U.S. Bancorp (USB) Downgraded to “Sell” at Zacks Investment Research
According to Zacks, “Shares of U.S. Bancorp have underperformed the industry over the past three months. The company's earnings estimates have been revised downward ahead of the company's first-quarter 2019 results. Yet, the company possesses an impressive earnings surprise history, beating the Zacks Consensus Estimate in all the trailing four quarters. U.S. Bancorp's prospects will likely get support from its solid business model, core franchise, lower tax rate, rising interest rate and diverse revenue streams. Also, its organic growth remains solid and will likely benefit from the improving economic scenario. Nevertheless, escalating expenses due to its ongoing investments in technology and likely increase in legal expenses remain concerns. Moreover, legal hassels and unsustainable capital deployment activities remain headwinds.”
A number of other analysts have also recently weighed in on USB. Barclays raised their price target on shares of U.S. Bancorp from $61.00 to $64.00 and gave the company an “overweight” rating in a report on Wednesday, January 2nd. Jefferies Financial Group cut shares of U.S. Bancorp from a “buy” rating to a “hold” rating in a report on Tuesday, January 8th. Oppenheimer raised their price target on shares of U.S. Bancorp from $58.00 to $62.00 and gave the company an “outperform” rating in a report on Tuesday, March 26th. Finally, Robert W. Baird cut shares of U.S. Bancorp from an “outperform” rating to a “neutral” rating and set a $51.00 price target on the stock. in a report on Monday, January 28th. Three analysts have rated the stock with a sell rating, nine have given a hold rating and four have issued a buy rating to the company. U.S. Bancorp presently has a consensus rating of “Hold” and an average price target of $58.08.
U.S. Bancorp (NYSE:USB) last posted its earnings results on Wednesday, January 16th. The financial services provider reported $1.07 EPS for the quarter, beating analysts’ consensus estimates of $1.06 by $0.01. The business had revenue of $5.83 billion for the quarter, compared to the consensus estimate of $5.73 billion. U.S. Bancorp had a net margin of 27.53% and a return on equity of 15.64%. The company’s revenue for the quarter was up 4.1% on a year-over-year basis. During the same quarter last year, the firm posted $0.88 EPS. Sell-side analysts forecast that U.S. Bancorp will post 4.31 EPS for the current fiscal year.
In other news, Vice Chairman Leslie V. Godridge sold 14,737 shares of U.S. Bancorp stock in a transaction that occurred on Monday, February 4th. The shares were sold at an average price of $51.50, for a total transaction of $758,955.50. Following the completion of the transaction, the insider now directly owns 61,737 shares of the company’s stock, valued at approximately $3,179,455.50. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. 0.24% of the stock is owned by insiders.
A number of hedge funds and other institutional investors have recently modified their holdings of USB. FMR LLC boosted its position in shares of U.S. Bancorp by 12.9% during the 4th quarter. FMR LLC now owns 27,563,463 shares of the financial services provider’s stock valued at $1,259,651,000 after acquiring an additional 3,143,660 shares during the last quarter. Northern Trust Corp boosted its position in shares of U.S. Bancorp by 2.9% during the 4th quarter. Northern Trust Corp now owns 20,129,830 shares of the financial services provider’s stock valued at $919,933,000 after acquiring an additional 561,261 shares during the last quarter. Geode Capital Management LLC boosted its position in shares of U.S. Bancorp by 7.5% during the 4th quarter. Geode Capital Management LLC now owns 18,322,754 shares of the financial services provider’s stock valued at $835,766,000 after acquiring an additional 1,285,265 shares during the last quarter. Bank of New York Mellon Corp boosted its position in shares of U.S. Bancorp by 2.9% during the 4th quarter. Bank of New York Mellon Corp now owns 16,427,901 shares of the financial services provider’s stock valued at $750,754,000 after acquiring an additional 465,927 shares during the last quarter. Finally, Norges Bank acquired a new position in shares of U.S. Bancorp during the 4th quarter valued at about $723,318,000. 75.82% of the stock is owned by institutional investors.
About U.S. Bancorp
U.S. Bancorp, a financial services holding company, provides various financial services in the United States. It operates in five segments: Corporate and Commercial Banking, Consumer and Business Banking, Wealth Management and Investment Services, Payment Services, and Treasury and Corporate Support.
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