piper Sandler raised the price target for CVB Financial from $21 to $23, reaffirming its Overweight rating on the stock. This adjustment was based on the firm's financial projections for the company, including an estimated earnings per share (EPS) for the year 2024 at $1.41, and a slightly reduced estimate for 2025 at $1.28.
In addition to Piper Sandler's assessment, Keefe, Bruyette & Woods upgraded CVB Financial's stock rating from Market Perform to Outperform. This upgrade was based on the expectation of stabilization in net interest income and deposits. Concurrently, Stephens raised the price target for CVB Financial shares to $21, maintaining an Equal Weight rating.
CVB Financial also announced the resignation of Francene LaPoint, the Senior Vice President and Chief Accounting Officer, effective November 22, 2024. The company has not yet announced a permanent replacement, but the search for a successor is expected to commence shortly. These are among the recent developments for CVB Financial as it continues to navigate the financial landscape.
InvestingPro Insights
CVB Financial Corp.'s new stock repurchase program aligns well with its strong financial position and commitment to shareholder value. According to InvestingPro data, the company boasts a market capitalization of $3.21 billion and a P/E ratio of 16.2, indicating a reasonable valuation relative to its earnings.
An InvestingPro Tip highlights that CVBF has maintained dividend payments for 36 consecutive years, underscoring its consistent approach to returning value to shareholders. This long-standing dividend history complements the newly announced share repurchase program, potentially enhancing overall shareholder returns.
The company's financial strength is further evidenced by its profitability. InvestingPro data shows an operating income margin of 54.57% for the last twelve months as of Q3 2024, reflecting efficient operations. Additionally, CVBF's dividend yield stands at 3.54%, offering an attractive income stream for investors.
It's worth noting that CVBF has shown strong recent performance, with InvestingPro Tips indicating robust returns over the last month and three months. The stock is also trading near its 52-week high, with a price at 98.25% of its 52-week peak, suggesting positive market sentiment.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for CVBF, providing deeper insights into the company's financial health and market position.
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