TriCo Bancshares Soars 10.4% on Value Opportunity

On April 10, 2025, TriCo Bancshares surged 10.4% in pre-market trading, marking a significant rise in its stock price.

TriCo Bancshares, a bank holding company for Tri Counties Bank, offers a range of commercial banking services to both individual and corporate customers. The company has maintained stable and growing dividends over the past decade, with a current dividend yield of 3.7%. This yield, while lower than some top-tier US dividend payers, is supported by a sustainable payout ratio of 38%, indicating that dividends are well covered by earnings.

Recent developments include Franklin Resources Inc. increasing its position in TriCo Bancshares by 2.4% during the fourth quarter, while Sei Investments Co. reduced its stake by 18.6% in the same period. These institutional moves reflect varying levels of confidence in the company's future prospects.

TriCo Bancshares' stock has been trading at nearly half its estimated fair value, presenting a potential opportunity for investors seeking value. The company's recent board affirmation of a $0.33 per share dividend underscores its commitment to providing reliable returns to shareholders, despite marginal declines in net income.