Cullen/Frost Bankers Inc. (CFR) Lowered to “Hold” at Zacks Investment Research
According to Zacks, “Cullen/Frost’s estimates have been stable lately ahead of the company’s third-quarter 2016 earnings release. The company has positive record of earnings surprises in recent quarters. Cullen/Frost’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, will likely have a positive impact on net interest income and net interest margin. Notably, management expects 2016 EPS to exceed market expectations of $4.39. However, rising costs stemming largely from expanding franchise are likely to deter bottom-line growth. 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 near-term headwinds, along with stringent regulatory requirements.”
Other research analysts have also recently issued reports about the company. Compass Point began coverage on Cullen/Frost Bankers in a research report on Tuesday, June 7th. They issued a neutral rating and a $65.00 target price for the company. Royal Bank Of Canada raised their target price on Cullen/Frost Bankers from $63.00 to $70.00 and gave the stock a sector perform rating in a research report on Thursday, July 28th. Barclays PLC raised their target price on Cullen/Frost Bankers from $70.00 to $72.00 and gave the stock an underweight rating in a research report on Thursday, July 28th. Maxim Group raised their target price on Cullen/Frost Bankers from $70.00 to $85.00 and gave the stock a buy rating in a research report on Thursday, July 28th. Finally, RBC Capital Markets reaffirmed a sector perform rating and issued a $70.00 target price (up from $63.00) on shares of Cullen/Frost Bankers in a research report on Thursday, July 28th. Four research analysts have rated the stock with a sell rating, seven have given a hold rating and four have issued a buy rating to the stock. Cullen/Frost Bankers has a consensus rating of Hold and a consensus price target of $67.24.
Shares of Cullen/Frost Bankers (NYSE:CFR) traded up 3.18% during trading on Tuesday, reaching $74.03. 126,448 shares of the company were exchanged. Cullen/Frost Bankers has a 52-week low of $42.41 and a 52-week high of $74.12. The stock has a market capitalization of $4.60 billion, a P/E ratio of 17.49 and a beta of 1.11. The stock has a 50-day moving average of $70.97 and a 200 day moving average of $65.03.
Cullen/Frost Bankers (NYSE:CFR) last issued its earnings results on Wednesday, July 27th. The company reported $1.11 EPS for the quarter, topping the consensus estimate of $1.05 by $0.06. Cullen/Frost Bankers had a return on equity of 9.67% and a net margin of 24.81%. During the same period in the previous year, the company earned $1.11 earnings per share. On average, equities analysts anticipate that Cullen/Frost Bankers will post $4.56 earnings per share for the current fiscal year.
The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 15th. Investors of record on Wednesday, August 31st were given a $0.54 dividend. The ex-dividend date was Monday, August 29th. This represents a $2.16 dividend on an annualized basis and a yield of 3.01%. Cullen/Frost Bankers’s payout ratio is 50.82%.
In other news, Director Jack A. Wood sold 2,000 shares of the business’s stock in a transaction dated Thursday, September 1st. The stock was sold at an average price of $73.14, for a total transaction of $146,280.00. 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 dated Tuesday, September 6th. The stock was sold at an average price of $73.15, for a total value of $746,130.00. The disclosure for this sale can be found here. 8.03% of the stock is owned by corporate insiders.
Several institutional investors have recently bought and sold shares of CFR. State Street Corp raised its position in Cullen/Frost Bankers by 23.6% in the first quarter. State Street Corp now owns 6,959,482 shares of the company’s stock valued at $383,537,000 after buying an additional 1,327,149 shares during the last quarter. Vanguard Group Inc. raised its position in Cullen/Frost Bankers by 4.8% in the second quarter. Vanguard Group Inc. now owns 4,153,968 shares of the company’s stock valued at $264,732,000 after buying an additional 188,738 shares during the last quarter. King Luther Capital Management Corp raised its position in Cullen/Frost Bankers by 1.7% in the second quarter. King Luther Capital Management Corp now owns 2,296,640 shares of the company’s stock valued at $146,365,000 after buying an additional 39,329 shares during the last quarter. BlackRock Fund Advisors raised its position in Cullen/Frost Bankers by 3.4% in the second quarter. BlackRock Fund Advisors now owns 1,925,953 shares of the company’s stock valued at $122,741,000 after buying an additional 63,851 shares during the last quarter. Finally, BlackRock Institutional Trust Company N.A. raised its position in Cullen/Frost Bankers by 0.8% in the second quarter. BlackRock Institutional Trust Company N.A. now owns 1,596,465 shares of the company’s stock valued at $101,743,000 after buying an additional 11,950 shares during the last quarter. Institutional investors 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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