Cullen/Frost Bankers Inc. (CFR) Stock Rating Upgraded by Zacks Investment Research
Cullen/Frost Bankers Inc. (NYSE:CFR) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued to clients and investors on Thursday.
According to Zacks, “Cullen/Frost’s estimates have been stable lately ahead of its third-quarter 2016 earnings release. The company’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.”
A number of other brokerages also recently issued reports on CFR. Deutsche Bank AG lifted their price target on shares of Cullen/Frost Bankers from $66.00 to $77.00 and gave the company a “hold” rating in a report on Tuesday. Barclays PLC reduced their price target on shares of Cullen/Frost Bankers from $72.00 to $69.00 and set an “underweight” rating on the stock in a report on Tuesday. Wedbush assumed coverage on shares of Cullen/Frost Bankers in a report on Thursday, October 6th. They issued a “neutral” rating and a $68.00 price target on the stock. RBC Capital Markets reiterated a “sector perform” rating and issued a $70.00 price target (up from $63.00) on shares of Cullen/Frost Bankers in a report on Thursday, July 28th. Finally, Keefe, Bruyette & Woods lifted their price target on shares of Cullen/Frost Bankers from $57.00 to $68.00 and gave the company a “market perform” rating in a report on Thursday, July 28th. Four analysts have rated the stock with a sell rating, nine have given a hold rating and three have given a buy rating to the company. The company presently has an average rating of “Hold” and an average target price of $67.83.
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Cullen/Frost Bankers (NYSE:CFR) traded down 3.28% during mid-day trading on Thursday, hitting $70.25. 133,428 shares of the stock were exchanged. Cullen/Frost Bankers has a 52 week low of $42.41 and a 52 week high of $74.12. The firm has a market capitalization of $4.36 billion, a price-to-earnings ratio of 16.60 and a beta of 1.11. The company’s 50-day moving average price is $71.30 and its 200 day moving average price is $65.58.
Cullen/Frost Bankers (NYSE:CFR) last announced its quarterly earnings results on Wednesday, July 27th. The company reported $1.11 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 expect that Cullen/Frost Bankers will post $4.56 EPS for the current year.
The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 15th. Shareholders of record on Wednesday, August 31st were given a $0.54 dividend. The ex-dividend date of this dividend was Monday, August 29th. This represents a $2.16 annualized dividend and a yield of 2.97%. Cullen/Frost Bankers’s dividend payout ratio (DPR) is 50.82%.
In other news, Chairman Phillip D. Green sold 13,500 shares of the company’s stock in a transaction that occurred on Thursday, July 28th. The shares were sold at an average price of $69.42, for a total value of $937,170.00. Following the completion of the sale, the chairman now owns 49,763 shares of the company’s stock, valued at approximately $3,454,547.46. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Richard Kardys sold 25,500 shares of the company’s stock in a transaction that occurred on Thursday, July 28th. The stock was 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 of the company’s stock, valued at approximately $8,906,544.12. The disclosure for this sale can be found here. 8.03% of the stock is currently owned by company insiders.
Several large investors have recently made changes to their positions in CFR. Bradley Foster & Sargent Inc. CT boosted its stake in shares of Cullen/Frost Bankers by 0.3% in the second quarter. Bradley Foster & Sargent Inc. CT now owns 7,785 shares of the company’s stock valued at $496,000 after buying an additional 25 shares during the last quarter. Creative Planning boosted its stake in shares of Cullen/Frost Bankers by 2.9% in the third quarter. Creative Planning now owns 3,224 shares of the company’s stock valued at $232,000 after buying an additional 92 shares during the last quarter. State Treasurer State of Michigan boosted its stake in shares of Cullen/Frost Bankers by 0.5% in the second quarter. State Treasurer State of Michigan now owns 21,900 shares of the company’s stock valued at $1,396,000 after buying an additional 100 shares during the last quarter. Bessemer Group Inc. boosted its stake in shares of Cullen/Frost Bankers by 5.3% in the first quarter. Bessemer Group Inc. now owns 2,033 shares of the company’s stock valued at $112,000 after buying an additional 103 shares during the last quarter. Finally, First Manhattan Co. boosted its stake in shares of Cullen/Frost Bankers by 0.3% in the second quarter. First Manhattan Co. now owns 64,353 shares of the company’s stock valued at $4,101,000 after buying an additional 200 shares during the last quarter. 84.76% of the stock is owned by hedge funds and other institutional investors.
Cullen/Frost Bankers Company Profile
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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