S&T Bancorp (STBA) just paired a higher quarterly dividend with a fresh share repurchase authorization, giving investors new information on how the bank is currently using its capital and rewarding shareholders.

Those dividend and buyback moves come after a stretch where the share price has been relatively firm, with a 90 day share price return of 13.57% and a 1 year total shareholder return of 13.58%. This suggests momentum has been building rather than fading.

If this kind of capital return story catches your attention, it could be a good moment to broaden your search with fast growing stocks with high insider ownership for more ideas beyond regional banks.

With S&T Bancorp trading around US$41.69, an intrinsic value estimate that sits lower by roughly 37% raises a key question for you: is this a genuine value gap, or are markets already factoring in future growth?

Most Popular Narrative: 4.8% Undervalued

With S&T Bancorp last closing at $41.69 and the most followed narrative pointing to a fair value of $43.80, the current price sits slightly below that assessment, which is built on detailed assumptions about future revenue, margins and valuation multiples.

Robust, consistent loan growth across core business lines (including commercial real estate, mortgage, and home equity) and an expanding commercial banking team signal durable revenue momentum and organic asset expansion, which can underpin higher revenues over the long term.

Curious what kind of revenue path and margin profile need to hold for that fair value to stack up? The narrative leans on steady growth, a richer earnings multiple and a specific discount rate to tie it all together, but the exact mix of assumptions might surprise you.

Result: Fair Value of $43.80 (UNDERVALUED)

However, there are still clear risks, including tougher digital competition and higher regulatory costs, which could pressure margins and challenge the current fair value story.

Build Your Own S&T Bancorp Narrative

If you look at the numbers and reach a different conclusion, or simply prefer to build your own view from scratch, you can shape a custom narrative in just a few minutes with Do it your way.

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding S&T Bancorp.

Looking for more investment ideas?

If S&T Bancorp has sharpened your interest, do not stop here. Broaden your watchlist with a few focused screens that highlight very different types of opportunities.

• Target income potential by checking out these 14 dividend stocks with yields > 3% that might suit a portfolio built around regular cash returns.
• Tap into new technology themes by scanning these 24 AI penny stocks shaping the future of automation and data driven tools.
• Hunt for potential mispriced names by reviewing these 880 undervalued stocks based on cash flows that currently screen below their estimated cash flow value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.