Here's How Much You'd Have If You Invested $1000 in Bank OZK a Decade Ago
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Bank OZK (OZK) ten years ago? It may not have been easy to hold on to OZK for all that time, but if you did, how much would your investment be worth today?
Bank OZK's Business In-Depth
With that in mind, let's take a look at Bank OZK's main business drivers.
Headquartered in Little Rock, AR, Bank OZK was incorporated in 1981 and is a bank holding company registered under the Bank Holding Company Act of 1956. The company was formerly known as Bank of the Ozarks and changed its name to the current one in July 2018.
Bank OZK conducts its operations through more than 250 branches, loan production offices and other offices in Arkansas, Georgia, Florida, North Carolina, Texas, New York and Mississippi.
Bank OZK offers a wide range of retail and commercial banking services to businesses, individuals, and non-profit and governmental entities. Despite providing a wide variety of products and services, the company operates through only one segment – Community Banking.
Since its inception, Bank OZK has achieved substantial growth through a combination of organic growth initiatives and acquisitions. In 2015, Bank OZK acquired Intervest Bancshares Corporation and Bank of the Carolinas Corporation. In 2016, the company acquired Community & Southern Holdings Inc. and C1 Financial Inc.
In 2020, Bank OZK exited the Alabama market as it wasn't able to operate efficiently with just two branches in the state. It also exited the South Carolina market by selling two branches. Further, the company closed one branch in Arkansas.
As of Mar 31, 2021, Bank OZK had total assets of $27.3 billion, net loans of $18.4 billion, total deposits of $21.3 billion and stockholders’ equity of $4.4 billion.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Bank OZK, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in May 2011 would be worth $3,663.60, or a 266.36% gain, as of May 6, 2021. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 212.16% and the price of gold increased 15.12% over the same time frame in comparison.
Going forward, analysts are expecting more upside for OZK.
Bank OZK’s shares have outperformed the industry over the past year. Its earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters. Its first-quarter 2021 results reflected higher revenues, provision benefits and lower rates. Solid loan balances and the company’s business restructuring initiatives are expected to continue supporting revenues. Moreover, the company's solid balance sheet position will keep supporting its financials. It is expected to continue to enhance shareholder value in the future through sustained capital deployment activities. However, Bank OZK's margins are expected to remain under pressure in the near term due to the near-zero interest rate environment. Further, operating expenses are likely to stay elevated mainly due efforts to improve technology and investment in franchise.
The stock is up 7.33% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 5 higher, for fiscal 2021. The consensus estimate has moved up as well.
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