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Upgrade; "Oversold" Declaration Spark Internet Bank BofI

  +Follow March 28, 2014 11:20AM
Tickers Mentioned:

In a stock move that so far appears to be fueled entirely by analyst bullishness, shares of the BofI Holding Inc. (BOFI) rose significantly on March 28. Analysts on both the fundamental and technical side predicted room for growth for BofI, triggering a buying frenzy that sent shares up nearly 13 percent on the day.

Raymond James looks to have started the rally for BofI with their upgrade right before the bell, changing their rating from "market perform" to outperform while raising their price target to $88 a share. At approximately the exact same time, Zacks raised their own Full-year EPS estimates 6 cents a share to $3.74 apiece while calling the stock oversold, citing the company’s unusually low RSI of 29.9.

The separate votes of confidence from both a technical and fundamental perspective ignited the rush to buy in. As the Friday trading session passed midday 620,000 shares had traded hands, representing more than double the average volume amount.

BofI is a lender with an unusual business model. BofI, which stands for "Bank of Internet," operates out of a single branch in San Diego, opting to operate almost entirety online. While a lack of personnel can certainly have a negative affect a bank’s ability to provide customer service, BofI CEO Garry Garrabrants claims this model also saves the company a significant amount of overhead, allowing them to offer customers higher deposit interest and lower loan rates than traditional brick-and-mortar banks can.

While unusual, the $3.6 billion asset bank’s model is not completely unique, with Los Angeles’ 1st Century Bancshares (FCTY) also running a “virtual bank” from just two physical locations. But while 1st Century has been relatively slow the last twelve months, gaining only 11 percent during a regional bank renaissance, BofI has skyrocketed.

Shares of BofI are up 112.44 percent from a year ago. While the stock had nudged down a slight 2.03 percent in 2014, those gains were easily recuperated on Friday.

BOfI retreated slightly after climbing as much as 13 percent on the day, and by 1:20 EST shares had gained 12.22 percent to hit $86.23 a share.




DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.

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Results for BOFI
G. Thomas Lackey Jr
20 Aug 14 16:56:34
August 20, 2014 RS Movers http://t.co/hjNINzavDg $IYT $IAT $NAV $PRGO $KBH $ATK $AMZN $MHK $NE $M $A $KCG $WYNN $CSCO $BOFI
10 Handles
18 Aug 14 11:00:17
I like $BOFI a lot over 80.75. This name ran 600% in 2.5 years and appears to be forming the right side of a -36% base.
15 Aug 14 05:06:20
BofI Holding Rating Increased to Outperform at Zacks $BOFI http://t.co/8oymMkO800
Biz News Pioneer
14 Aug 14 09:08:16
$BOFI: BofI Holding Inc: Continually the Best in Class - With Good Reason http://t.co/AGllte39Py http://t.co/KJAoRRSWpk
Stock Market Monitor
14 Aug 14 08:08:01
$BOFI: BofI Holding Target of Unusually Large Options Trading (BOFI) http://t.co/L0EADcVhfs http://t.co/saY5ugQ0Uc
Ticker Report
14 Aug 14 07:43:36
BofI Holding Upgraded by Zacks to Outperform $BOFI http://t.co/Tnu8ZGSetu
  +Follow March 28, 2014 11:20AM



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