Bank OZK (NASDAQ:OZK) Shares Gap Down Following Weak Earnings

Bank OZK (NASDAQ:OZK)’s stock price gapped down before the market opened on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $47.80, but opened at $46.59. Bank OZK shares last traded at $48.5350, with a volume of 1,816,595 shares.

The company reported $1.53 EPS for the quarter, missing the consensus estimate of $1.56 by ($0.03). The company had revenue of $436.29 million during the quarter, compared to the consensus estimate of $434.68 million. Bank OZK had a return on equity of 13.00% and a net margin of 25.81%.During the same quarter last year, the company posted $1.56 earnings per share.

Bank OZK Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, January 20th. Investors of record on Tuesday, January 13th were issued a $0.46 dividend. The ex-dividend date of this dividend was Tuesday, January 13th. This is a positive change from Bank OZK’s previous quarterly dividend of $0.45. This represents a $1.84 dividend on an annualized basis and a dividend yield of 3.8%. Bank OZK’s payout ratio is 29.68%.

Trending Headlines about Bank OZK

Here are the key news stories impacting Bank OZK this week:

• Positive Sentiment: Analyst/feature pieces highlight OZK’s valuation — trading at under 8x forward earnings — which supports a valuation-driven rerating if results and guidance remain stable. Read More.
• Positive Sentiment: Full-year results: OZK reported record 2025 EPS of $6.18 (up slightly year-over-year), showing underlying profitability and supporting dividend/earnings power. Read More.
• Neutral Sentiment: Top-line: Q4 revenue of $436.3M slightly exceeded consensus (~$434.7M), indicating modest growth even as quarterly net income dipped versus the prior year. Read More.
• Neutral Sentiment: Commercial real estate loan activity: a large $133M construction loan for a Coral Gables condo project was reported in the market (project-level coverage may signal continued CRE lending activity in OZK’s target markets, though lender identity/details weren’t definitive). Read More.
• Negative Sentiment: Q4 EPS missed estimates: EPS of $1.53 fell short of the $1.56 consensus and net income for the quarter was down ~3.5% year-over-year; the market reacted to the EPS miss and commentary on rising credit-loss provisions. Read More.

Analyst Ratings Changes

A number of brokerages have issued reports on OZK. National Bankshares set a $67.00 price objective on shares of Bank OZK in a report on Wednesday, September 24th. Piper Sandler reiterated an “overweight” rating and issued a $64.00 target price on shares of Bank OZK in a report on Wednesday. UBS Group reissued a “neutral” rating and issued a $51.00 price objective on shares of Bank OZK in a research report on Tuesday, January 6th. Citigroup reissued a “sell” rating on shares of Bank OZK in a research note on Monday, January 5th. Finally, TD Cowen dropped their price objective on Bank OZK from $61.00 to $56.00 and set a “buy” rating on the stock in a research note on Wednesday, January 7th. Six analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $57.78.

Institutional Trading of Bank OZK

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Truist Financial Corp increased its holdings in shares of Bank OZK by 7.1% during the second quarter. Truist Financial Corp now owns 16,494 shares of the company’s stock worth $776,000 after buying an additional 1,088 shares in the last quarter. Nomura Holdings Inc. lifted its position in shares of Bank OZK by 160.6% in the 2nd quarter. Nomura Holdings Inc. now owns 107,000 shares of the company’s stock worth $5,035,000 after purchasing an additional 65,946 shares during the period. Arrowstreet Capital Limited Partnership increased its holdings in Bank OZK by 57.2% in the second quarter. Arrowstreet Capital Limited Partnership now owns 694,956 shares of the company’s stock worth $32,705,000 after purchasing an additional 253,001 shares in the last quarter. Twin Lions Management LLC lifted its position in shares of Bank OZK by 23.1% during the 2nd quarter. Twin Lions Management LLC now owns 340,330 shares of the company’s stock valued at $16,016,000 after acquiring an additional 63,800 shares during the period. Finally, Tectonic Advisors LLC bought a new position in shares of Bank OZK during the 3rd quarter worth about $773,000. 86.18% of the stock is owned by institutional investors and hedge funds.

Bank OZK Stock Up 1.0%

The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.13. The stock has a 50 day simple moving average of $46.68 and a 200 day simple moving average of $48.76. The stock has a market cap of $5.40 billion, a price-to-earnings ratio of 7.80 and a beta of 0.90.

About Bank OZK

Bank OZK, formerly known as Bank of the Ozarks, is a regional commercial bank headquartered in Little Rock, Arkansas. Established in 1903, the bank offers a full suite of banking products and services to both individual and corporate clients. Through a combination of organic growth and targeted acquisitions, Bank OZK has built a diversified lending portfolio and a strong deposit franchise.

The bank’s core operations focus on commercial real estate lending, including acquisition, development and construction financing.