SVB Financial Group (SIVB) Upgraded to Buy by Zacks Investment Research
SVB Financial Group (NASDAQ:SIVB) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Friday. The firm currently has a $132.00 target price on the stock. Zacks Investment Research’s price objective would suggest a potential upside of 12.27% from the company’s previous close.
According to Zacks, “Estimates have been rising ahead of SVB Financial’s third-quarter 2016 earnings release. Further, the company has a positive record of earnings surprises in recent quarters. Moreover, it remains well positioned to capitalize on future opportunities on the back of its sturdy capital position and continuous favorable change in deposit mix. In addition, consistent growth in loans and deposits as well as focus on improving non-interest income will likely accelerate top-line growth. Also, the company has been continuously lowering its long-term debt, which in turn will lead to lower interest expenses and an improved bottom line. However, margin compression, domestic concentration, stricter regulatory environment and higher capital requirements would considerably affect the lending as well as the investment ability of the company.”
A number of other brokerages have also recently commented on SIVB. Barclays PLC upgraded SVB Financial Group from an “overweight” rating to a “top pick” rating and increased their price target for the company from $139.00 to $150.00 in a research note on Wednesday, September 28th. JMP Securities began coverage on SVB Financial Group in a research note on Friday, September 16th. They issued an “outperform” rating and a $130.00 price target for the company. DA Davidson cut SVB Financial Group from a “buy” rating to a “neutral” rating in a research note on Friday, July 22nd. Wells Fargo & Co. reiterated a “buy” rating on shares of SVB Financial Group in a research note on Friday, July 22nd. Finally, Maxim Group decreased their price objective on SVB Financial Group from $170.00 to $150.00 and set a “buy” rating for the company in a report on Monday, July 25th. Two analysts have rated the stock with a hold rating, twelve have given a buy rating and two have assigned a strong buy rating to the company. The company presently has an average rating of “Buy” and an average target price of $134.31.
SVB Financial Group (NASDAQ:SIVB) opened at 117.57 on Friday. SVB Financial Group has a 12-month low of $77.87 and a 12-month high of $141.75. The firm’s 50-day moving average price is $108.67 and its 200 day moving average price is $103.39. The company has a market capitalization of $6.12 billion, a price-to-earnings ratio of 17.95 and a beta of 1.63.
SVB Financial Group (NASDAQ:SIVB) last announced its quarterly earnings results on Thursday, July 21st. The company reported $1.78 EPS for the quarter, beating the Zacks’ consensus estimate of $1.70 by $0.08. SVB Financial Group had a return on equity of 9.90% and a net margin of 22.00%. On average, analysts expect that SVB Financial Group will post $6.81 earnings per share for the current year.
In other news, insider Bruce Wallace sold 2,300 shares of the firm’s stock in a transaction dated Tuesday, July 26th. The stock was sold at an average price of $103.25, for a total value of $237,475.00. Following the completion of the sale, the insider now directly owns 13,177 shares in the company, valued at approximately $1,360,525.25. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, CFO Michael Descheneaux sold 8,378 shares of the firm’s stock in a transaction dated Tuesday, July 26th. The shares were sold at an average price of $103.21, for a total value of $864,693.38. Following the completion of the sale, the chief financial officer now owns 15,079 shares of the company’s stock, valued at $1,556,303.59. The disclosure for this sale can be found here. 0.78% of the stock is owned by insiders.
Hedge funds have recently modified their holdings of the stock. Commonwealth Equity Services Inc boosted its position in shares of SVB Financial Group by 0.5% in the first quarter. Commonwealth Equity Services Inc now owns 2,836 shares of the company’s stock valued at $289,000 after buying an additional 14 shares during the last quarter. Aperio Group LLC boosted its position in shares of SVB Financial Group by 82.2% in the first quarter. Aperio Group LLC now owns 11,545 shares of the company’s stock valued at $1,178,000 after buying an additional 5,210 shares during the last quarter. Virginia Retirement System acquired a new position in shares of SVB Financial Group during the first quarter valued at $735,000. Ngam Advisors L.P. acquired a new position in shares of SVB Financial Group during the first quarter valued at $2,980,000. Finally, Algert Global LLC acquired a new position in shares of SVB Financial Group during the first quarter valued at $342,000. Institutional investors own 92.23% of the company’s stock.
About SVB Financial Group
SVB Financial Group (SVB Financial) is a diversified financial services, bank holding and financial holding company. The Company operates through three segments: Global Commercial Bank, SVB Private Bank and SVB Capital. The Global Commercial Bank segment consists of the operations of its Commercial Bank, and of SVB Wine, SVB Analytics and its Debt Fund Investments.
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