Triumph Bancorp (TFIN 0.16%) saw its stock price rise 18.6% this week from last Friday's close as of noon ET today, according to S&P Global Market Intelligence. It seemed to be on pace to close the week strong, as it was up 1.9% on Friday morning. Even with the good week, the stock is still down about 50% year to date (YTD) as of Friday at noon ET, trading at $58 per share.
It topped the major indexes, as the Dow Jones Industrial Average was up 3.3%, the S&P 500 was up 5.1%, and the Nasdaq jumped 7% for the week as of noon ET on Friday.
Triumph Bancorp is a Dallas-based holding company that runs TBK Bank as well as TriumphPay, a payment network for the trucking industry. It also has an arm called Triumph Capital, which provides factoring services for the trucking industry.
One of the catalysts for this weekʻs gains was a modified "Dutch auction" tender offer announced on Monday to repurchase up to $100 million of its own stock. The price per share must be between $51 and $58, and it expires on Dec. 6. It is different from a typical share repurchase in that shareholders can bid within a range and the ultimate price is an average that meets the total amount.
The market reacted favorably to the news, as the buyback, at a discounted price, has the effect of lowering the supply of shares on the market, which increases the value of existing shares -- generating higher stock prices.
Triumph Bancorp is carving out a unique market for itself with its TriumphPay network for the trucking industry, which seeks to streamline the payment process between truckers, factoring companies (who buy invoices), freight brokers, and shippers.
By the end of 2024, the company has a goal for TriumphPay to generate $100 million in revenue; $75 billion in payment volume; and to be EBITDA (earnings before interest, taxes, depreciation, and amortization) positive.
But as CFO William Bradley Voss said on the third-quarter earnings call, "The expense load that we have to add between now and then, that provides some guardrails, and it's going to force some discipline in order to be EBITDA positive at that point."
It is a great opportunity to fill a huge void in the industry, which makes Triumph Bancorp a stock to watch over these next few quarters.