2024-05-30 10:07:51 ET
Summary
- The stock of Bank OZK tanked 14% on Wednesday due to a double downgrade from Citigroup, which also slashed its price target on the bank by $20 a share.
- It was one of two analyst firms that noted the deteriorating condition of this regional bank's loan book, which has huge exposure to commercial real estate.
- An analysis of Bank OZK follows in the paragraphs below.
On the surface, Bank OZK ( OZK ) is one of the cheapest names in the overall market right now. The stock trades at just under seven times trailing earnings and sports roughly a three and a half percent dividend yield as well. However, as I have noted a few times recently, most recently in this article , the bank has huge exposure in its loan book to the deteriorating commercial real estate [CRE] sector. In fact, in my opinion, it is a canary in the crumbling CRE coalmine....
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For further details see:
Bank OZK: The 'Canary' In The CRE Coalmine