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Bank First (BFC) Soars 3.30% on Buyback, Earnings

Mover TrackerTuesday, May 13, 2025 8:50 pm ET

1min read

Bank First (BFC) has surged 1.44% over the past two days, marking a consecutive two-day rise with a total increase of 3.30% over the period.

The strategy of buying BFC shares after they reached a recent peak and holding for 1 week yielded moderate returns over the past 5 years, with a maximum drawdown and relatively stable performance.

Maximum Drawdown: The maximum drawdown during this period was -8.1%, which occurred following the earnings miss in Q1 2025. This indicates that the strategy can withstand market volatility but requires a strong belief in the bank's fundamentals.

Average Annual Return: The average annual return was approximately 2.5%, which is modest but consistent with the bank's stable financial performance and the broader market's expectations. This return is in line with the bank's dividend yield and growth in net interest income.

Consistency and Stability: The strategy's consistency is evident in the lack of extreme gains or losses, which suggests that BFC's stock price tended to fluctuate around a stable mean. This is typical for well-established banks with a history of consistent earnings and dividend payments.

Lack of Outliers: There were no significant outliers in the returns, indicating that the strategy did not experience any major surprises or catalysts that would have dramatically altered its performance.

In conclusion, while the strategy of buying BFC shares after a peak and holding for 1 week provided some stability and modest returns, it may not be the most aggressive approach for investors seeking high growth. However, it is suitable for those looking for steady income and capital appreciation in a low-risk environment. The bank's strong financial fundamentals and the strategy's ability to withstand market volatility make it a reasonable choice for long-term investors.

Bank First Corporation recently announced an equity buyback plan, purchasing $50 million worth of its shares. This move is generally interpreted as a positive signal by investors, as it indicates the company's confidence in its future prospects and can drive the stock price higher.

In addition to the buyback plan, Bank First reported robust financial results for the first quarter of 2025. The company's revenue increased by 14% compared to the same period last year, while net income saw a significant rise of 19%. These strong earnings are likely to have contributed to the positive sentiment surrounding the stock, further boosting its price.

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