In this article, we discuss the top 5 finance stock picks of Anton Schutz’s Mendon Capital Advisors. If you want our detailed analysis of these stocks, go directly to Anton Schutz’s Mendon Capital Advisors Portfolio: Top 10 Finance Stocks.
5. Spirit of Texas Bancshares, Inc. (NASDAQ:STXB)
Mendon Capital Advisors’ Stake Value: $12,378,000
Percentage of Mendon Capital Advisors’ 13F Portfolio: 4.21%
Number of Hedge Fund Holders: 9
Spirit of Texas Bancshares, Inc. (NASDAQ:STXB) made it to our list of the top finance stock picks of Mendon Capital Advisors, with the investment firm owning stakes valued at $12.37 million in the bank holding company, accounting for 4.21% of its investment portfolio as of the second quarter.
Spirit of Texas Bancshares, Inc. (NASDAQ:STXB) specializes in community, commercial, and retail banking services via 36 branches in the state of Texas. As of the second quarter, 9 hedge funds tracked by Insider Monkey’s exclusive database reported owning stakes in Spirit of Texas Bancshares, Inc. (NASDAQ:STXB), with an approximate stake value of $26.4 million.
Spirit of Texas Bancshares, Inc. (NASDAQ:STXB) posted earnings results, October 27, for the third quarter. Earnings per share were reported as $0.59, as predicted by the analysts. The revenue for the period was $31.29 million, missing estimates by -$1.34 million.
4. The First Bancshares, Inc. (NASDAQ:FBMS)
Mendon Capital Advisors’ Stake Value: $13,174,000
Percentage of Mendon Capital Advisors’ 13F Portfolio: 4.48%
Number of Hedge Fund Holders: 9
The First Bancshares, Inc. (NASDAQ:FBMS) is a Mississippi-based bank holding company, with operations in Louisiana, Alabama, Georgia, and Florida. Offering services like personal banking, mortgage lending, treasury management, and a network of ATMs and branches, The First Bancshares, Inc. (NASDAQ:FBMS) is one of the top finance stock picks of Anton Schutz, with Mendon Capital Management holding a $13.1 million stake in the company.
Of the hedge funds monitored by Insider Monkey, Chuck Royce’s Royce & Associates is the largest stakeholder in The First Bancshares, Inc. (NASDAQ:FBMS), as of June this year, with 652,051 shares valued at $25.2 million.
On October 25, earnings per share for Q3 were announced as $0.76 by The First Bancshares, Inc. (NASDAQ:FBMS), beating estimates by $0.01. Revenue for the quarter equated $40.03 million, surpassing forecasts by $0.48 million.
The First Bancshares, Inc. (NASDAQ:FBMS) will distribute dividends amounting to $0.16 per common share on November 26, to shareholders on record as of November 9. This represents an increase of 6.67% when compared to the previous dividend payout.
3. Equity Bancshares, Inc. (NASDAQ:EQBK)
Mendon Capital Advisors’ Stake Value: $15,508,000
Percentage of Mendon Capital Advisors’ 13F Portfolio: 5.28%
Number of Hedge Fund Holders: 7
Anton Schutz’s Mendon Capital Advisors holds 464,611 shares in Equity Bancshares, Inc. (NASDAQ:EQBK), as of the second quarter of 2021. Representing 5.28% of Schutz’s Q2 portfolio, Equity Bancshares, Inc. (NASDAQ:EQBK) is a Kansas-based bank holding company, offering investment management services, house loans, digital banking, and commercial lending to customers across Kansas, Oklahoma, Arkansas, and Missouri.
As of Q2, 7 hedge funds in the database of exclusive funds maintained by Insider Monkey reported owning stakes in Equity Bancshares, Inc. (NASDAQ:EQBK), worth $28.7 million. Mendon Capital Advisors is the leading stakeholder in the company, as of the second quarter.
Equity Bancshares, Inc. (NASDAQ:EQBK), on October 19, reported earnings per share for the third quarter as $0.96, exceeding estimates by $0.24. Revenue for the period totaled $46.81 million, up 21.28% year-over-year.
It was disclosed on October 25 that Equity Bancshares, Inc. (NASDAQ:EQBK) would enter into a purchase and assumption agreement with United Bank & Trust, based in Maryville, so that United Bank & Trust can assume control of the assets and operations of Equity Bancshares, Inc. (NASDAQ:EQBK)’s branches in Concordia, Belleville, and Clyde. If regulatory approval is given, the merger will be completed by the second quarter of 2022.
2. Veritex Holdings, Inc. (NASDAQ:VBTX)
Mendon Capital Advisors’ Stake Value: $15,744,000
Percentage of Mendon Capital Advisors’ 13F Portfolio: 5.36%
Number of Hedge Fund Holders: 9
Veritex Holdings, Inc. (NASDAQ:VBTX) represents 5.36% of Anton Schutz’s Mendon Capital Advisors’ Q2 portfolio, making it one of the firm’s top finance stocks. Veritex Holdings, Inc. (NASDAQ:VBTX), via its subsidiary Veritex Community Bank, specializes in commercial banking products and services, aimed at small to medium businesses. Veritex Holdings, Inc. (NASDAQ:VBTX) also offers commercial treasury services, corporate lending, and digital banking.
Veritex Holdings, Inc. (NASDAQ:VBTX) announced a quarterly cash dividend of $0.20 per share on October 26, with a 1.96% forward yield. Veritex Holdings, Inc. (NASDAQ:VBTX) would distribute the dividend to shareholders on record as of November 9, payable on November 23. The company also announced Q3 earnings per share of $0.70, beating estimates by $0.02.
Brad Milsaps from Piper Sandler, on October 28, kept an Overweight rating on Veritex Holdings, Inc. (NASDAQ:VBTX) stock, inflating the price target from $42 to $46. He attributed the rating to the Q3 earnings beat and a strong balance sheet owing to a growth in commercial lending.
1. Live Oak Bancshares, Inc. (NASDAQ:LOB)
Mendon Capital Advisors’ Stake Value: $22,270,000
Percentage of Mendon Capital Advisors’ 13F Portfolio: 7.58%
Number of Hedge Fund Holders: 11
As of June this year, Live Oak Bancshares, Inc. (NASDAQ:LOB) is the largest holding in Anton Schutz’s investment portfolio. Mendon Capital Advisors holds 350,000 shares in Live Oak Bancshares, Inc. (NASDAQ:LOB), amounting to $22.27 million, representing 7.58% of the firm’s Q2 portfolio. Live Oak Bancshares, Inc. (NASDAQ:LOB) is a bank holding company from Washington, servicing small businesses via commercial lending and deposits. The commercial lending portfolio at Live Oak Bancshares, Inc. (NASDAQ:LOB) includes loans for construction and development, commercial real estate, and commercial land.
Live Oak Bancshares, Inc. (NASDAQ:LOB) posted Q3 earnings on October 27, with EPS for the period totaling $0.76, exceeding estimates by $0.10. Revenue for the third quarter was $103.01 million, up 4.68% year-over-year.
Jennifer Demba, from the investment advisory Truist, raised the price target on Live Oak Bancshares, Inc. (NASDAQ:LOB) from $90 to $115, while keeping a Buy rating on the stock. She believes that the Q3 earnings were impressive, and Live Oak Bancshares, Inc. (NASDAQ:LOB) has several opportunities to further grow its EPS.
You can also take a look at 10 Most Shorted Stocks Hedge Funds Are Buying and Top 10 Stock Picks of Brandon Osten’s Venator Capital Management.
