Cullen/Frost Bankers Inc. (CFR) Lifted to Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of Cullen/Frost Bankers Inc. (NYSE:CFR) from a hold rating to a buy rating in a research report released on Monday morning. The brokerage currently has $81.00 price target on the stock.
According to Zacks, “Cullen/Frost Bankers, Inc. has positive record of earnings surprises in recent quarters. Estimates have been stable ahead of the company’s third-quarter 2016 earnings release. The company’s organic growth remains on track with increasing loans and deposits balances. Further, in a rising interest rate environment, the company’s non-interest bearing deposits, which are a major low-cost funding source, are anticipated to have a positive impact on the net interest income and net interest margin. Additionally, we remain encouraged by its capital deployment measures, driven by a strong capital position. Notably, management expects 2016 EPS to exceed market expectations of $4.39. However, surging expenses are likely to restrict the bottom-line improvement. Also, significant exposure to the risky real estate loans and deteriorating credit quality, as a result of the still weak energy sector, continue to pose headwind.”
Several other brokerages have also recently issued reports on CFR. RBC Capital Markets reaffirmed a sector perform rating and issued a $70.00 price objective (up previously from $63.00) on shares of Cullen/Frost Bankers in a research note on Thursday, July 28th. Keefe, Bruyette & Woods raised their target price on shares of Cullen/Frost Bankers from $57.00 to $68.00 and gave the stock a market perform rating in a report on Thursday, July 28th. Maxim Group raised their target price on shares of Cullen/Frost Bankers from $70.00 to $85.00 and gave the stock a buy rating in a report on Thursday, July 28th. Jefferies Group raised their target price on shares of Cullen/Frost Bankers from $61.00 to $67.00 and gave the stock a hold rating in a report on Thursday, July 28th. Finally, Royal Bank Of Canada raised their target price on shares of Cullen/Frost Bankers from $63.00 to $70.00 and gave the stock a sector perform rating in a report on Thursday, July 28th. Four investment analysts have rated the stock with a sell rating, seven have assigned a hold rating and four have given a buy rating to the company’s stock. The company presently has a consensus rating of Hold and an average price target of $67.24.
Shares of Cullen/Frost Bankers (NYSE:CFR) opened at 72.85 on Monday. Cullen/Frost Bankers has a 52-week low of $42.41 and a 52-week high of $74.12. The firm has a market cap of $4.52 billion, a price-to-earnings ratio of 17.21 and a beta of 1.11. The stock has a 50 day moving average of $71.05 and a 200 day moving average of $65.09.
Cullen/Frost Bankers (NYSE:CFR) last announced its quarterly earnings data on Wednesday, July 27th. The company reported $1.11 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.05 by $0.06. Cullen/Frost Bankers had a net margin of 24.81% and a return on equity of 9.67%. During the same period in the previous year, the company posted $1.11 EPS. Equities analysts predict that Cullen/Frost Bankers will post $4.56 EPS for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 15th. Investors of record on Wednesday, August 31st were given a dividend of $0.54 per share. This represents a $2.16 annualized dividend and a yield of 2.96%. The ex-dividend date of this dividend was Monday, August 29th. Cullen/Frost Bankers’s payout ratio is presently 50.82%.
In other news, Director Jack A. Wood sold 10,000 shares of Cullen/Frost Bankers stock in a transaction that occurred on Tuesday, August 30th. The shares were sold at an average price of $72.67, for a total value of $726,700.00. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, Chairman Phillip D. Green sold 13,500 shares of Cullen/Frost Bankers stock in a transaction that occurred on Thursday, July 28th. The shares were sold at an average price of $69.42, for a total transaction of $937,170.00. Following the completion of the transaction, the chairman now directly owns 49,763 shares in the company, valued at approximately $3,454,547.46. The disclosure for this sale can be found here. Corporate insiders own 8.03% of the company’s stock.
Institutional investors have recently added to or reduced their stakes in the stock. Bessemer Group Inc. raised its position in Cullen/Frost Bankers by 5.3% in the first quarter. Bessemer Group Inc. now owns 2,033 shares of the company’s stock worth $112,000 after buying an additional 103 shares in the last quarter. Creative Planning raised its position in Cullen/Frost Bankers by 112.3% in the second quarter. Creative Planning now owns 3,132 shares of the company’s stock worth $200,000 after buying an additional 1,657 shares in the last quarter. Rench Wealth Management Inc. purchased a new position in Cullen/Frost Bankers during the second quarter worth approximately $204,000. LS Investment Advisors LLC raised its position in Cullen/Frost Bankers by 72.2% in the second quarter. LS Investment Advisors LLC now owns 3,267 shares of the company’s stock worth $208,000 after buying an additional 1,370 shares in the last quarter. Finally, Fruth Investment Management purchased a new position in Cullen/Frost Bankers during the second quarter worth approximately $216,000. 84.81% of the stock is currently owned by institutional investors.
Cullen/Frost Bankers Company Profile
Cullen/Frost Bankers, Inc is a financial holding and bank holding company. The Company, through its subsidiaries, offers commercial and consumer banking services, as well as trust and investment management, insurance, brokerage, mutual funds, leasing, treasury management, capital markets advisory and item processing services.
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