U.S. Bancorp (USB) Lowered to “Sell” at Zacks Investment Research
U.S. Bancorp (NYSE:USB) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Tuesday.
According to Zacks, “Shares of U.S. Bancorp have underperformed the industry, year to date. However, the company boasts an impressive earnings surprise history. The company has surpassed the Zacks Consensus Estimate for earnings in three of the trailing four quarters. Notably, third-quarter 2017 earnings came in line with the Zacks Consensus Estimate. Easing margin pressure on rising rates and high net interest income was witnessed in the quarter. Average loans and deposits balances also escalated. However, mortgage banking revenues and higher provisions disappointed. We believe the company’s prospects will likely get support from its solid business model, core franchise and diverse revenue streams. However, escalating expenses and litigations remain key concerns. Also, stretched valuation underlines limited upside potential.”
Other equities analysts have also recently issued reports about the company. Jefferies Group LLC restated a “buy” rating and set a $59.00 target price on shares of U.S. Bancorp in a report on Friday, August 11th. Argus raised U.S. Bancorp from a “hold” rating to a “buy” rating and set a $57.00 price target on the stock in a research report on Thursday, July 20th. BidaskClub raised U.S. Bancorp from a “hold” rating to a “buy” rating in a research report on Thursday, July 6th. Robert W. Baird reaffirmed a “hold” rating and issued a $48.00 price target on shares of U.S. Bancorp in a research report on Friday, October 6th. Finally, Oppenheimer Holdings, Inc. reaffirmed a “hold” rating on shares of U.S. Bancorp in a research report on Wednesday, July 19th. Four investment analysts have rated the stock with a sell rating, thirteen have given a hold rating and four have issued a buy rating to the company. The stock currently has an average rating of “Hold” and an average target price of $54.06.
U.S. Bancorp (NYSE:USB) traded up 0.157% during trading on Tuesday, reaching $54.215. 4,003,545 shares of the company’s stock were exchanged. The company has a market cap of $90.69 billion, a P/E ratio of 16.379 and a beta of 0.87. U.S. Bancorp has a 12-month low of $43.50 and a 12-month high of $56.61. The stock’s 50-day moving average is $53.03 and its 200-day moving average is $52.16.
U.S. Bancorp (NYSE:USB) last released its quarterly earnings results on Wednesday, October 18th. The financial services provider reported $0.88 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.88. U.S. Bancorp had a return on equity of 13.91% and a net margin of 25.46%. The business had revenue of $5.61 billion during the quarter, compared to analysts’ expectations of $5.60 billion. During the same period in the prior year, the business posted $0.84 EPS. The company’s revenue was up 4.1% compared to the same quarter last year. Analysts predict that U.S. Bancorp will post $3.43 EPS for the current fiscal year.
U.S. Bancorp announced that its board has authorized a share buyback plan on Wednesday, June 28th that allows the company to repurchase $2.60 billion in outstanding shares. This repurchase authorization allows the financial services provider to repurchase up to 3% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s board of directors believes its shares are undervalued.
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Several institutional investors have recently bought and sold shares of USB. Norinchukin Bank The raised its holdings in U.S. Bancorp by 8.5% during the third quarter. Norinchukin Bank The now owns 38,609 shares of the financial services provider’s stock worth $1,656,000 after purchasing an additional 3,017 shares during the last quarter. Gerstein Fisher raised its holdings in U.S. Bancorp by 23.3% during the third quarter. Gerstein Fisher now owns 12,827 shares of the financial services provider’s stock worth $526,000 after purchasing an additional 2,425 shares during the last quarter. NN Investment Partners Holdings N.V. raised its holdings in U.S. Bancorp by 12.8% during the second quarter. NN Investment Partners Holdings N.V. now owns 1,440,460 shares of the financial services provider’s stock worth $58,092,000 after purchasing an additional 163,847 shares during the last quarter. Shelton Capital Management raised its holdings in U.S. Bancorp by 51.2% during the first quarter. Shelton Capital Management now owns 133,200 shares of the financial services provider’s stock worth $6,860,000 after purchasing an additional 45,116 shares during the last quarter. Finally, Suntrust Banks Inc. raised its holdings in U.S. Bancorp by 14.4% during the fourth quarter. Suntrust Banks Inc. now owns 382,846 shares of the financial services provider’s stock worth $16,335,000 after purchasing an additional 48,268 shares during the last quarter. Hedge funds and other institutional investors own 73.95% of the company’s stock.
About U.S. Bancorp
U.S. Bancorp is a multi-state financial services holding company. The Company provides a full range of financial services, including lending and depository services, cash management, capital markets, and trust and investment management services. It also engages in credit card services, merchant and automated teller machine (ATM) processing, mortgage banking, insurance, brokerage and leasing.
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