Zacks Investment Research Lowers U.S. Bancorp (USB) to Hold
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.”
Several other research analysts also recently weighed in on USB. Oppenheimer reiterated a “hold” rating on shares of U.S. Bancorp in a research note on Thursday, October 19th. Morgan Stanley increased their price target on U.S. Bancorp from $51.00 to $55.00 and gave the stock an “underweight” rating in a research note on Thursday, October 19th. Nomura increased their price target on U.S. Bancorp from $55.00 to $57.00 and gave the stock a “neutral” rating in a research note on Monday, October 23rd. JPMorgan Chase & Co. cut their price target on U.S. Bancorp from $55.50 to $50.00 and set a “neutral” rating for the company in a research note on Wednesday, November 1st. Finally, UBS Group downgraded U.S. Bancorp from a “buy” rating to a “neutral” rating and increased their price target for the stock from $58.00 to $60.00 in a research note on Tuesday, December 12th. Four analysts have rated the stock with a sell rating, eleven have issued a hold rating and six have given a buy rating to the company. The stock currently has an average rating of “Hold” and a consensus price target of $58.13.
U.S. Bancorp (NYSE:USB) last posted its quarterly earnings results on Wednesday, January 17th. The financial services provider reported $0.88 earnings per share for the quarter, topping the consensus estimate of $0.87 by $0.01. The company had revenue of $5.64 billion during the quarter, compared to the consensus estimate of $5.59 billion. U.S. Bancorp had a return on equity of 13.89% and a net margin of 25.91%. The firm’s quarterly revenue was up 3.7% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.82 EPS. research analysts forecast that U.S. Bancorp will post 4.03 earnings per share for the current fiscal year.
A number of hedge funds and other institutional investors have recently modified their holdings of the business. Douglass Winthrop Advisors LLC raised its holdings in shares of U.S. Bancorp by 63.1% in the 2nd quarter. Douglass Winthrop Advisors LLC now owns 19,000 shares of the financial services provider’s stock valued at $986,000 after acquiring an additional 7,350 shares in the last quarter. KBC Group NV raised its holdings in shares of U.S. Bancorp by 14.6% in the 2nd quarter. KBC Group NV now owns 187,519 shares of the financial services provider’s stock valued at $9,736,000 after acquiring an additional 23,844 shares in the last quarter. Opus Capital Group LLC purchased a new stake in shares of U.S. Bancorp in the 2nd quarter valued at about $202,000. Penobscot Investment Management Company Inc. raised its holdings in shares of U.S. Bancorp by 3.4% in the 2nd quarter. Penobscot Investment Management Company Inc. now owns 63,138 shares of the financial services provider’s stock valued at $3,278,000 after acquiring an additional 2,100 shares in the last quarter. Finally, First Eagle Investment Management LLC raised its holdings in shares of U.S. Bancorp by 1.0% in the 2nd quarter. First Eagle Investment Management LLC now owns 11,625,567 shares of the financial services provider’s stock valued at $603,599,000 after acquiring an additional 118,063 shares in the last quarter. Institutional investors and hedge funds own 73.87% of the company’s stock.
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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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