Cullen/Frost Bankers Inc. (CFR) Upgraded to Buy by 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 note issued to investors on Monday morning. They currently have $81.00 target price 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.”
CFR has been the topic of a number of other research reports. Barclays PLC lifted their price target on shares of Cullen/Frost Bankers from $70.00 to $72.00 and gave the company an underweight rating in a report on Thursday, July 28th. Maxim Group lifted their price target on shares of Cullen/Frost Bankers from $70.00 to $85.00 and gave the company a buy rating in a report on Thursday, July 28th. Evercore ISI upgraded shares of Cullen/Frost Bankers from a sell rating to a hold rating and lifted their price target for the company from $52.00 to $67.00 in a report on Thursday, June 9th. Compass Point started coverage on shares of Cullen/Frost Bankers in a research note on Tuesday, June 7th. They issued a neutral rating and a $65.00 target price on the stock. Finally, Keefe, Bruyette & Woods raised their target price on shares of Cullen/Frost Bankers from $57.00 to $68.00 and gave the company a market perform rating in a research note on Thursday, July 28th. Four research analysts have rated the stock with a sell rating, six have issued a hold rating and five have issued a buy rating to the company. Cullen/Frost Bankers has an average rating of Hold and a consensus target price of $67.24.
Shares of Cullen/Frost Bankers (NYSE:CFR) traded up 0.35% during trading on Monday, hitting $71.93. 22,795 shares of the company were exchanged. Cullen/Frost Bankers has a 12 month low of $42.41 and a 12 month high of $73.99. The company’s 50-day moving average price is $70.93 and its 200 day moving average price is $64.94. The stock has a market cap of $4.47 billion, a P/E ratio of 17.00 and a beta of 1.11.
Cullen/Frost Bankers (NYSE:CFR) last announced its earnings results on Wednesday, July 27th. The company reported $1.11 earnings per share (EPS) for the quarter, topping the Zacks’ 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 quarter last year, the company earned $1.11 EPS. On average, equities analysts predict that Cullen/Frost Bankers will post $4.56 earnings per share for the current fiscal year.
The firm also recently announced a quarterly dividend, which was paid on Thursday, September 15th. Investors of record on Wednesday, August 31st were issued a $0.54 dividend. The ex-dividend date of this dividend was Monday, August 29th. This represents a $2.16 dividend on an annualized basis and a dividend yield of 3.01%. Cullen/Frost Bankers’s payout ratio is currently 50.82%.
In other news, insider Candace K. Wolfshohl sold 4,500 shares of the business’s stock in a transaction that occurred on Monday, September 12th. The shares were sold at an average price of $69.88, for a total transaction of $314,460.00. Following the sale, the insider now owns 8,145 shares in the company, valued at $569,172.60. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Jack A. Wood sold 10,200 shares of the business’s stock in a transaction that occurred on Tuesday, September 6th. The shares were sold at an average price of $73.15, for a total transaction of $746,130.00. The disclosure for this sale can be found here. 8.03% of the stock is currently owned by corporate insiders.
Large investors have recently added to or reduced their stakes in the stock. Commonwealth Equity Services Inc raised its stake in Cullen/Frost Bankers by 23.5% in the first quarter. Commonwealth Equity Services Inc now owns 17,562 shares of the company’s stock worth $968,000 after buying an additional 3,344 shares in the last quarter. Nisa Investment Advisors L.L.C. raised its stake in Cullen/Frost Bankers by 4.5% in the first quarter. Nisa Investment Advisors L.L.C. now owns 51,310 shares of the company’s stock worth $2,828,000 after buying an additional 2,200 shares in the last quarter. Prudential Financial Inc. raised its stake in Cullen/Frost Bankers by 243.4% in the first quarter. Prudential Financial Inc. now owns 200,838 shares of the company’s stock worth $11,069,000 after buying an additional 142,360 shares in the last quarter. BlackRock Inc. raised its stake in Cullen/Frost Bankers by 31.3% in the first quarter. BlackRock Inc. now owns 122,658 shares of the company’s stock worth $6,760,000 after buying an additional 29,242 shares in the last quarter. Finally, BlackRock Group LTD raised its stake in Cullen/Frost Bankers by 5.9% in the first quarter. BlackRock Group LTD now owns 62,048 shares of the company’s stock worth $3,420,000 after buying an additional 3,462 shares in the last quarter. Institutional investors and hedge funds own 84.81% of the company’s stock.
About Cullen/Frost Bankers
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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