Zacks Investment Research Downgrades Cullen/Frost Bankers, Inc. (CFR) to Sell
Cullen/Frost Bankers, Inc. (NYSE:CFR) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Tuesday.
According to Zacks, “Shares of Cullen/Frost have underperformed the industry over the last six months. Estimates have declined lately ahead of the company’s Q3 earnings release. However, the company boasts an impressive earnings surprise history. It has surpassed the Zacks Consensus Estimate for earnings in three of the trailing four quarters. With a rising interest rate environment and improving non-interest bearing deposits, the company's net interest income and net interest margin is expected to grow. However, rising costs stemming mainly from expanding franchise are likely to deter bottom-line growth to some extent. Also, the company’s risky loan portfolio keeps us apprehensive.”
Several other research analysts have also recently issued reports on CFR. BidaskClub cut shares of Cullen/Frost Bankers from a “sell” rating to a “strong sell” rating in a report on Friday, August 11th. Citigroup Inc. cut shares of Cullen/Frost Bankers to an “underperform” rating in a report on Thursday, August 10th. They noted that the move was a valuation call. Jefferies Group LLC reissued a “hold” rating and set a $95.00 price target on shares of Cullen/Frost Bankers in a report on Friday, August 11th. Keefe, Bruyette & Woods reissued a “hold” rating and set a $95.00 price target on shares of Cullen/Frost Bankers in a report on Friday, September 29th. Finally, Raymond James Financial, Inc. cut shares of Cullen/Frost Bankers from a “market perform” rating to an “underperform” rating in a report on Thursday, August 10th. Five research analysts have rated the stock with a sell rating, ten have given a hold rating and three have given a buy rating to the company. The stock currently has a consensus rating of “Hold” and an average target price of $97.50.
Cullen/Frost Bankers (NYSE:CFR) traded down 1.34% during trading on Tuesday, hitting $95.82. The company’s stock had a trading volume of 249,871 shares. The company has a 50-day moving average of $90.36 and a 200 day moving average of $91.59. Cullen/Frost Bankers has a one year low of $71.27 and a one year high of $99.20. The firm has a market cap of $6.15 billion, a PE ratio of 18.88 and a beta of 1.35.
Cullen/Frost Bankers (NYSE:CFR) last posted its quarterly earnings results on Thursday, July 27th. The bank reported $1.29 earnings per share (EPS) for the quarter, hitting the consensus estimate of $1.29. The firm had revenue of $295.87 million during the quarter, compared to analysts’ expectations of $316.40 million. Cullen/Frost Bankers had a net margin of 28.49% and a return on equity of 11.23%. During the same period in the prior year, the company posted $1.11 earnings per share. On average, equities analysts forecast that Cullen/Frost Bankers will post $5.23 earnings per share for the current year.
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A number of institutional investors have recently modified their holdings of the business. Vanguard Group Inc. increased its holdings in Cullen/Frost Bankers by 1.9% in the second quarter. Vanguard Group Inc. now owns 5,460,000 shares of the bank’s stock valued at $512,749,000 after buying an additional 103,634 shares in the last quarter. BlackRock Inc. increased its holdings in Cullen/Frost Bankers by 3.9% in the second quarter. BlackRock Inc. now owns 4,879,258 shares of the bank’s stock valued at $458,211,000 after buying an additional 183,302 shares in the last quarter. FMR LLC increased its holdings in Cullen/Frost Bankers by 2.0% in the second quarter. FMR LLC now owns 4,090,392 shares of the bank’s stock valued at $384,130,000 after buying an additional 80,709 shares in the last quarter. JPMorgan Chase & Co. increased its holdings in Cullen/Frost Bankers by 4.9% in the second quarter. JPMorgan Chase & Co. now owns 2,046,915 shares of the bank’s stock valued at $192,225,000 after buying an additional 95,236 shares in the last quarter. Finally, Principal Financial Group Inc. increased its holdings in Cullen/Frost Bankers by 177.5% in the second quarter. Principal Financial Group Inc. now owns 1,830,898 shares of the bank’s stock valued at $171,940,000 after buying an additional 1,171,078 shares in the last quarter. 80.70% of the stock is owned by institutional investors.
About Cullen/Frost Bankers
Cullen/Frost Bankers, Inc is a financial holding company and a bank holding company. The Company, through its subsidiaries, provides a range of products and services throughout Texas markets. The Company’s segments include Banking, Frost Wealth Advisors and Non-Banks. The Banking segment includes both commercial and consumer banking services, and Frost Insurance Agency.
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