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Stellar Bancorp Inc

Stellar Bancorp Inc

STEL
$39.32USD↑+0.00%+0.00 today

MARKET CAP

2.0B

P/E (TTM)

19.1x

FWD P/E

—

DAY RANGE

$39 – $39

52W RANGE

$39
$39

AI Summary

Stalk
Buy NowMedium

STEL remains in a Stage 2 advance driven by a persistent Higher Highs & Higher Lows pattern and supportive EMAs. Price is consolidating above the 9, 21, and 50 EMAs with pullbacks held by the cluster, offering a favorable entry opportunity. Volume expands on rallies and contracts on pullbacks, confirming continuation bias. OB/OS and RSI levels are neutral, reducing timing constraints. A sustained break below the EMA cluster would invalidate the bullish stance.

  • ↑Q2 loan originations reached $640M, nearly double prior period
  • ↑Net interest income rose to $100.6M in Q3
  • ↓Net interest margin fell to 4.2% in Q3, down sequentially
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The case for & against

Bull & Bear analysis

Bullish

Stellar Bancorp (NASDAQ: STLR) operates as a community-focused bank primarily serving the Texas market through a diverse range of financial services. The bank positions itself for future growth by capitalizing on its strong capital base, enhancement of customer relationships, and a robust loan origination strategy amidst ongoing competitive and regulatory changes in the financial sector. After merging with Prosperity Bancshares, Stellar looks to leverage synergies and increase market presence while focusing on maintaining high credit quality and sustainable growth.

Bull says

  • ↑Q2 loan originations reached $640M, nearly double prior period
  • ↑Net interest income rose to $100.6M in Q3
  • ↑Risk-based capital ratio at 16.33% enables buybacks
  • ↑Tangible book value up 10.8% YoY to $19.94 per share
  • ↑51% of new deposits from unbanked clients boosting growth
  • ↑Strong pipeline and M&A prospects drive future expansion

Bear says

  • ↓Net interest margin fell to 4.2% in Q3, down sequentially
  • ↓Non-interest expenses climbed to $73.1M in Q3, pressuring profits
  • ↓Net charge-offs reached $3.3M, CRE risks may require reserves
  • ↓Fierce Texas market competition could limit loan pricing power
  • ↓Economic volatility and tariffs add uncertainty to lending practices
  • ↓Margin and cost pressures may hinder long-term profitability

Investment themes with STEL

Regional Banks↑ +0.50%

FLG · TCBI · ZION

Earnings Call · Q3 2024 · Mgmt. Guidance

Updated 07-04-2026neutral

Transcript signals

Bull points

  • Particular to the third quarter, we originated about a little in excess of $300 million for the quarter, which was $50 million more than the second quarter. So we were pleased with that number.
  • On the customer, how we feel around the customer sentiment, third quarter was the largest of the last three quarters as far as dollar amount of opened accounts. Real pleased with that.
  • On the customer, how we feel around the customer sentiment, third quarter was the largest of the last three quarters as far as dollar amount of opened accounts. Real pleased with that.

Bear points

  • We do think there's a need for us to kind of get away from this between $10 and $11 billion to help us with some of the expense level that we have,
  • I wouldn't say that loan demand is huge. It's good.
  • I wouldn't say that loan demand is huge. It's good.
Read full transcript analysis ›