Cullen/Frost Bankers Inc. (CFR) Stock Rating Upgraded by Zacks Investment Research
Cullen/Frost Bankers Inc. (NYSE:CFR) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report released on Thursday.
According to Zacks, “Cullen/Frost’s estimates have been stable lately ahead of its 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, 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.”
A number of other brokerages have also commented on CFR. Deutsche Bank AG boosted their price objective on Cullen/Frost Bankers from $66.00 to $77.00 and gave the stock a “hold” rating in a report on Tuesday. Barclays PLC decreased their price objective on Cullen/Frost Bankers from $72.00 to $69.00 and set an “underweight” rating for the company in a report on Tuesday. Wedbush began coverage on Cullen/Frost Bankers in a report on Thursday, October 6th. They set a “neutral” rating and a $68.00 price objective for the company. RBC Capital Markets reissued a “sector perform” rating and set a $70.00 price objective (up from $63.00) on shares of Cullen/Frost Bankers in a report on Thursday, July 28th. Finally, Keefe, Bruyette & Woods boosted their price objective on Cullen/Frost Bankers from $57.00 to $68.00 and gave the stock a “market perform” rating in a report on Thursday, July 28th. Four analysts have rated the stock with a sell rating, nine have assigned a hold rating and three have given a buy rating to the stock. The company currently has an average rating of “Hold” and an average target price of $67.83.
Shares of Cullen/Frost Bankers (NYSE:CFR) traded down 3.28% during trading on Thursday, hitting $70.25. The stock had a trading volume of 133,428 shares. Cullen/Frost Bankers has a 52 week low of $42.41 and a 52 week high of $74.12. The company’s 50 day moving average price is $71.30 and its 200 day moving average price is $65.58. The company has a market capitalization of $4.36 billion, a price-to-earnings ratio of 16.60 and a beta of 1.11.
Cullen/Frost Bankers (NYSE:CFR) last issued its quarterly earnings data on Wednesday, July 27th. The company reported $1.11 EPS for the quarter, topping analysts’ consensus estimates 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 quarter last year, the company posted $1.11 earnings per share. Analysts predict that Cullen/Frost Bankers will post $4.56 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which was paid on Thursday, September 15th. Shareholders of record on Wednesday, August 31st were issued a dividend of $0.54 per share. The ex-dividend date was Monday, August 29th. This represents a $2.16 dividend on an annualized basis and a yield of 2.97%. Cullen/Frost Bankers’s payout ratio is 50.82%.
In other Cullen/Frost Bankers news, insider Richard Kardys sold 25,500 shares of the business’s stock in a transaction on Thursday, July 28th. The shares were sold at an average price of $69.54, for a total transaction of $1,773,270.00. Following the sale, the insider now owns 128,078 shares of the company’s stock, valued at approximately $8,906,544.12. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Candace K. Wolfshohl sold 4,500 shares of the business’s stock in a transaction 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 directly owns 8,145 shares in the company, valued at approximately $569,172.60. The disclosure for this sale can be found here. Company insiders own 8.03% of the company’s stock.
A number of large investors have recently modified their holdings of CFR. State Street Corp boosted its stake in shares of Cullen/Frost Bankers by 23.6% in the first quarter. State Street Corp now owns 6,959,482 shares of the company’s stock worth $383,537,000 after buying an additional 1,327,149 shares during the last quarter. Lord Abbett & CO. LLC purchased a new position in Cullen/Frost Bankers during the second quarter valued at $17,809,000. Vanguard Group Inc. boosted 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. Prudential Financial Inc. boosted its position in Cullen/Frost Bankers by 243.4% in the first quarter. Prudential Financial Inc. now owns 200,838 shares of the company’s stock valued at $11,069,000 after buying an additional 142,360 shares during the last quarter. Finally, Emerald Acquisition Ltd. purchased a new position in Cullen/Frost Bankers during the second quarter valued at $8,088,000. 84.76% of the stock is currently owned by institutional investors and hedge funds.
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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