U.S. Bancorp (USB) Cut to “Hold” at Zacks Investment Research

U.S. Bancorp (NYSE:USB) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Tuesday.

According to Zacks, “Shares of U.S. Bancorp have underperformed the industry over the past six months. However, the company boasts an impressive earnings surprise history. It has surpassed the Zacks Consensus Estimate for earnings in three out of the trailing four quarters. The company’s fourth-quarter 2017 earnings were aided by easing margin pressure on rising rates. Elevated average loans and deposit balances reflected organic growth. U.S. Bancorp's prospects will likely get support from its solid business model, core franchise, lower tax rate and diverse revenue streams. Also, the company’s organic growth remains solid and is likely to benefit from the improving economic scenario. However, escalating expenses and litigations remain key concerns. Additionally, stretched valuation underlines limited upside potential.”

A number of other research firms have also recently issued reports on USB. Vining Sparks reaffirmed a “hold” rating and issued a $61.00 price target on shares of U.S. Bancorp in a report on Thursday, January 25th. Deutsche Bank raised U.S. Bancorp from a “hold” rating to a “buy” rating and lifted their price target for the company from $60.00 to $63.00 in a report on Thursday, January 25th. Morgan Stanley lifted their price target on U.S. Bancorp from $60.00 to $61.00 and gave the company an “underweight” rating in a report on Friday, February 2nd. JPMorgan Chase & Co. cut U.S. Bancorp from a “neutral” rating to an “underweight” rating and set a $58.50 price objective for the company. in a report on Wednesday, January 31st. Finally, Oppenheimer reissued a “hold” rating on shares of U.S. Bancorp in a report on Wednesday, January 17th. Four investment analysts have rated the stock with a sell rating, eleven have given a hold rating and six have given a buy rating to the company’s stock. The company currently has an average rating of “Hold” and an average target price of $58.13.

Shares of U.S. Bancorp (NYSE USB) traded up $0.37 during trading hours on Tuesday, hitting $54.34. 2,204,915 shares of the stock traded hands, compared to its average volume of 7,682,332. The company has a debt-to-equity ratio of 0.73, a current ratio of 0.82 and a quick ratio of 0.81. U.S. Bancorp has a 52 week low of $49.53 and a 52 week high of $58.50. The firm has a market cap of $89,560.00, a P/E ratio of 15.46, a PEG ratio of 1.78 and a beta of 0.87.

U.S. Bancorp (NYSE:USB) last released its quarterly earnings results on Wednesday, January 17th. The financial services provider reported $0.88 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.87 by $0.01. U.S. Bancorp had a return on equity of 13.89% and a net margin of 25.91%. The business had revenue of $5.64 billion during the quarter, compared to analysts’ expectations of $5.59 billion. During the same period in the previous year, the business posted $0.82 earnings per share. The firm’s revenue for the quarter was up 3.7% compared to the same quarter last year. equities research analysts predict that U.S. Bancorp will post 4.03 earnings per share for the current fiscal year.

Several hedge funds have recently made changes to their positions in USB. Meeder Asset Management Inc. acquired a new position in shares of U.S. Bancorp in the 4th quarter valued at approximately $106,000. Phocas Financial Corp. acquired a new position in shares of U.S. Bancorp in the 2nd quarter valued at approximately $109,000. James Hambro & Partners acquired a new position in shares of U.S. Bancorp in the 4th quarter valued at approximately $110,000. Horan Capital Advisors LLC. acquired a new position in shares of U.S. Bancorp in the 3rd quarter valued at approximately $112,000. Finally, Cerebellum GP LLC acquired a new position in U.S. Bancorp during the 4th quarter worth approximately $123,000. 73.87% of the stock is owned by institutional investors.

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U.S. Bancorp Company Profile

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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Analyst Recommendations for U.S. Bancorp (NYSE:USB)

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