Get Long FBK And NTB Financial IPOs Ahead Of Quiet Period Expiration
Investors should consider buying shares of two recent, attractive financial IPOs - NT Butterfield (NTB) and FB Financial Corporation (FBK) - ahead of the expiration of the two companies' IPO quiet periods on October 10th. Once the quiet period for both of these IPOs expire on October 10th, the company's underwriters will finally be allowed to release detailed reports about the firms. Since the companies have strong fundamentals and impressive underwriters, I expect that the reports from the underwriters will be positive. Since many investors monitor reports from these underwriters, I expect that the release of these reports - that will likely be positive - will move shares of these banks higher in the short-term.
Strong Underwriters:
FBK underwriters include J.P. Morgan Securities (JPM), Keefe Bruyette & Woods, Raymond James & Associates, Sandler O'Neill & Partners, and Stephens Inc.
NTB’s underwriters included Citigroup ( C), Goldman Sachs & Co. (GS) and Sandler O'Neill & Partners, L.P.
Key Facts :
Bank of N.T. Butterfield & Son LTD is based in Bermuda and has branches in the United Kingdom, the Cayman Islands, Switzerland, the Bahamas and Guernsey. NTB offers traditional banking services along with other services like wealth management, payroll services and commercial credit products.
FB Financial Corporation is based in Tennessee and also has branches in North Alabama and North Georgia. FBK offers depository products, equipment loans and working capital lines in addition to other services. FBK's investment division offers bonds, mutual funds and life insurance products amongst other services.
Good Early Performance:
FBK's IPO was priced at $19, above its expected price range of $16 to $18. The stock opened at $20.75 on its first day of trading, reaching a high of $20.81 on September 23. Shares of NTB were priced at the mid-point of the IPOs expected range. Shares of NTB were initially priced at $23.50 (expected range was $22 to $25). At Friday's close, NTB shares traded at $25.38.
How to Profit:
When the quiet period expires on October 10th, the underwriters of FBK and NTB will finally be able to release reports about the companies. Because these banks have good fundamentals, I expect that these reports will be positive and will move shares higher in the short term.
Bottom line: establish a position this week and sell shares after the underwriters release reports on October 11. I am long shares of both NTB and FBK.
Disclosure: I am long shares of both NTB and FBK.
I wrote this article myself, and it expresses my own opinions. I am not ...
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