Barclays Raises Cadence Bank Preferred Stock to Overweight Amid Shifting Institutional Demand

On December 19, 2024, Barclays elevated its stance on Cadence Bank - Preferred Stock (NYSE: CADE.PRA), shifting the rating from Equal-Weight to Overweight. This positive reassessment reflects growing confidence in the security’s prospects, signaling potential upside momentum for investors tracking this preferred equity. The stockcade of institutional interest has been building, with key market participants adjusting their positioning accordingly.

Fund Positioning and Recent Changes

The broader fund community maintains active engagement with CADE.PRA, with 10 institutional entities currently holding positions in the preferred shares. This represents a notable expansion, with ownership counts climbing by approximately 11% over the past quarter. Institutional holdings paint an interesting picture: average portfolio allocation stands at 0.19%, up 12.21% sequentially. However, total shares held by institutions experienced a slight contraction of 3.87%, settling at 1,225K shares—suggesting a shift in consolidation rather than broad retreat.

ETF Activity and Strategic Repositioning

Major preferred income funds have been recalibrating their exposure to CADE.PRA. The iShares Preferred and Income Securities ETF (PFF) currently maintains 664K shares, down from 708K shares in its previous reporting period—a 6.63% reduction that corresponds to a 6.94% decrease in portfolio weight. Similarly, the Invesco Preferred ETF (PGX) holds 297K shares versus 305K shares previously, representing a 2.59% share count decline and a 5.75% allocation trim.

Meanwhile, Flaherty & Crumrine’s family of funds demonstrated steadier positioning. The Preferred Securities Income Fund maintains 131K shares with no recent adjustments, the Dynamic Preferred & Income Fund holds 58K shares unchanged, and the Total Return Fund’s 24K-share position remains static. This stability among Flaherty & Crumrine vehicles suggests conviction in current valuations, even as larger funds have modestly adjusted their exposure.

The Barclays upgrade and simultaneous institutional reshuffling underscore evolving market dynamics for preferred securities, with CADE.PRA drawing continued scrutiny from sophisticated investors seeking income-oriented opportunities in the preferred space.