Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, regional bank First Niagara Financial Group (Nasdaq: FNFG ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at First Niagara's business and see what CAPS investors are saying about the stock right now.
First Niagara facts
|Headquarters (Founded)||Buffalo, N.Y. (1870)|
|Market Cap||$3.0 billion|
|Trailing-12-Month Revenue||$1.1 billion|
|Management||CEO John Koelmel (since 2006)
CFO Gregory Norwood (since 2011)
|Return on Equity (Average, Past 3 Years)||4.7%|
|Competitors||Citizens Financial Group
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 91% of the 244 members who have rated First Niagara believe the stock will outperform the S&P 500 going forward.
First Niagara Financial Group is quickly becoming a regional-baking powerhouse in the Northeastern United States. ...
In 2011, HSBC was looking to divest itself of its non-core assets. Among those assets was 195-branches located in upstate-New York and Connecticut, which First Niagara agreed to acquire. This deal further expands First Niagara's presence in the US Northeast.
All of the potential-negatives are now in the past for First Niagara. Future acquisitions of the size of the HSBC-deal are very unlikely for the foreseeable future. The dividend was cut in December 2011 to a much more manageable amount. And the bank completed a stock offering; the funds from the offering being used to pay the HSBC-branch acquisition. With all those negatives now behind First Niagara, I pick First Niagara to outperform from this point forward.
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