Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Hilltop Holdings Inc. (HTH) Authorized To Buy Back Common Stock Worth $50 Million

Hilltop Holdings Inc. (NYSE:HTH) has announced that it had received authorization to repurchase common stock worth as much as $50 million through a stock buyback program.

According to the report, the company can use the authorized program to buy back the stock through private deals as authorized under Rule 10b-18 of the Securities Exchange Act of 1934. Hilltop Holdings Inc. (NYSE:HTH) can alternatively buy back the shares through open-market purchases. The timing of these share buybacks and the extent to which the company will repurchase the stock will depend on the outlook of the market as well as corporate factors as outlined by the firm’s management team.

The company released the report for its performance in the first quarter about two months ago where it revealed a drop in the share performance for the first quarter of 2016 compared to the performance in the previous year. Hilltop Holdings Inc. (NYSE:HTH)’s common stockholders received an income of $27.6 million, which is equivalent to $0.28 for every diluted share in the first quarter this year. This is a massive drop compared to $111.9 million shares common stock revenue equivalent to $1.11 for each diluted share in the first three months of 2015.

investment, accounting, research, market, marketing, trade, business, funds, report, stock, plan, graph, concept, profit, money, paperwork, forecast, growth, hand, diagram, calculator

Zadorozhnyi Viktor/

The drastic change in common stock income is most likely because of the acquisition of SWS, which was worth $81.3 million equivalent to $0.81 per diluted share. The company’s average equity returns and average annual returns from assets were 6.32% and 0.96% respectively in the first quarter of 2016 versus 26.76% and 3.64% respectively in the first quarter of 2015.

Hilltop CEO, Jeremy Ford, stated that his company was happy to report strong financial results for this year’s first quarter. The CEO further added that the PlainsCapital Bank generated consistent capital, which was fueled by steady growth in loans, low-cost deposits, and consistent credit quality. Mr. Ford also noted that his company successfully merged broker-dealers into one unit in January this year. Integration of related costs and adjustment of the transactions also led to improvement in pre-tax margins.

Vanguard Group held 5.48 million shares of the company as of March 31.

Follow Hilltop Holdings Inc. (NYSE:HTH)
Trade (NYSE:HTH) Now!

Note: This article is written by Andy Parker and originally published at Market Exclusive.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.