QCR Holdings Reinstates Share Buyback Plan; Street Sees 16% Upside


Shares of QCR Holdings (QCRH) gained 1.3% to close at $47.85 on May 24 after the bank announced the reinstatement of its stock repurchase program, which was initially authorized in February 2020.

Due to the COVID-19 pandemic, share repurchases were suspended by the company on March 16, 2020. Under the previously authorized program, 699,068 shares remained for repurchase.

QCR Holdings CEO Larry J. Helling said, “We continue to deliver strong financial performance, and reinstating this program gives us the opportunity to buy back shares and build long-term value.” (See QCR Holdings stock analysis on TipRanks)

Last month, QCR Holdings reported Q1 results. Adjusted earnings climbed 50.6% year-over-year to $1.16 per share and outpaced Street estimates of $1.12. Adjusted net interest income increased 12.3% to $43.7 million, while adjusted net interest margin declined 10 basis points to 3.40%.

On April 28, Raymond James analyst Daniel Cardenas increased the stock’s price target to $55 (15% upside potential) from $46 and reiterated a Buy rating following the company’s Q1 earnings report.

Cardenas said, “QCR is well positioned for post-pandemic life and expect the bank to produce superior growth driven by continued market share gains. With the stock trading at a discount to peers on a P/E basis, we believe this is an attractive entry point.”

The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 2 Buys. The average analyst price target of $55.50 implies 16% upside potential to current levels. Shares have increased 28.7% over the past six months.

Additionally, QCR Holdings scores an 8 of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.

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