OZK Stock Recent News

Amid heightened political uncertainties and increasing expectations of a recession, OZK shares have given back all of their post-election gains. Such a situation naturally attracts value investors, but also skeptics, as OZK is heavily exposed to commercial real estate. Based on the 2024 results reported in January, I will take a fresh look at OZK's operations and explain why I am increasingly optimistic despite a rather pessimistic market sentiment.

Bloomberg Intelligence analysts identified 50 stocks for 2025, focusing on catalysts like new leadership, acquisitions, and AI advancements, with 35 paying dividends. 14 of these dividend-paying stocks meet the “safer” criteria, with free cash flow yields exceeding dividend yields, making them attractive for first-time investors. Analysts project net gains of 10% to 50.26% for the top ten Bloomberg Dividend Focus companies by March 2026, highlighting potential investment opportunities.

OZK remains well-poised for growth, given its diverse loan portfolio, rising fee income and rate cuts. Yet, weak asset quality and high costs are woes.

Bank OZK's strong net results and low loan loss provisions ensure preferred dividends are well-covered, making the preferred shares attractive. The bank's low LTV ratio in its real-estate-backed portfolio and sufficient loan loss allowances mitigate risks, even in adverse scenarios. Preferred shares offer a 6.55% yield, trading at a 30% discount to par value, with the potential for price appreciation if interest rates drop.

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Bloomberg Intelligence analysts identified 50 watchable firms for 2025, focusing on catalysts like new leadership, asset sales, acquisitions, and new products. 14 of 35 dividend-paying companies meet the "safer" criteria with free cash flow yields exceeding dividend yields, inviting closer investor scrutiny. Top ten Bloomberg Dividend Focus stocks for 2025 projected net gains between 11.62% and 48.92%, based on analyst target prices and dividend yields.

Bank OZK shares rallied 10% after strong quarterly results, driven by robust asset growth and stable credit quality despite high CRE exposure. OZK's deposit growth remains strong, with 78% insured or collateralized, and funding costs expected to decline, benefiting net interest margin. Exceptional loan growth and conservative underwriting have buoyed credit quality, with significant reserves and low nonperforming loan ratios.

Bank OZK (NASDAQ:OZK ) Q4 2024 Earnings Conference Call January 17, 2025 11:00 AM ET Company Participants Jay Staley - Managing Director of Investor Relations and Corporate Development George Gleason - Chairman and Chief Executive Officer Jake Munn - President, Corporate and Institutional Banking Brannon Hamblen - President Tim Hicks - Chief Financial Officer Conference Call Participants Stephen Scouten - Piper Sandler Catherine Mealor - KBW Manan Gosalia - Morgan Stanley Matt Olney - Stephens Nicholas Holowko - UBS Michael Rose - Raymond James Brian Martin - Janney Montgomery Scott Operator Good day and thank you for standing by. Welcome to the Bank OZK Fourth Quarter 2024 Earnings Conference Call.

OZK's fourth-quarter 2024 earnings top estimates on higher NII and lower provisions and expenses. Yet, lower non-interest income and high funding costs are woes.

While the top- and bottom-line numbers for Bank OZK (OZK) give a sense of how the business performed in the quarter ended December 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.