Traders Sell First Republic Bank (FRC) on Strength After Earnings Miss
Investors sold shares of First Republic Bank (NYSE:FRC) on strength during trading hours on Monday after the company announced weaker than expected quarterly earnings. $56.41 million flowed into the stock on the tick-up and $78.58 million flowed out of the stock on the tick-down, for a money net flow of $22.17 million out of the stock. Of all companies tracked, First Republic Bank had the 26th highest net out-flow for the day. First Republic Bank traded up $1.69 for the day and closed at $96.66The bank reported $1.14 earnings per share for the quarter, missing the Zacks’ consensus estimate of $1.16 by ($0.02). First Republic Bank had a return on equity of 12.06% and a net margin of 26.85%. The firm had revenue of $670.30 million for the quarter, compared to analyst estimates of $678.25 million. During the same period in the prior year, the business posted $1.00 EPS. The firm’s quarterly revenue was up 20.1% compared to the same quarter last year.
The company also recently announced a quarterly dividend, which will be paid on Thursday, November 9th. Stockholders of record on Thursday, October 26th will be issued a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a dividend yield of 0.70%. The ex-dividend date of this dividend is Wednesday, October 25th. First Republic Bank’s dividend payout ratio is currently 16.04%.
A number of research firms have recently weighed in on FRC. Maxim Group reissued a “buy” rating and set a $110.00 target price (up previously from $105.00) on shares of First Republic Bank in a report on Friday, July 14th. Piper Jaffray Companies reissued a “hold” rating and set a $99.00 target price on shares of First Republic Bank in a report on Friday, July 14th. Barclays PLC set a $102.00 target price on First Republic Bank and gave the stock a “hold” rating in a report on Monday. BMO Capital Markets dropped their target price on First Republic Bank from $96.00 to $92.00 and set a “market perform” rating for the company in a report on Monday. Finally, Wells Fargo & Company dropped their target price on First Republic Bank from $100.00 to $95.00 and set a “market perform” rating for the company in a report on Monday. Two equities research analysts have rated the stock with a sell rating, eight have assigned a hold rating and six have given a buy rating to the stock. The stock currently has an average rating of “Hold” and a consensus target price of $103.57.
Institutional investors have recently added to or reduced their stakes in the business. Barnett & Company Inc. bought a new position in First Republic Bank in the second quarter valued at about $100,000. Whittier Trust Co. of Nevada Inc. grew its position in First Republic Bank by 100.6% in the second quarter. Whittier Trust Co. of Nevada Inc. now owns 1,071 shares of the bank’s stock valued at $107,000 after acquiring an additional 537 shares during the last quarter. Shine Investment Advisory Services Inc. bought a new position in First Republic Bank in the second quarter valued at about $128,000. Parallel Advisors LLC grew its position in First Republic Bank by 21.4% in the second quarter. Parallel Advisors LLC now owns 1,317 shares of the bank’s stock valued at $132,000 after acquiring an additional 232 shares during the last quarter. Finally, Creative Planning grew its position in First Republic Bank by 21.3% in the second quarter. Creative Planning now owns 1,407 shares of the bank’s stock valued at $141,000 after acquiring an additional 247 shares during the last quarter. Hedge funds and other institutional investors own 97.72% of the company’s stock.
The firm has a market cap of $15.25 billion, a PE ratio of 23.58 and a beta of 1.01. The stock’s 50-day moving average price is $99.63 and its 200-day moving average price is $97.34.
About First Republic Bank
First Republic Bank is a commercial bank and trust company. The Bank specializes in providing services, including private banking, private business banking, real estate lending and wealth management services, including trust and custody services, to clients in selected metropolitan areas in the United States.
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