Zacks Investment Research cut shares of U.S. Bancorp (NYSE:USB) from a hold rating to a sell rating in a research report released on Tuesday morning.

According to Zacks, “Shares of U.S. Bancorp underperformed the industry year to date. However, the company boasts an impressive earnings surprise history. The company has surpassed the Zacks Consensus Estimate for earnings in three of the trailing four quarters. We believe the company’s prospects will likely get support from its solid business model, core franchise and diverse revenue streams. However, escalating expenses and litigations remain key concerns. Also, stretched valuation indicates limited upside potential. Further, the company’s capital deployment activities do not seem sustainable.”

USB has been the topic of a number of other research reports. Jefferies Group LLC restated a buy rating and issued a $59.00 target price on shares of U.S. Bancorp in a research report on Friday, August 11th. Bank of America Corporation cut U.S. Bancorp from a neutral rating to an underperform rating and dropped their price target for the company from $56.00 to $54.00 in a research note on Monday. Nomura downgraded U.S. Bancorp from a buy rating to a neutral rating and cut their price objective for the company from $57.00 to $55.00 in a report on Thursday, September 28th. BidaskClub downgraded U.S. Bancorp from a hold rating to a sell rating in a report on Tuesday, August 1st. Finally, Robert W. Baird restated a hold rating and set a $48.00 price objective on shares of U.S. Bancorp in a research report on Tuesday, September 5th. Four research analysts have rated the stock with a sell rating, twelve have issued a hold rating and four have assigned a buy rating to the stock. The company currently has an average rating of Hold and a consensus target price of $53.38.

Shares of U.S. Bancorp (USB) traded down 0.215% during trading on Tuesday, hitting $53.355. 934,434 shares of the stock were exchanged. U.S. Bancorp has a 52 week low of $42.37 and a 52 week high of $56.61. The firm has a 50 day moving average price of $52.23 and a 200 day moving average price of $51.98. The firm has a market capitalization of $89.25 billion, a P/E ratio of 16.119 and a beta of 0.87.

U.S. Bancorp (NYSE:USB) last released its earnings results on Wednesday, July 19th. The financial services provider reported $0.85 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.84 by $0.01. The firm had revenue of $5.49 billion for the quarter, compared to analysts’ expectations of $5.46 billion. U.S. Bancorp had a return on equity of 13.85% and a net margin of 25.60%. The business’s revenue for the quarter was up .7% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.82 earnings per share. Analysts forecast that U.S. Bancorp will post $3.43 EPS for the current fiscal year.

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U.S. Bancorp declared that its Board of Directors has authorized a stock repurchase plan on Wednesday, June 28th that authorizes the company to buyback $2.60 billion in outstanding shares. This buyback authorization authorizes the financial services provider to reacquire up to 3% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s management believes its shares are undervalued.

The firm also recently announced a quarterly dividend, which will be paid on Monday, October 16th. Shareholders of record on Friday, September 29th will be issued a $0.30 dividend. This is an increase from U.S. Bancorp’s previous quarterly dividend of $0.28. This represents a $1.20 dividend on an annualized basis and a yield of 2.24%. The ex-dividend date of this dividend is Thursday, September 28th. U.S. Bancorp’s payout ratio is presently 36.04%.

Several hedge funds have recently added to or reduced their stakes in the company. Janus Henderson Group PLC increased its position in U.S. Bancorp by 5,598.0% in the 2nd quarter. Janus Henderson Group PLC now owns 12,653,535 shares of the financial services provider’s stock valued at $656,975,000 after buying an additional 12,431,466 shares in the last quarter. New England Asset Management Inc. boosted its holdings in U.S. Bancorp by 52.5% in the first quarter. New England Asset Management Inc. now owns 26,571,846 shares of the financial services provider’s stock worth $1,368,451,000 after acquiring an additional 9,150,126 shares in the last quarter. Principal Financial Group Inc. boosted its holdings in U.S. Bancorp by 154.2% in the second quarter. Principal Financial Group Inc. now owns 5,836,557 shares of the financial services provider’s stock worth $303,034,000 after acquiring an additional 3,540,530 shares in the last quarter. Alecta Pensionsforsakring Omsesidigt boosted its holdings in U.S. Bancorp by 1,130.0% in the first quarter. Alecta Pensionsforsakring Omsesidigt now owns 2,460,000 shares of the financial services provider’s stock worth $126,690,000 after acquiring an additional 2,260,000 shares in the last quarter. Finally, Vanguard Group Inc. boosted its holdings in U.S. Bancorp by 1.7% in the second quarter. Vanguard Group Inc. now owns 105,568,014 shares of the financial services provider’s stock worth $5,481,092,000 after acquiring an additional 1,727,498 shares in the last quarter. 73.97% of the stock is currently owned by institutional investors.

About U.S. Bancorp

U.S. Bancorp is a multi-state financial services holding company. The Company provides a full range of financial services, including lending and depository services, cash management, capital markets, and trust and investment management services. It also engages in credit card services, merchant and automated teller machine (ATM) processing, mortgage banking, insurance, brokerage and leasing.

Analyst Recommendations for U.S. Bancorp (NYSE:USB)

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