Wells Fargo & Co. Reaffirms “Buy” Rating for U.S. Bancorp (USB)
“We traveled with an expanded team of senior management in New York on Thursday, as the company was able to showcase the depth of the bench to investors. We continue to have confidence in FRC and feel it has limited risk and higher growth when compared to many other mid-cap banks. While we acknowledge the valuation is higher than the median, we believe the strength of the franchise, the demonstrated ability to manage credit risk, and the opportunity to continue to sustain higher asset growth levels supports our Outperform rating. Sustained growth continues to drive the story. Since 2010, loans have grown at an 18% CAGR, and deposits at 19%. This high level of growth compounds, driving the increases in tangible book value (TBV) over time. We believe this growth is sustainable, due to the combination of relatively low market share and high customer loyalty. 55% of new loans are from existing customers, another 27% are direct referrals, and market share in their geographies among high net worth individuals is only 4%. This leaves a relatively small hurdle of 18% of new loans from new customer growth.”,” the firm’s analyst wrote.
Several other analysts have also recently commented on USB. Nomura restated a buy rating on shares of U.S. Bancorp in a research report on Saturday, July 9th. Barclays PLC restated a buy rating on shares of U.S. Bancorp in a research report on Saturday, July 9th. Deutsche Bank AG restated a hold rating on shares of U.S. Bancorp in a research report on Sunday, June 26th. JPMorgan Chase & Co. restated a hold rating on shares of U.S. Bancorp in a research report on Monday, July 18th. Finally, Drexel Hamilton reiterated a buy rating on shares of U.S. Bancorp in a research report on Monday, July 18th. One research analyst has rated the stock with a sell rating, fourteen have given a hold rating and eleven have given a buy rating to the company. U.S. Bancorp presently has an average rating of Hold and an average target price of $45.18.
U.S. Bancorp (NYSE:USB) opened at 43.02 on Friday. The company has a 50-day moving average price of $43.19 and a 200 day moving average price of $41.82. The firm has a market capitalization of $73.63 billion, a price-to-earnings ratio of 13.49 and a beta of 0.72. U.S. Bancorp has a 1-year low of $37.07 and a 1-year high of $44.58.
U.S. Bancorp (NYSE:USB) last posted its earnings results on Friday, July 15th. The financial services provider reported $0.83 EPS for the quarter, beating the consensus estimate of $0.80 by $0.03. U.S. Bancorp had a return on equity of 14.05% and a net margin of 26.56%. The firm had revenue of $5.45 billion for the quarter. During the same quarter in the prior year, the business earned $0.80 earnings per share. The firm’s revenue was up 8.1% compared to the same quarter last year. Equities analysts anticipate that U.S. Bancorp will post $3.25 earnings per share for the current year.
The business also recently announced a quarterly dividend, which will be paid on Monday, October 17th. Shareholders of record on Friday, September 30th will be issued a dividend of $0.28 per share. This is a positive change from U.S. Bancorp’s previous quarterly dividend of $0.26. This represents a $1.12 annualized dividend and a yield of 2.60%. The ex-dividend date of this dividend is Wednesday, September 28th. U.S. Bancorp’s dividend payout ratio (DPR) is 31.88%.
In other news, Vice Chairman Gillern Jeffry H. Von sold 102,961 shares of U.S. Bancorp stock in a transaction dated Friday, July 22nd. The stock was sold at an average price of $42.00, for a total value of $4,324,362.00. Following the transaction, the insider now directly owns 178,422 shares in the company, valued at $7,493,724. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Craig E. Gifford sold 2,500 shares of U.S. Bancorp stock in a transaction dated Thursday, July 21st. The stock was sold at an average price of $41.87, for a total value of $104,675.00. Following the completion of the transaction, the executive vice president now owns 49,881 shares in the company, valued at $2,088,517.47. The disclosure for this sale can be found here. Company insiders own 0.68% of the company’s stock.
Several institutional investors have recently bought and sold shares of USB. NN Investment Partners Holdings N.V. raised its position in U.S. Bancorp by 12.8% in the second quarter. NN Investment Partners Holdings N.V. now owns 1,440,460 shares of the financial services provider’s stock worth $58,092,000 after buying an additional 163,847 shares during the last quarter. Atlanta Capital Management Co. L L C raised its position in U.S. Bancorp by 16.3% in the first quarter. Atlanta Capital Management Co. L L C now owns 672,700 shares of the financial services provider’s stock worth $27,305,000 after buying an additional 94,316 shares during the last quarter. Legal & General Group Plc raised its position in U.S. Bancorp by 1.1% in the first quarter. Legal & General Group Plc now owns 7,907,393 shares of the financial services provider’s stock worth $320,981,000 after buying an additional 82,481 shares during the last quarter. Glenmede Trust Co. NA raised its position in U.S. Bancorp by 0.9% in the second quarter. Glenmede Trust Co. NA now owns 1,442,278 shares of the financial services provider’s stock worth $58,166,000 after buying an additional 12,222 shares during the last quarter. Finally, Mesirow Financial Investment Management Equity Management acquired a new position in U.S. Bancorp during the second quarter worth approximately $389,000. Institutional investors and hedge funds own 72.58% of the company’s stock.
About U.S. Bancorp
U.S. Bancorp is a multi-state financial services holding company. The Company’s banking subsidiary, U.S. Bank National Association, is engaged in the general banking business in domestic markets. It provides a range of financial services, including lending and depository services, cash management, capital markets, and trust and investment management services.
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