First Republic Bank (FRC) Cut to “Hold” at Zacks Investment Research
First Republic Bank (NYSE:FRC) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Wednesday.
According to Zacks, “First Republic’s estimates have been stable lately ahead of its third-quarter 2016 earnings release. The company has positive record of earnings surprises in recent quarters. The company is well positioned for growth, given its simpler business model and non-engagement in additional businesses. Also, an eventual rise in interest rates is projected to bolster net interest income going forward. Further, with improving economy, the company should benefit from continued rise in loans and deposits. However, margin pressure is expected to continue until there is a significant rise in interest rate. Also, rising expenses will deter bottom-line expansion, resulting mainly from stringent regulatory norms. Moreover, stricter regulatory capital requirements are likely to limit flexibility in business operations.”
A number of other research firms also recently weighed in on FRC. Barclays PLC boosted their price target on shares of First Republic Bank from $78.00 to $84.00 and gave the stock an “overweight” rating in a research note on Thursday, August 11th. BMO Capital Markets reiterated a “market perform” rating and set a $71.00 price target on shares of First Republic Bank in a report on Friday, July 15th. FBR & Co restated a “hold” rating on shares of First Republic Bank in a report on Sunday, July 17th. Keefe, Bruyette & Woods restated a “hold” rating on shares of First Republic Bank in a report on Sunday, July 17th. Finally, JPMorgan Chase & Co. restated a “buy” rating on shares of First Republic Bank in a report on Sunday, July 17th. Seven equities research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company’s stock. The stock has a consensus rating of “Buy” and an average price target of $75.23.
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First Republic Bank (NYSE:FRC) traded up 0.15% on Wednesday, hitting $78.50. 622,624 shares of the stock were exchanged. The stock has a market capitalization of $11.76 billion, a P/E ratio of 22.03 and a beta of 1.06. The company has a 50 day moving average of $76.32 and a 200 day moving average of $71.40. First Republic Bank has a one year low of $56.32 and a one year high of $78.77.
First Republic Bank (NYSE:FRC) last posted its quarterly earnings results on Thursday, July 14th. The company reported $0.97 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.91 by $0.06. The business earned $535.10 million during the quarter, compared to the consensus estimate of $568.53 million. First Republic Bank had a net margin of 27.20% and a return on equity of 12.59%. During the same period in the previous year, the firm posted $0.73 earnings per share. On average, equities research analysts forecast that First Republic Bank will post $3.91 earnings per share for the current fiscal year.
Several hedge funds have recently made changes to their positions in the company. Emerald Acquisition Ltd. acquired a new stake in shares of First Republic Bank during the second quarter worth approximately $73,509,000. Fiera Capital Corp acquired a new stake in shares of First Republic Bank during the second quarter worth approximately $67,938,000. Royal Bank of Canada raised its stake in shares of First Republic Bank by 66.9% in the second quarter. Royal Bank of Canada now owns 2,320,272 shares of the company’s stock worth $162,397,000 after buying an additional 929,702 shares in the last quarter. Allianz Asset Management AG raised its stake in shares of First Republic Bank by 253.2% in the second quarter. Allianz Asset Management AG now owns 727,776 shares of the company’s stock worth $50,937,000 after buying an additional 521,738 shares in the last quarter. Finally, Vanguard Group Inc. raised its stake in shares of First Republic Bank by 4.8% in the second quarter. Vanguard Group Inc. now owns 10,719,022 shares of the company’s stock worth $750,225,000 after buying an additional 493,190 shares in the last quarter. 98.24% of the stock is currently owned by institutional investors and hedge funds.
First Republic Bank Company Profile
First Republic Bank is a commercial bank and trust company. The Bank specializes in providing services, including private banking, private business banking, real estate lending and wealth management services, including trust and custody services, to clients in selected metropolitan areas in the United States.
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