Zacks Investment Research Downgrades Zions Bancorp (ZION) to Hold
Zions Bancorp (NASDAQ:ZION) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Friday.
According to Zacks, “Zions' third-quarter 2016 earnings surpassed the Zacks Consensus Estimate on higher revenues. However, rise in expenses and provisions acted as headwinds. The company’s consistent growth in loans and deposits indicates the potential for further improvement in revenues in the quarters ahead. Also, it remains on track to exceed its cost savings target of $120 million in 2017. However, margin pressure is expected to continue unless there is significant improvement in rate environment. Also, concentration risk and regulatory restrictions continue to be matters of concern.”
Several other analysts also recently issued reports on the company. Sanford C. Bernstein downgraded Zions Bancorp from an “outperform” rating to a “market perform” rating and lifted their target price for the company from $37.00 to $38.00 in a research note on Wednesday, November 16th. They noted that the move was a valuation call. Morgan Stanley downgraded Zions Bancorp from an “overweight” rating to an “equal weight” rating and lifted their target price for the company from $34.00 to $38.00 in a research note on Wednesday, November 16th. They noted that the move was a valuation call. Royal Bank Of Canada lifted their target price on Zions Bancorp from $32.00 to $40.00 and gave the company an “outperform” rating in a research note on Thursday, November 10th. RBC Capital Markets reissued an “outperform” rating and set a $40.00 target price (up previously from $32.00) on shares of Zions Bancorp in a research note on Thursday, November 10th. Finally, Credit Suisse Group AG reissued a “buy” rating and set a $38.00 target price on shares of Zions Bancorp in a research note on Tuesday, November 8th. Two analysts have rated the stock with a sell rating, fourteen have issued a hold rating and nine have issued a buy rating to the company. Zions Bancorp presently has a consensus rating of “Hold” and a consensus target price of $34.70.
Shares of Zions Bancorp (NASDAQ:ZION) opened at 38.54 on Friday. The stock’s 50 day moving average price is $33.14 and its 200-day moving average price is $29.25. Zions Bancorp has a 1-year low of $19.65 and a 1-year high of $38.88. The stock has a market cap of $7.85 billion, a price-to-earnings ratio of 21.18 and a beta of 1.37.
Zions Bancorp (NASDAQ:ZION) last posted its quarterly earnings data on Monday, October 24th. The company reported $0.57 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.50 by $0.07. Zions Bancorp had a return on equity of 6.16% and a net margin of 17.81%. During the same quarter in the previous year, the company posted $0.41 EPS. On average, equities research analysts forecast that Zions Bancorp will post $1.92 earnings per share for the current year.
The business also recently declared a quarterly dividend, which will be paid on Wednesday, November 23rd. Stockholders of record on Wednesday, November 16th will be given a $0.08 dividend. This represents a $0.32 annualized dividend and a dividend yield of 0.83%. The ex-dividend date of this dividend is Monday, November 14th. Zions Bancorp’s payout ratio is 17.58%.
In other news, General Counsel Thomas E. Laursen sold 10,000 shares of the business’s stock in a transaction on Thursday, October 27th. The stock was sold at an average price of $32.26, for a total value of $322,600.00. Following the completion of the transaction, the general counsel now directly owns 29,737 shares of the company’s stock, valued at approximately $959,315.62. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Alexander Hume sold 11,571 shares of the business’s stock in a transaction on Tuesday, November 15th. The stock was sold at an average price of $38.53, for a total value of $445,830.63. Following the completion of the transaction, the insider now directly owns 8,270 shares of the company’s stock, valued at $318,643.10. The disclosure for this sale can be found here. 2.06% of the stock is owned by insiders.
Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Canada Pension Plan Investment Board raised its position in shares of Zions Bancorp by 2.0% in the first quarter. Canada Pension Plan Investment Board now owns 5,000 shares of the company’s stock valued at $121,000 after buying an additional 100 shares in the last quarter. Toronto Dominion Bank acquired a new position in shares of Zions Bancorp during the third quarter valued at about $131,000. Jacobus Wealth Management Inc. raised its position in shares of Zions Bancorp by 12.2% in the third quarter. Jacobus Wealth Management Inc. now owns 4,600 shares of the company’s stock valued at $143,000 after buying an additional 500 shares in the last quarter. Seven Eight Capital LLC raised its position in shares of Zions Bancorp by 235.4% in the first quarter. Seven Eight Capital LLC now owns 6,412 shares of the company’s stock valued at $155,000 after buying an additional 4,500 shares in the last quarter. Finally, SRB Corp acquired a new position in shares of Zions Bancorp during the third quarter valued at about $173,000. 91.36% of the stock is owned by hedge funds and other institutional investors.
About Zions Bancorp
Zions Bancorporation is a financial holding company. The Company operates through seven segments: Zions Bank, Amegy Bank, California Bank & Trust, National Bank of Arizona, Nevada State Bank, Vectra Bank Colorado and The Commerce Bank of Washington. It focuses on providing community banking services and its core business lines are small and medium-sized business and corporate banking; commercial and residential development, construction and term lending; retail banking; treasury cash management and related products and services; residential mortgage servicing and lending; trust and wealth management; limited capital markets activities, including municipal finance advisory and underwriting, and investment activities.
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