Cullen/Frost Bankers Inc. (CFR) Rating Lowered to Hold at Zacks Investment Research
Cullen/Frost Bankers Inc. (NYSE:CFR) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Tuesday.
According to Zacks, “Cullen/Frost’s estimates have been stable lately ahead of the company’s third-quarter 2016 earnings release. The company has positive record of earnings surprises in recent quarters. Cullen/Frost’s organic growth remains on track with increasing loans and deposits balances. Further, in a rising interest rate environment, the company’s non-interest bearing deposits, which are a major low-cost funding source, will likely have a positive impact on net interest income and net interest margin. Notably, management expects 2016 EPS to exceed market expectations of $4.39. However, rising costs stemming largely from expanding franchise are likely to deter bottom-line growth. Also, significant exposure to the risky real estate loans and deteriorating credit quality as a result of the still weak energy sector, continue to pose near-term headwinds, along with stringent regulatory requirements.”
CFR has been the topic of a number of other reports. Barclays PLC increased their price target on shares of Cullen/Frost Bankers from $70.00 to $72.00 and gave the stock an “underweight” rating in a report on Thursday, July 28th. Maxim Group increased their price target on shares of Cullen/Frost Bankers from $70.00 to $85.00 and gave the stock a “buy” rating in a report on Thursday, July 28th. Evercore ISI raised shares of Cullen/Frost Bankers from a “sell” rating to a “hold” rating and increased their price target for the stock from $52.00 to $67.00 in a report on Thursday, June 9th. Compass Point began coverage on shares of Cullen/Frost Bankers in a report on Tuesday, June 7th. They set a “neutral” rating and a $65.00 price target on the stock. Finally, Keefe, Bruyette & Woods increased their price target on shares of Cullen/Frost Bankers from $57.00 to $68.00 and gave the stock a “market perform” rating in a report on Thursday, July 28th. Four research analysts have rated the stock with a sell rating, eight have given a hold rating and four have given a buy rating to the company. The stock currently has an average rating of “Hold” and an average price target of $67.28.
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Shares of Cullen/Frost Bankers (NYSE:CFR) opened at 72.21 on Tuesday. The stock has a 50 day moving average of $71.15 and a 200-day moving average of $65.24. Cullen/Frost Bankers has a 12-month low of $42.41 and a 12-month high of $74.12. The company has a market capitalization of $4.48 billion, a P/E ratio of 17.06 and a beta of 1.11.
Cullen/Frost Bankers (NYSE:CFR) last released its quarterly earnings data on Wednesday, July 27th. The company reported $1.11 EPS for the quarter, beating the consensus estimate of $1.05 by $0.06. Cullen/Frost Bankers had a net margin of 24.81% and a return on equity of 9.67%. During the same period in the prior year, the company posted $1.11 EPS. Equities research analysts forecast that Cullen/Frost Bankers will post $4.56 EPS for the current year.
The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 15th. Investors of record on Wednesday, August 31st were given a dividend of $0.54 per share. This represents a $2.16 annualized dividend and a yield of 2.99%. The ex-dividend date was Monday, August 29th. Cullen/Frost Bankers’s payout ratio is currently 50.82%.
In related news, insider Richard Kardys sold 25,500 shares of the firm’s stock in a transaction dated Thursday, July 28th. The shares were sold at an average price of $69.54, for a total transaction of $1,773,270.00. Following the completion of the sale, the insider now directly owns 128,078 shares in the company, valued at $8,906,544.12. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Chairman Phillip D. Green sold 13,500 shares of the firm’s stock in a transaction dated Thursday, July 28th. The stock was sold at an average price of $69.42, for a total transaction of $937,170.00. Following the sale, the chairman now owns 49,763 shares of the company’s stock, valued at $3,454,547.46. The disclosure for this sale can be found here. Corporate insiders own 8.03% of the company’s stock.
A number of large investors have recently added to or reduced their stakes in CFR. BNP Paribas Arbitrage SA raised its position in shares of Cullen/Frost Bankers by 247.8% in the second quarter. BNP Paribas Arbitrage SA now owns 27,304 shares of the company’s stock valued at $1,740,000 after buying an additional 19,454 shares during the period. Fisher Asset Management LLC raised its position in shares of Cullen/Frost Bankers by 4.6% in the second quarter. Fisher Asset Management LLC now owns 252,202 shares of the company’s stock valued at $16,262,000 after buying an additional 11,192 shares during the period. Independent Portfolio Consultants Inc. raised its position in shares of Cullen/Frost Bankers by 59.7% in the second quarter. Independent Portfolio Consultants Inc. now owns 5,685 shares of the company’s stock valued at $362,000 after buying an additional 2,125 shares during the period. BlackRock Group LTD raised its position in shares of Cullen/Frost Bankers by 5.9% in the first quarter. BlackRock Group LTD now owns 62,048 shares of the company’s stock valued at $3,420,000 after buying an additional 3,462 shares during the period. Finally, Lathrop Investment Management Corp raised its position in shares of Cullen/Frost Bankers by 2.5% in the second quarter. Lathrop Investment Management Corp now owns 162,902 shares of the company’s stock valued at $10,382,000 after buying an additional 3,945 shares during the period. Hedge funds and other institutional investors own 84.81% of the company’s stock.
About Cullen/Frost Bankers
Cullen/Frost Bankers, Inc is a financial holding and bank holding company. The Company, through its subsidiaries, offers commercial and consumer banking services, as well as trust and investment management, insurance, brokerage, mutual funds, leasing, treasury management, capital markets advisory and item processing services.
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