Zacks Investment Research Downgrades Hancock Holding Co. (HBHC) to Hold
Hancock Holding Co. (NASDAQ:HBHC) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Monday.
According to Zacks, “Hancock continues to streamline its business in order to reduce costs and improve efficiency. Moreover, the company’s strategic initiatives are expected to accelerate revenue generation going forward. Also, its deposits growth will help lower the funding costs, thereby leading to a meaningful deployment of capital generated from these deposits. However, persistent margin compression is a matter of concern, unless there is a significant change in the prevailing interest rate environment and loan growth. Also, stringent regulations and the impact of exposure to energy sector loans continue to affect the company’s financials in the near-term.”
HBHC has been the topic of several other research reports. Piper Jaffray Cos. restated a “neutral” rating and issued a $29.00 price target (up previously from $27.50) on shares of Hancock Holding in a report on Sunday, July 24th. Bank of America Corp. upgraded shares of Hancock Holding from an “underperform” rating to a “neutral” rating in a report on Friday, July 22nd. SunTrust Banks Inc. lowered shares of Hancock Holding from a “buy” rating to a “neutral” rating and set a $34.00 price target on the stock. in a report on Monday, September 19th. Jefferies Group restated a “hold” rating and issued a $28.00 price target on shares of Hancock Holding in a report on Thursday, July 7th. Finally, Hovde Group raised their price target on shares of Hancock Holding from $27.00 to $32.00 and gave the company a “market perform” rating in a report on Tuesday, July 26th. Nine analysts have rated the stock with a hold rating and two have given a buy rating to the stock. Hancock Holding currently has a consensus rating of “Hold” and a consensus target price of $29.57.
Shares of Hancock Holding (NASDAQ:HBHC) opened at 31.54 on Monday. The stock has a market cap of $2.45 billion, a P/E ratio of 23.40 and a beta of 0.95. Hancock Holding has a 12 month low of $20.01 and a 12 month high of $32.94. The stock’s 50 day moving average is $31.67 and its 200 day moving average is $27.37.
Hancock Holding (NASDAQ:HBHC) last announced its quarterly earnings data on Wednesday, July 20th. The financial services provider reported $0.59 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.45 by $0.14. The business had revenue of $229 million for the quarter, compared to analyst estimates of $229.18 million. Hancock Holding had a net margin of 11.20% and a return on equity of 4.53%. The company’s revenue was up 7.7% on a year-over-year basis. During the same period in the prior year, the firm posted $0.51 EPS. Analysts predict that Hancock Holding will post $1.81 earnings per share for the current fiscal year.
The business also recently declared a quarterly dividend, which was paid on Thursday, September 15th. Stockholders of record on Tuesday, September 6th were given a dividend of $0.24 per share. This represents a $0.96 dividend on an annualized basis and a dividend yield of 3.04%. The ex-dividend date was Thursday, September 1st. Hancock Holding’s payout ratio is currently 71.11%.
In other news, EVP Stephen E. Barker sold 2,550 shares of the firm’s stock in a transaction that occurred on Thursday, July 28th. The shares were sold at an average price of $29.45, for a total transaction of $75,097.50. Following the completion of the sale, the executive vice president now owns 9,966 shares of the company’s stock, valued at $293,498.70. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider George A. Schloegel purchased 4,633 shares of the firm’s stock in a transaction dated Thursday, August 4th. The shares were bought at an average cost of $28.64 per share, with a total value of $132,689.12. Following the transaction, the insider now directly owns 257,351 shares of the company’s stock, valued at approximately $7,370,532.64. The disclosure for this purchase can be found here. Insiders own 1.45% of the company’s stock.
Several hedge funds have recently added to or reduced their stakes in HBHC. BlackRock Institutional Trust Company N.A. increased its stake in Hancock Holding by 1.6% in the first quarter. BlackRock Institutional Trust Company N.A. now owns 2,285,736 shares of the financial services provider’s stock worth $52,480,000 after buying an additional 36,628 shares during the last quarter. Meeder Asset Management Inc. bought a new stake in Hancock Holding during the first quarter worth $142,000. State Street Corp increased its stake in Hancock Holding by 5.1% in the first quarter. State Street Corp now owns 4,302,929 shares of the financial services provider’s stock worth $98,805,000 after buying an additional 208,608 shares during the last quarter. Wellington Management Group LLP increased its stake in Hancock Holding by 12.0% in the first quarter. Wellington Management Group LLP now owns 2,368,154 shares of the financial services provider’s stock worth $54,372,000 after buying an additional 253,151 shares during the last quarter. Finally, Emerald Acquisition Ltd. bought a new stake in Hancock Holding during the second quarter worth $18,529,000. 81.16% of the stock is owned by institutional investors and hedge funds.
About Hancock Holding
Hancock Holding Company (Hancock) is a financial services company that provides a network of service financial choices to the Gulf South region through its bank subsidiary, Whitney Bank, a Mississippi state bank. The Company operates through overall banking operations segment. Whitney Bank operates under brands, such as Hancock Bank in Mississippi, Alabama and Florida and Whitney Bank in Louisiana and Texas.
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