BankUnited (NYSE:BKU) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Tuesday.
According to Zacks, “Shares of BankUnited have outperformed the industry in the past six months. Also, the company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters. Further, the company’s fourth-quarter 2017 results reflect higher revenues and lower credit costs. Consistent growth in loans and deposits, and efforts to strengthen fee income sources are expected to drive revenues. The company is well positioned to grow through acquisitions, given its strong liquidity position. However, continued margin pressure (despite increase in interest rates) remains a major concern for the company. Also, persistently increasing expenses hurt its profitability to some extent. Further, a stretched valuation indicates limited upside potential for the stock.”
A number of other equities research analysts have also issued reports on BKU. JPMorgan Chase & Co. lowered BankUnited from a “neutral” rating to an “underweight” rating and set a $35.00 target price for the company. in a research note on Wednesday, November 1st. Deutsche Bank lowered their target price on BankUnited from $42.00 to $40.00 and set a “hold” rating for the company in a research note on Wednesday, November 8th. BMO Capital Markets upgraded BankUnited from a “market perform” rating to an “outperform” rating in a research note on Monday, November 20th. Barclays reiterated a “buy” rating and issued a $42.00 target price on shares of BankUnited in a research note on Tuesday, December 5th. Finally, Morgan Stanley reiterated an “overweight” rating and issued a $46.00 target price on shares of BankUnited in a research note on Wednesday, December 13th. Two equities research analysts have rated the stock with a sell rating, five have assigned a hold rating and seven have issued a buy rating to the company. The company has an average rating of “Hold” and a consensus target price of $43.09.
BankUnited (NYSE:BKU) last posted its earnings results on Tuesday, January 23rd. The financial services provider reported $0.86 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.62 by $0.24. BankUnited had a return on equity of 11.30% and a net margin of 45.09%. The business had revenue of $285.37 million during the quarter, compared to analyst estimates of $270.33 million. During the same quarter last year, the firm earned $0.59 earnings per share. research analysts predict that BankUnited will post 3.14 EPS for the current year.
BankUnited announced that its Board of Directors has authorized a share repurchase plan on Tuesday, January 23rd that allows the company to buyback $150.00 million in shares. This buyback authorization allows the financial services provider to reacquire shares of its stock through open market purchases. Stock buyback plans are often an indication that the company’s leadership believes its shares are undervalued.
In other BankUnited news, insider Mark Bagnoli sold 1,000 shares of the firm’s stock in a transaction that occurred on Tuesday, November 21st. The stock was sold at an average price of $35.88, for a total transaction of $35,880.00. Following the completion of the sale, the insider now owns 19,699 shares in the company, valued at approximately $706,800.12. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director Douglas J. Pauls sold 40,000 shares of the firm’s stock in a transaction that occurred on Thursday, January 25th. The shares were sold at an average price of $42.12, for a total value of $1,684,800.00. Following the sale, the director now owns 31,380 shares of the company’s stock, valued at approximately $1,321,725.60. The disclosure for this sale can be found here. 2.90% of the stock is owned by company insiders.
A number of hedge funds and other institutional investors have recently modified their holdings of BKU. GSA Capital Partners LLP bought a new position in BankUnited during the 2nd quarter worth approximately $310,000. Northern Trust Corp lifted its holdings in BankUnited by 1.5% during the 2nd quarter. Northern Trust Corp now owns 481,813 shares of the financial services provider’s stock worth $16,243,000 after buying an additional 7,337 shares during the last quarter. Parametric Portfolio Associates LLC lifted its holdings in BankUnited by 22.3% during the 2nd quarter. Parametric Portfolio Associates LLC now owns 155,716 shares of the financial services provider’s stock worth $5,249,000 after buying an additional 28,341 shares during the last quarter. Dimensional Fund Advisors LP lifted its holdings in BankUnited by 7.3% during the 2nd quarter. Dimensional Fund Advisors LP now owns 1,197,794 shares of the financial services provider’s stock worth $40,379,000 after buying an additional 81,961 shares during the last quarter. Finally, QS Investors LLC lifted its holdings in BankUnited by 9.6% during the 2nd quarter. QS Investors LLC now owns 6,280 shares of the financial services provider’s stock worth $212,000 after buying an additional 550 shares during the last quarter. Hedge funds and other institutional investors own 96.43% of the company’s stock.
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BankUnited Company Profile
BankUnited, Inc is the bank holding company of BankUnited (the Bank). The bank is a national banking association. As of December 31, 2016, the Bank provided a range of banking services to individual and corporate customers through 94 banking centers located in 15 Florida counties and six banking centers in the New York metropolitan area.
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