Cullen/Frost Bankers, Inc. (NYSE:CFR) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Wednesday.

According to Zacks, “Shares of Cullen/Frost have outperformed the industry over the past year. This performance was supported by the company’s impressive earnings surprise history. It hasn’t missed the Zacks Consensus Estimate for earnings in any of the trailing four quarters. With a rising interest rate environment and improving non-interest bearing deposits, the company's net interest income and net interest margin is expected to grow. However, rising costs stemming mainly from expanding franchise are likely to deter bottom-line growth to some extent. Also, the company’s risky loan portfolio keeps us apprehensive.”

A number of other research analysts also recently commented on the stock. Morgan Stanley reissued an “equal weight” rating and set a $93.00 target price (up previously from $90.00) on shares of Cullen/Frost Bankers in a research report on Thursday, July 6th. BidaskClub downgraded shares of Cullen/Frost Bankers from a “hold” rating to a “sell” rating in a research report on Tuesday, June 27th. Barclays PLC set a $97.00 target price on shares of Cullen/Frost Bankers and gave the company a “hold” rating in a research report on Sunday, July 30th. J P Morgan Chase & Co downgraded shares of Cullen/Frost Bankers from a “neutral” rating to an “underweight” rating and cut their target price for the company from $100.00 to $88.00 in a research report on Monday, July 31st. Finally, Jefferies Group LLC reissued a “hold” rating and set a $95.00 target price on shares of Cullen/Frost Bankers in a research report on Friday, July 14th. Five investment analysts have rated the stock with a sell rating, twelve have assigned a hold rating and two have given a buy rating to the company. Cullen/Frost Bankers currently has an average rating of “Hold” and an average target price of $95.04.

Shares of Cullen/Frost Bankers (CFR) opened at 88.07 on Wednesday. The company’s 50-day moving average is $87.34 and its 200 day moving average is $91.06. Cullen/Frost Bankers has a 1-year low of $67.86 and a 1-year high of $99.20. The company has a market cap of $5.66 billion, a price-to-earnings ratio of 17.35 and a beta of 1.33.

Cullen/Frost Bankers (NYSE:CFR) last posted its earnings results on Thursday, July 27th. The bank reported $1.29 EPS for the quarter, meeting analysts’ consensus estimates of $1.29. The business had revenue of $295.87 million for the quarter, compared to the consensus estimate of $316.40 million. Cullen/Frost Bankers had a net margin of 28.49% and a return on equity of 11.23%. During the same quarter last year, the firm posted $1.11 EPS. Equities analysts anticipate that Cullen/Frost Bankers will post $5.22 EPS for the current year.

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Several institutional investors have recently modified their holdings of the company. BlackRock Inc. boosted its stake in Cullen/Frost Bankers by 3,918.0% in the 1st quarter. BlackRock Inc. now owns 4,695,956 shares of the bank’s stock worth $417,800,000 after purchasing an additional 4,579,082 shares in the last quarter. Principal Financial Group Inc. boosted its stake in Cullen/Frost Bankers by 177.5% in the 2nd quarter. Principal Financial Group Inc. now owns 1,830,898 shares of the bank’s stock worth $171,940,000 after purchasing an additional 1,171,078 shares in the last quarter. Vanguard Group Inc. boosted its stake in Cullen/Frost Bankers by 16.5% in the 1st quarter. Vanguard Group Inc. now owns 5,356,366 shares of the bank’s stock worth $476,557,000 after purchasing an additional 758,710 shares in the last quarter. Crawford Investment Counsel Inc. acquired a new stake in Cullen/Frost Bankers in the 2nd quarter worth approximately $28,037,000. Finally, Neuberger Berman Group LLC boosted its stake in Cullen/Frost Bankers by 8.8% in the 1st quarter. Neuberger Berman Group LLC now owns 2,475,461 shares of the bank’s stock worth $220,242,000 after purchasing an additional 200,811 shares in the last quarter. 82.39% of the stock is currently owned by hedge funds and other institutional investors.

About Cullen/Frost Bankers

Cullen/Frost Bankers, Inc is a financial holding company and a bank holding company. The Company, through its subsidiaries, provides a range of products and services throughout Texas markets. The Company’s segments include Banking, Frost Wealth Advisors and Non-Banks. The Banking segment includes both commercial and consumer banking services, and Frost Insurance Agency.

Analyst Recommendations for Cullen/Frost Bankers (NYSE:CFR)

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