Category: MVBF

MVBF – Can MVB Financial (MVBF) Run Higher on Rising Earnings Estimates?

Investors might want to bet on MVB Financial (MVBF Free Report) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.

Analysts’ growing optimism on the earnings prospects of this company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool — the Zacks Rank.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

For MVB Financial, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:

12 Month EPS

Current-Quarter Estimate Revisions

For the current quarter, the company is expected to earn $0.76 per share, which is a change of +850% from the year-ago reported number.

The Zacks Consensus Estimate for MVB Financial has increased 111.11% over the last 30 days, as one estimate has gone higher compared to no negative revisions.

Current-Year Estimate Revisions

The company is expected to earn $2.28 per share for the full year, which represents a change of -25.49% from the prior-year number.

In terms of estimate revisions, the trend for the current year also appears quite encouraging for MVB Financial. Over the past month, one estimate has moved higher compared to no negative revisions, helping the consensus estimate increase 101.77%.

Favorable Zacks Rank

The promising estimate revisions have helped MVB Financial earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

MVB Financial shares have added 50.2% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects.

MVBF – MVB Financial Corp. Declares First Quarter 2021 Dividend

FAIRMONT, W.Va.–(BUSINESS WIRE)–MVB Financial Corp. (NASDAQ: MVBF) (“MVB Financial,” “MVB,” or the “Company”) has declared a quarterly cash dividend of $0.10 per share payable on March 15, 2021, to shareholders of record at the close of business on March 1, 2021.

This is the first quarterly dividend for 2021 and includes a 11.1% increase in dividends as compared to the previous quarter dividend of $0.09 per share.

“Despite the challenges of the COVID-19 pandemic, 2020 ended as one of the most successful years in MVB history with record earnings. In unprecedented times, Team MVB completed multiple strategic transactions, created growth in tangible book value and shareholder value. We are pleased to increase our dividend level for shareholders and, as always, are committed to their success,” said Larry F. Mazza, President and CEO, MVB Financial Corp.

About MVB Financial Corp.

MVB Financial Corp., the holding company of MVB Bank, Inc., is publicly traded on The Nasdaq Capital Market® under the ticker “MVBF.” Nasdaq is a leading global provider of trading, clearing, exchange technology, listing, information and public company services. Through its subsidiary, MVB Bank, Inc., and the Bank’s subsidiaries, MVB Community Development Corporation, Chartwell Compliance, Paladin Fraud, and MVB Technology, the Company provides financial services to individuals and corporate clients in the Mid-Atlantic region and beyond. For more information about MVB, please visit http://ir.mvbbanking.com.

Forward-Looking Statements

MVB Financial Corp. has made forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, in this press release that are intended to be covered by the protections provided under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations about the future and subject to risks and uncertainties. Forward-looking statements include, without limitation, information concerning possible or assumed future results of operations of the Company and its subsidiaries. Forward-looking statements can be identified by the use of words such as “may,” “could,” “should,”, “would,” “will,” “plans,” “believes,” “estimates,” “expects,” “anticipates,” “intends,” “continues,” or the negative of those terms or similar expressions. Note that many factors could affect the future financial results of the Company and its subsidiaries, both individually and collectively, and could cause those results to differ materially from those expressed in forward-looking statements. Therefore, undue reliance should not be placed upon any forward-looking statements. Those factors include but are not limited to: market, economic, operational, liquidity, and credit risk; changes in market interest rates; inability to achieve anticipated synergies and successfully integrate recent mergers and acquisitions; inability to successfully execute business plans, including strategies related to investments in financial technology companies; competition; length and severity of the COVID-19 pandemic and its impact on the Company’s business and financial condition; changes in economic, business, and political conditions; changes in demand for loan products and deposit flow; operational risks and risk management failures; and government regulation and supervision. Additional factors that may cause actual results to differ materially from those described in the forward-looking statements can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, as well as its other filings with the SEC, which are available on the SEC’s website at www.sec.gov. Except as required by law, the Company disclaims any obligation to update, revise, or correct any forward-looking statements.

MVBF – Earnings Estimates Moving Higher for Mvb Financial Corp. (MVBF): Time to Buy?

Mvb Financial Corp. (MVBF Free Report) could be a solid choice for investors given the company’s remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.

The upward trend in estimate revisions for this company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool — the Zacks Rank — has this insight at its core.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

Consensus earnings estimates for the next quarter and full year have moved considerably higher for Mvb Financial Corp. As there has been strong agreement among the covering analysts in raising estimates.

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:

12 Month EPS

Current-Quarter Estimate Revisions

The company is expected to earn $0.31 per share for the current quarter, which represents a year-over-year change of -3.13%.

Over the last 30 days, the Zacks Consensus Estimate for Mvb Financial Corp. has increased 20% because one estimate has moved higher compared to no negative revisions.

Current-Year Estimate Revisions

For the full year, the company is expected to earn $2.41 per share, representing a year-over-year change of +11.57%.

The revisions trend for the current year also appears quite promising for Mvb Financial Corp. with one estimate moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 8.65%.

Favorable Zacks Rank

The promising estimate revisions have helped Mvb Financial Corp. earn a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

Investors have been betting on Mvb Financial Corp. because of its solid estimate revisions, as evident from the stock’s 8.9% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.

MVBF – Where Do Hedge Funds Stand On MVB Financial Corp. (MVBF)?

Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds’ and successful investors’ positions as of the end of the third quarter. You can find articles about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves over the last 5 years and analyze what the smart money thinks of MVB Financial Corp. (NASDAQ:MVBF) based on that data.

MVB Financial Corp. (NASDAQ:MVBF) has experienced a decrease in hedge fund interest in recent months. MVB Financial Corp. (NASDAQ:MVBF) was in 3 hedge funds’ portfolios at the end of the third quarter of 2020. The all time high for this statistics is 7. Our calculations also showed that MVBF isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video for a quick look at the top 5 stocks).


Video: Watch our video about the top 5 most popular hedge fund stocks.

In the eyes of most traders, hedge funds are assumed to be worthless, outdated investment tools of the past. While there are greater than 8000 funds with their doors open at present, We hone in on the bigwigs of this club, about 850 funds. Most estimates calculate that this group of people preside over the lion’s share of the hedge fund industry’s total asset base, and by following their highest performing equity investments, Insider Monkey has spotted a number of investment strategies that have historically surpassed the S&P 500 index. Insider Monkey’s flagship short hedge fund strategy exceeded the S&P 500 short ETFs by around 20 percentage points a year since its inception in March 2017. Our portfolio of short stocks lost 13% since February 2017 (through November 17th) even though the market was up 65% during the same period. We just shared a list of 6 short targets in our latest quarterly update .

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website.With all of this in mind we’re going to take a gander at the fresh hedge fund action regarding MVB Financial Corp. (NASDAQ:MVBF).

How have hedgies been trading MVB Financial Corp. (NASDAQ:MVBF)?

At third quarter’s end, a total of 3 of the hedge funds tracked by Insider Monkey were long this stock, a change of -40% from the second quarter of 2020. Below, you can check out the change in hedge fund sentiment towards MVBF over the last 21 quarters. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were boosting their stakes significantly (or already accumulated large positions).

Is MVBF A Good Stock To Buy?

According to Insider Monkey’s hedge fund database, EJF Capital, managed by Emanuel J. Friedman, holds the most valuable position in MVB Financial Corp. (NASDAQ:MVBF). EJF Capital has a $18 million position in the stock, comprising 1.5% of its 13F portfolio. On EJF Capital’s heels is Second Curve Capital, led by Tom Brown, holding a $3.3 million position; the fund has 13% of its 13F portfolio invested in the stock. In terms of the portfolio weights assigned to each position Second Curve Capital allocated the biggest weight to MVB Financial Corp. (NASDAQ:MVBF), around 12.99% of its 13F portfolio. EJF Capital is also relatively very bullish on the stock, dishing out 1.5 percent of its 13F equity portfolio to MVBF.

Seeing as MVB Financial Corp. (NASDAQ:MVBF) has experienced a decline in interest from the aggregate hedge fund industry, we can see that there was a specific group of hedge funds who were dropping their positions entirely heading into Q4. Interestingly, Phil Stone’s Fourthstone LLC dumped the biggest stake of all the hedgies monitored by Insider Monkey, worth an estimated $0.4 million in stock, and Israel Englander’s Millennium Management was right behind this move, as the fund said goodbye to about $0.2 million worth. These moves are important to note, as aggregate hedge fund interest was cut by 2 funds heading into Q4.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as MVB Financial Corp. (NASDAQ:MVBF) but similarly valued. We will take a look at General Finance Corporation (NASDAQ:GFN), Atlanticus Holdings Corp (NASDAQ:ATLC), Great Ajax Corp (NYSE:AJX), North American Construction Group Ltd. (NYSE:NOA), CASI Pharmaceuticals Inc (NASDAQ:CASI), Immersion Corporation (NASDAQ:IMMR), and Rekor Systems, Inc. (NASDAQ:REKR). This group of stocks’ market valuations are closest to MVBF’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
GFN 3 7753 -1
ATLC 2 5259 0
AJX 5 13167 -1
NOA 9 23376 0
CASI 10 15008 4
IMMR 21 70678 4
REKR 6 9184 4
Average 8 20632 1.4

View table here if you experience formatting issues.

As you can see these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $21 million. That figure was $22 million in MVBF’s case. Immersion Corporation (NASDAQ:IMMR) is the most popular stock in this table. On the other hand Atlanticus Holdings Corp (NASDAQ:ATLC) is the least popular one with only 2 bullish hedge fund positions. MVB Financial Corp. (NASDAQ:MVBF) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for MVBF is 18.5. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 20 most popular stocks among hedge funds returned 41.3% in 2019 and outperformed the S&P 500 ETF (SPY) by 10 percentage points. These stocks gained 28.1% in 2020 through November 23rd and still beat the market by 15.4 percentage points. A small number of hedge funds were also right about betting on MVBF as the stock returned 26.5% since the end of the third quarter (through 11/23) and outperformed the market by an even larger margin.

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Disclosure: None. This article was originally published at Insider Monkey.