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Renasant (RNST)
:RNST

Renasant (RNST) AI Stock Analysis

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Renasant

(NYSE:RNST)

70Outperform
Renasant's stock score is supported by strong financial growth and attractive valuation. The successful merger and positive earnings call provide a favorable outlook. However, technical indicators show bearish momentum, and economic uncertainty could impact future performance.

Renasant (RNST) vs. S&P 500 (SPY)

Renasant Business Overview & Revenue Model

Company DescriptionRenasant Corporation (RNST) is a financial services institution based in the Southeastern United States. It operates primarily through its subsidiary, Renasant Bank, which provides a wide range of banking and financial services including commercial and consumer banking, mortgage lending, and wealth management. The company serves individuals, small businesses, and corporate clients across its regional branch network.
How the Company Makes MoneyRenasant Corporation generates revenue primarily through interest income from its lending activities and non-interest income from fees and other financial services. The company earns interest income by providing various loans, including commercial, real estate, and consumer loans, which are funded by customer deposits and other borrowings. Non-interest income is derived from service charges, mortgage banking, investment advisory, and wealth management fees. Renasant also benefits from its strategic partnerships with other financial service providers, which enhance its product offerings and contribute to its earnings.

Renasant Financial Statement Overview

Summary
Renasant exhibits strong revenue growth and improved profitability margins. The balance sheet is solid with effective debt management, but cash flow concerns and missing operational margin data warrant attention.
Income Statement
75
Positive
Renasant exhibits strong revenue growth, particularly from 2023 to 2024, with a revenue increase of about 40%. The net profit margin improved significantly from 22.9% in 2023 to 22% in 2024, indicating enhanced profitability. However, EBIT and EBITDA margins were not available for 2024, which slightly limits the comprehensive assessment of operational efficiency.
Balance Sheet
70
Positive
The balance sheet reveals a healthy equity ratio of 14.9% in 2024, suggesting a solid capital position. The debt-to-equity ratio improved from 0.32 in 2023 to 0.20 in 2024, demonstrating effective debt management. Despite these strengths, there is a slight decline in cash reserves, which could be a potential risk if not managed carefully.
Cash Flow
68
Positive
The company's cash flow analysis shows a decline in operating cash flow from 2023 to 2024. However, the free cash flow remained steady, indicating efficient capital expenditure management. The operating cash flow to net income ratio was relatively low at 0.66, suggesting potential room for improvement in cash generation relative to earnings.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
887.78M631.78M630.55M650.99M660.29M
Gross Profit
887.78M797.32M630.55M650.99M660.29M
EBIT
-652.83M195.92M271.82M222.83M103.49M
EBITDA
0.00197.45M254.05M266.00M138.12M
Net Income Common Stockholders
195.46M144.68M166.07M175.89M83.65M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.03B1.13B2.11B4.26B1.98B
Total Assets
18.03B17.36B16.99B16.81B14.93B
Total Debt
538.63M729.40M1.14B485.16M474.97M
Net Debt
340.22M-71.95M564.37M-1.39B-158.23M
Total Liabilities
15.36B15.06B14.85B14.60B474.97M
Stockholders Equity
2.68B2.30B2.14B2.21B2.13B
Cash FlowFree Cash Flow
129.43M126.92M559.21M122.14M53.97M
Operating Cash Flow
129.43M148.55M574.04M142.66M82.24M
Investing Cash Flow
-298.04M-55.40M-2.04B-660.00M-1.27B
Financing Cash Flow
459.30M132.21M167.64M1.76B1.40B

Renasant Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price31.85
Price Trends
50DMA
33.27
Negative
100DMA
34.86
Negative
200DMA
34.17
Negative
Market Momentum
MACD
-0.90
Negative
RSI
54.18
Neutral
STOCH
95.85
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RNST, the sentiment is Neutral. The current price of 31.85 is above the 20-day moving average (MA) of 30.06, below the 50-day MA of 33.27, and below the 200-day MA of 34.17, indicating a neutral trend. The MACD of -0.90 indicates Negative momentum. The RSI at 54.18 is Neutral, neither overbought nor oversold. The STOCH value of 95.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RNST.

Renasant Risk Analysis

Renasant disclosed 40 risk factors in its most recent earnings report. Renasant reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Renasant Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
UCUCB
79
Outperform
$3.26B12.917.64%3.48%6.75%37.84%
FBFBP
77
Outperform
$3.14B10.6418.55%3.43%4.84%4.75%
72
Outperform
$3.03B11.7210.25%1.16%5.14%
70
Outperform
$3.02B9.937.83%2.76%13.04%31.39%
68
Neutral
$2.77B9.6710.60%4.13%21.45%5.62%
FHFHB
66
Neutral
$2.89B12.449.11%4.55%-0.47%5.97%
63
Neutral
$12.32B9.527.89%79.24%12.74%-4.55%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RNST
Renasant
31.85
3.16
11.01%
FBP
First Bancorp Puerto Rico
19.26
2.37
14.03%
FULT
Fulton Financial
16.69
0.53
3.28%
UCB
United Community Banks
27.26
2.46
9.92%
WSFS
Wsfs Financial
51.66
9.04
21.21%
FHB
First Hawaiian
22.85
2.23
10.81%

Renasant Earnings Call Summary

Earnings Call Date: Apr 22, 2025 | % Change Since: 11.25% | Next Earnings Date: Jul 29, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong loan and deposit growth, successful merger completion, and improvements in asset quality and deposit costs. However, there were concerns about increased non-interest expenses and ongoing economic uncertainty. Overall, positive aspects outweighed the negative, indicating a promising outlook despite some challenges.
Highlights
Merger with First Bancshares Completed
On April 1, Renasant Corporation successfully completed the merger with First Bancshares, which is expected to enhance profitability and organic growth.
Strong Loan and Deposit Growth
Loans increased by $170.6 million linked quarter, representing a 5.4% annualized growth rate, while deposits grew by approximately $200 million.
Improvement in Deposit Mix and Cost
Noninterest-bearing deposits increased by $137 million, and the total cost of deposits decreased by 13 basis points.
Asset Quality Improvement
Improvements were seen in all credit quality metrics, with net recoveries of $125,000 and a decrease in the ACL as a percentage of total loans to 1.56%.
Increase in Book Value Per Share
Book value per share and tangible book value per share increased by 1.6% and 2.7%, respectively, quarter-over-quarter.
Lowlights
Increased Non-Interest Expense
Non-interest expense was $113.9 million for the first quarter, with an increase of $415,000 linked quarter, excluding merger and conversion expenses.
Economic Uncertainty
The economic outlook remains uncertain, which could affect future performance and loan payoff timing.
Company Guidance
In the first quarter of 2025, Renasant Corporation reported strong financial performance, marked by earnings of $41.5 million or $0.65 per diluted share. Net interest income increased to $134.2 million, driven by solid loan growth of $170.6 million and a $200 million increase in total deposits, including $137 million from noninterest-bearing deposits. The cost of deposits decreased by 13 basis points, while non-interest income rose by $2.2 million, primarily due to a $1.3 million increase in mortgage banking income. Non-interest expenses were $113.9 million, or $113.1 million excluding merger and conversion costs. The company's adjusted pre-provision net revenue rose by $3.3 million, with an adjusted net interest margin increase of 8 basis points to 3.42%. Renasant's capital ratios exceed regulatory minimums, with book value per share and tangible book value per share rising by 1.6% and 2.7%, respectively. The company recorded a $4.8 million credit loss provision, and its allowance for credit losses as a percentage of total loans slightly decreased to 1.56%.

Renasant Corporate Events

M&A TransactionsFinancial Disclosures
Renasant Completes Merger with The First Bancshares
Positive
Apr 22, 2025

On April 22, 2025, Renasant Corporation announced its earnings for the first quarter of 2025, reporting a net income of $41.5 million and a diluted EPS of $0.65. The company completed its merger with The First Bancshares, Inc. on April 1, 2025, which is expected to enhance its profitability and operational reach in attractive banking markets. The merger added significant assets, loans, and deposits to Renasant’s portfolio, positioning the company for accelerated growth. The report highlighted improvements in net interest income, noninterest income, and credit quality, while also noting a decrease in noninterest expenses.

Spark’s Take on RNST Stock

According to Spark, TipRanks’ AI Analyst, RNST is a Neutral.

Renasant’s overall stock score reflects strong financial performance and a favorable valuation offset by weak technical indicators. The positive guidance from the latest earnings call and anticipated merger benefits provide a solid outlook, though caution is warranted due to technical weaknesses and cash flow concerns.

To see Spark’s full report on RNST stock, click here.

Executive/Board ChangesM&A Transactions
Renasant Completes Merger with The First Bancshares
Neutral
Apr 4, 2025

On April 1, 2025, Renasant Corporation completed its merger with The First Bancshares, Inc., with Renasant continuing as the surviving corporation. The merger also involved the integration of The First Bank into Renasant Bank. As a result of the merger, Renasant assumed subordinated debentures and notes totaling $133,786,000 and expanded its board of directors to include members from The First. The transition in leadership will see Kevin D. Chapman assume the role of CEO, while E. Robinson McGraw will resign as an officer but remain Chairman of the Board. The integration of The First’s operations is expected to be completed by early August 2025.

M&A TransactionsBusiness Operations and Strategy
Renasant Corporation to Present at 2025 Investor Conferences
Neutral
Feb 12, 2025

Renasant Corporation will present to investors at various conferences in early 2025, sharing materials related to their operations and financial outlook. The company emphasizes caution regarding forward-looking statements, citing risks such as integration challenges from its proposed merger with The First Bancshares, Inc., economic conditions, and regulatory changes, which could impact its future performance and stakeholder interests.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Renasant Corporation Reports Q4 2024 Earnings and Merger Plans
Positive
Jan 28, 2025

Renasant Corporation, a financial services company, announced its earnings for the fourth quarter of 2024 on January 28, 2025. The company’s net income for the quarter was $44.7 million, with a diluted EPS of $0.70 and adjusted diluted EPS of $0.73. Net interest income increased slightly to $135.5 million, while noninterest income saw a decrease due to a previous gain on the sale of an insurance agency. The company’s credit quality showed improvement, with nonperforming loans decreasing and a provision for credit losses of $2.6 million recorded for the quarter. The company is also focused on its strategic merger with The First Bancshares, Inc., aiming to integrate and grow its operations through the acquisition.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.