Zacks Investment Research Downgrades First Republic Bank (FRC) to Hold
First Republic Bank (NYSE:FRC) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Monday.
According to Zacks, “First Republic’s growth prospects look encouraging following management’s comments in its Investor Day that reflected bullish tone. It continues to expect EPS growth including 50% loan growth from existing clients and has two product initiatives for high potential clients. Notably, the company’s third-quarter 2016 earnings beat the Zacks Consensus Estimate, driven by higher revenue and a decline in provisions, partially offset by higher non-interest expense. The bank is well positioned for growth, given its simpler business model and non-engagement in additional businesses, as compared to most large banking institutions. Further, consistent growth in loans and deposits, as well as rising fee income, will continue to support organic growth. However, margin pressure amid low rate scenario and stricter regulatory landscape remain concerns.”
Several other equities research analysts have also recently issued reports on FRC. Keefe, Bruyette & Woods reiterated a “hold” rating on shares of First Republic Bank in a research report on Sunday, July 17th. JPMorgan Chase & Co. reissued a “buy” rating on shares of First Republic Bank in a report on Sunday, July 17th. FBR & Co reissued a “hold” rating on shares of First Republic Bank in a research note on Sunday, July 17th. Barclays PLC boosted their target price on shares of First Republic Bank from $78.00 to $84.00 and gave the company an “overweight” rating in a research note on Thursday, August 11th. Finally, Deutsche Bank AG boosted their target price on shares of First Republic Bank from $83.00 to $85.00 and gave the company a “hold” rating in a research note on Tuesday, October 11th. Five investment analysts have rated the stock with a hold rating and seven have issued a buy rating to the company. First Republic Bank has an average rating of “Buy” and a consensus target price of $80.10.
First Republic Bank (NYSE:FRC) opened at 83.34 on Monday. First Republic Bank has a one year low of $56.32 and a one year high of $83.59. The stock’s 50 day moving average is $76.30 and its 200-day moving average is $72.76. The firm has a market capitalization of $12.51 billion, a PE ratio of 22.27 and a beta of 0.93.
First Republic Bank (NYSE:FRC) last released its quarterly earnings data on Thursday, October 13th. The company reported $1.00 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.99 by $0.01. The firm had revenue of $557.90 million for the quarter, compared to analysts’ expectations of $592.65 million. First Republic Bank had a net margin of 27.68% and a return on equity of 12.95%. The company’s revenue for the quarter was up 10.6% compared to the same quarter last year. During the same quarter last year, the business posted $0.79 earnings per share. On average, analysts anticipate that First Republic Bank will post $3.93 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which was paid on Thursday, November 10th. Shareholders of record on Thursday, October 27th were given a dividend of $0.16 per share. The ex-dividend date of this dividend was Tuesday, October 25th. This represents a $0.64 dividend on an annualized basis and a yield of 0.77%. First Republic Bank’s payout ratio is 17.34%.
Hedge funds have recently bought and sold shares of the company. Grandeur Peak Global Advisors LLC increased its stake in First Republic Bank by 1.2% in the third quarter. Grandeur Peak Global Advisors LLC now owns 369,125 shares of the company’s stock worth $28,463,000 after buying an additional 4,550 shares during the last quarter. Credit Suisse AG increased its stake in First Republic Bank by 28.2% in the third quarter. Credit Suisse AG now owns 609,647 shares of the company’s stock worth $47,010,000 after buying an additional 134,091 shares during the last quarter. Verition Fund Management LLC increased its stake in First Republic Bank by 129.7% in the third quarter. Verition Fund Management LLC now owns 8,330 shares of the company’s stock worth $642,000 after buying an additional 4,704 shares during the last quarter. Chartwell Investment Partners LLC increased its stake in First Republic Bank by 12.0% in the third quarter. Chartwell Investment Partners LLC now owns 86,150 shares of the company’s stock worth $6,643,000 after buying an additional 9,200 shares during the last quarter. Finally, Robecosam AG increased its stake in First Republic Bank by 334.2% in the third quarter. Robecosam AG now owns 39,077 shares of the company’s stock worth $3,004,000 after buying an additional 30,077 shares during the last quarter. Institutional investors own 98.56% of the company’s stock.
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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