Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

SB Financial (SBFG) Rewards Investors With New Buyback Plan

Published 06/01/2021, 02:08 AM
Updated 07/09/2023, 06:31 AM

SB Financial Group, Inc. SBFG is rewarding shareholders with an enhanced capital-deployment plan. The company’s board of directors has authorized the repurchase of 750,000 shares, which accounts for nearly 10% of its common shares. The authorization expires on Mar 31, 2022.

Following the announcement last week, shares of SB Financial have declined 1%.

Earlier in June 2019, the company had announced a share-repurchase program to buy back 400,000 common shares. The plan expired on Dec 31, 2020.

In addition to share repurchases, the company pays cash dividends on a quarterly basis. In May, SB Financial paid a quarterly cash dividend of 11 cents per share, marking a hike of 4.8% from the prior payout. Considering last day’s closing price of $19.80, the dividend yield currently stands at 2.2%. This yield seems quite attractive to income investors.

Notably, SB Financial has been increasing its quarterly dividend on a regular basis. Prior to the current hike, the company had announced a 5% hike to 10.5 cents per share in November 2020.

Over the past six months, shares of SB Financial have rallied 7.1%, underperforming the industry’s rally of 43.3%.

Zacks Investment ResearchImage Source: Zacks Investment Research

Currently carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Banks Making Similar Moves

Several banks have announced new share-repurchase programs in recent months. Some of these are City Holding Company (NASDAQ:CHCO) CHCO, Cathay General Bancorp (NASDAQ:CATY) CATY and Civista Bancshares (NASDAQ:CIVB), Inc. CIVB.

City Holding authorized the buyback of up to 1 million shares or 6% of its outstanding shares, with no expiration date. Cathay General’s board of directors has authorized the repurchase of up to $75 million worth of shares with no expiration date. Further, Civista Bancshares’ board of directors has authorized buyback of up to $13.5 million of its outstanding shares.

Time to Invest in Legal Marijuana

If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.

After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%

You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.

Today, Download Marijuana Moneymakers FREE >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Cathay General Bancorp (CATY): Free Stock Analysis Report

City Holding Company (CHCO): Free Stock Analysis Report

Civista Bancshares, Inc. (CIVB): Free Stock Analysis Report

SB Financial Group, Inc. (SBFG): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.