Why Signature Bank Shares Surged
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Signature Bank surged 14% today after the regional bank's quarterly results easily topped Wall Street expectations.
So what: The stock has soared over the past year on better-than-expected growth, and today's fourth-quarter results -- profit spiked 28% on a revenue surge of 18% -- only reinforce that trend. In fact, deposits increased 6% to $17.1 billion while loans increased 12% to $13.5 billion during the quarter, giving analysts plenty of good vibes over Signature's profit growth going forward.
Now what: Don't expect the operating momentum to slow anytime soon. "As our economy emerges from years of slow growth, we are enjoying traction across all segments of our business," said board Chairman Scott Shay in a statement. "As we look ahead, we pledge to stand by our pillars of safety and service in 2014 and beyond."
Of course, with the stock now up nearly 80% from its 52-week lows and trading at a forward P/E of more than 20, I'd wait for a much a wider margin of safety before banking on that bullishness.
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The article Why Signature Bank Shares Surged originally appeared on Fool.com.
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