First Republic Bank (FRC) Downgraded by Zacks Investment Research

First Republic Bank (NYSE:FRC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Monday.

According to Zacks, “Shares of First Republic have underperformed the industry over the last six months. Also, its earnings surprise history is not impressive. The bank missed the Zacks Consensus Estimate in three of the trailing four quarters. The company’s fourth-quarter 2017 results disappointed on rising costs and provisions. Despite rising rates, net interest margin also declined. However, a considerable rise in loans and deposit balances were recorded aiding high revenues. Though the company remains well positioned for growth, given its simpler business model and non-engagement in additional businesses, escalating costs owing to investments in digital initiatives are expected to hurt the bank’s bottom-line growth further. Additionally, First Republic’s stretched valuation indicates limited upside potential for the stock.”

FRC has been the topic of several other research reports. Royal Bank of Canada reaffirmed a “hold” rating on shares of First Republic Bank in a report on Wednesday, January 17th. Barclays upped their price objective on First Republic Bank from $98.00 to $101.00 and gave the stock an “equal weight” rating in a report on Tuesday, January 2nd. Morgan Stanley reaffirmed an “equal weight” rating and set a $106.00 price objective on shares of First Republic Bank in a report on Thursday, December 14th. Jefferies Group downgraded First Republic Bank from a “buy” rating to a “hold” rating in a report on Friday, December 15th. Finally, Piper Jaffray Companies set a $99.00 price objective on First Republic Bank and gave the stock a “hold” rating in a report on Sunday, October 15th. Two investment analysts have rated the stock with a sell rating, ten have issued a hold rating and four have given a buy rating to the stock. First Republic Bank currently has a consensus rating of “Hold” and a consensus target price of $102.21.

First Republic Bank (NYSE:FRC) traded up $3.96 during trading hours on Monday, reaching $89.93. The company’s stock had a trading volume of 2,465,300 shares, compared to its average volume of 1,957,977. First Republic Bank has a 12-month low of $84.56 and a 12-month high of $105.52. The company has a debt-to-equity ratio of 1.46, a quick ratio of 0.94 and a current ratio of 0.94. The firm has a market cap of $14,187.04, a P/E ratio of 20.87, a price-to-earnings-growth ratio of 1.47 and a beta of 0.96.

First Republic Bank (NYSE:FRC) last posted its quarterly earnings data on Tuesday, January 16th. The bank reported $1.10 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.15 by ($0.05). First Republic Bank had a return on equity of 11.80% and a net margin of 26.02%. The firm had revenue of $699.20 million for the quarter, compared to analyst estimates of $688.48 million. During the same period in the prior year, the company posted $1.03 EPS. The firm’s quarterly revenue was up 16.6% compared to the same quarter last year. analysts forecast that First Republic Bank will post 4.83 EPS for the current fiscal year.

Several institutional investors have recently modified their holdings of the business. Zions Bancorporation bought a new stake in shares of First Republic Bank in the 3rd quarter valued at $160,000. Cambridge Investment Research Advisors Inc. bought a new stake in shares of First Republic Bank in the 3rd quarter valued at $209,000. Mawer Investment Management Ltd. bought a new stake in shares of First Republic Bank in the 3rd quarter valued at $209,000. Brookmont Capital Management bought a new stake in shares of First Republic Bank in the 3rd quarter valued at $210,000. Finally, Toronto Dominion Bank increased its position in shares of First Republic Bank by 8.9% in the 2nd quarter. Toronto Dominion Bank now owns 2,117 shares of the bank’s stock valued at $212,000 after buying an additional 173 shares in the last quarter. Institutional investors own 98.29% of the company’s stock.

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About First Republic Bank

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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