Morgan Stanley Upgrades Cadence Bank Preferred Stock Outlook

In a recent report, Morgan Stanley upgraded Cadence Bank's preferred stock rating from Equal-Weight to Overweight, indicating heightened investor confidence. Institutional ownership has also seen a notable increase, suggesting a positive outlook for the stock moving forward.

Date: 01-10-2024

AI Rating: 7

The report highlights Morgan Stanley's upgrade of Cadence Bank - Preferred Stock (NYSE:CADE.PRA), which may positively influence investor sentiment and stock price. An upgrade to Overweight signals that analysts expect the stock to perform better than the market, which could lead to increased purchasing activity by investors.

Institutional ownership has remained stable, with reporting funds holding a collective 1,274K shares, a 4.04% increase over the last quarter. This uptick in institutional investment reflects growing confidence in Cadence Bank's performance and may further support a rise in stock prices due to increased demand.

Specifically, the PFF - iShares Preferred and Income Securities ETF raised its holdings significantly by 8.14%, showing strong endorsement from a key player in the fund space. Such increases in institutional positions can drive stock prices higher as it may indicate a robust belief in the stock's potential.

Furthermore, the increase in average portfolio weight dedicated to CADE.PRA, up 14.26%, suggests that investors are prioritizing this stock within their portfolios. Proactive adjustments like these can serve as catalysts for stock price movements.

In contrast, PGX - Invesco Preferred ETF experienced a slight decrease in its shares held. However, it still increased its allocation in CADE.PRA portfolio by 6.42%. This mixed sentiment indicates that while some investors are scaling back, most continue to increase their commitment to Cadence Bank, showing a generally positive outlook.

Stocks: CADE.PRA