Event Overview

The quiet period for Cadence Bancorporation (Pending:CADE) is set to expire on May 8.

Our firm has extensively covered stock price movement around the IPO quiet period expirations, which is a period of time post a company’s IPO, in which its underwriters are unable to release reports or recommendations on the stock. We have found that underwriters are often eager to release positive reports once restrictions are lifted, and these reports lead to a temporary boost in stock price. Our firm has found above-market positive returns of 2-3% in a short window of time surrounding the expiration.

The likelihood of a stock bump around QP expirations are greater if: a strong team of underwriters backed the IPO and the stock price is up since its debut. Cadence Bancorporation’s notable team of underwriters included: Goldman Sachs, J.P. Morgan, Sandler O’Neill, Keefe Bruyette Woods, Baird, Raymond James, Stephens Inc., SunTrust Robinson Humphrey, Tudor, Pickering, Holt & Co. Additionally, the stock has received a warm welcoming, up 13% from its IPO price. (pre-market session 5.1).

We recommend investing in Cadence Bancorporation ahead of Monday, the 5.8 expiration date, to benefit from the expected price increase.

We first covered Cadence Bancorporation on our IPO Insights Platform. Although the deal, was low profile, we were optimistic about the company and recommended investing.

Company Background

Texas-based commercial bank which offers a broad range of banking and wealth management services to: businesses, high net worth individuals, and business owners. It was formed in 2009 and completed three major acquisitions, including Cadence Bank (2011), the franchise of Superior Bank (2011), and Encore Bank (2012). As of its IPO, the bank had 66 branches in Alabama, Texas, Florida, Mississippi, and Tennessee. As of December 31, 2016, it had $9.5 billion of assets, $8.0 billion in deposits and $1.1 billion in shareholder’s equity.