Zacks Investment Research Lowers SVB Financial Group (SIVB) to Sell
SVB Financial Group (NASDAQ:SIVB) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Tuesday.
According to Zacks, “SVB Financial’s shares have outperformed the industry so far this year. The performance was supported by the company’s impressive earnings surprise history. It surpassed the Zacks Consensus Estimate for earnings in all the trailing four quarters. The company remains well positioned to grow on the back of improving rate scenario, its efforts toward focusing on improving non-interest income, and consistent growth in loans and deposits. However, mounting expenses are likely to hurt its profitability in the near term. In fact, management projects operating expenses to increase in 2017. Also, lack of geographic diversification remains a major concern for the company. Further, a stretched valuation indicates limited upside potential for the stock.”
Other equities analysts have also issued reports about the company. ValuEngine lowered SVB Financial Group from a “buy” rating to a “hold” rating in a report on Monday. Jefferies Group LLC reiterated a “buy” rating and issued a $216.00 price target on shares of SVB Financial Group in a research report on Friday, August 11th. Maxim Group boosted their price objective on SVB Financial Group from $200.00 to $220.00 and gave the company a “buy” rating in a research note on Monday, July 31st. BidaskClub lowered SVB Financial Group from a “buy” rating to a “hold” rating in a research note on Sunday, July 30th. Finally, Stephens reissued a “buy” rating and set a $205.00 price objective on shares of SVB Financial Group in a report on Friday, July 28th. One equities research analyst has rated the stock with a sell rating, four have assigned a hold rating and eight have given a buy rating to the company. SVB Financial Group has a consensus rating of “Buy” and a consensus price target of $202.75.
Shares of SVB Financial Group (SIVB) traded down 1.26% during trading on Tuesday, reaching $185.60. The company’s stock had a trading volume of 166,845 shares. The stock has a market cap of $9.78 billion, a P/E ratio of 22.56 and a beta of 1.63. The stock has a 50-day moving average of $172.61 and a 200-day moving average of $177.98. SVB Financial Group has a 52-week low of $109.67 and a 52-week high of $198.83.
SVB Financial Group (NASDAQ:SIVB) last released its quarterly earnings data on Thursday, July 27th. The bank reported $2.32 earnings per share for the quarter, beating analysts’ consensus estimates of $2.05 by $0.27. SVB Financial Group had a net margin of 24.36% and a return on equity of 11.27%. The business had revenue of $471.70 million during the quarter, compared to analyst estimates of $451.96 million. During the same period in the previous year, the business earned $1.78 EPS. SVB Financial Group’s revenue was up 10.2% compared to the same quarter last year. Analysts predict that SVB Financial Group will post $8.99 earnings per share for the current fiscal year.
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In other news, insider Philip C. Cox sold 3,024 shares of the stock in a transaction on Tuesday, August 1st. The shares were sold at an average price of $182.80, for a total value of $552,787.20. Following the transaction, the insider now owns 2,872 shares of the company’s stock, valued at approximately $525,001.60. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, Director Eric Benhamou sold 2,000 shares of the stock in a transaction on Friday, September 1st. The stock was sold at an average price of $172.01, for a total transaction of $344,020.00. Following the completion of the transaction, the director now directly owns 6,672 shares in the company, valued at approximately $1,147,650.72. The disclosure for this sale can be found here. In the last ninety days, insiders sold 8,524 shares of company stock worth $1,534,052. Insiders own 0.73% of the company’s stock.
Hedge funds and other institutional investors have recently bought and sold shares of the company. BDO Wealth Advisors LLC purchased a new position in SVB Financial Group in the second quarter worth $109,000. Exane Derivatives bought a new position in SVB Financial Group in the second quarter valued at $119,000. Peddock Capital Advisors LLC bought a new position in SVB Financial Group in the second quarter valued at $130,000. Whittier Trust Co. of Nevada Inc. increased its stake in SVB Financial Group by 79.6% in the second quarter. Whittier Trust Co. of Nevada Inc. now owns 774 shares of the bank’s stock valued at $136,000 after acquiring an additional 343 shares during the last quarter. Finally, Global X Management Co. LLC increased its stake in SVB Financial Group by 58.6% in the second quarter. Global X Management Co. LLC now owns 782 shares of the bank’s stock valued at $137,000 after acquiring an additional 289 shares during the last quarter. 92.12% of the stock is owned by institutional investors.
SVB Financial Group Company Profile
SVB Financial Group is a financial services company, as well as a bank holding and a financial holding company. The Company’s segments include Global Commercial Bank, SVB Private Bank and SVB Capital. The Global Commercial Bank segment consists of the operations of its Commercial Bank, and of SVB Wine, SVB Analytics and its Debt Fund Investments.
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