Rhino Investment Partners, Inc. has significantly reduced its stake in Simmons First National Corporation (SFNC), selling 642,196 shares valued at approximately $12.82 million, according to a recent SEC filing. This move decreased Rhino’s holdings in SFNC from 7.3% to about 4% of its 13F AUM, reflecting both the sale and a decline in the stock’s market price, which has underperformed compared to the S&P 500 over the past year.
Despite the reduction, Simmons First National has shown strong operational performance, with first-quarter loan growth at a 10% annualized pace and an improved net interest margin of 3.84%. The bank reported net income of $68.5 million, more than double last year’s figures, indicating a positive trajectory. This suggests that while Rhino is trimming its position, there remains confidence in Simmons’ turnaround potential.
Investors should note that while Rhino’s stake has decreased, the underlying fundamentals of Simmons First National appear robust. If the bank can maintain its growth without compromising credit quality, it may present a compelling opportunity despite its recent stock performance.
Source: fool.com