BankUnited, Inc. (BKU) Cut to “Sell” at Zacks Investment Research
Zacks Investment Research cut shares of BankUnited, Inc. (NYSE:BKU) from a hold rating to a sell rating in a research note published on Tuesday morning.
According to Zacks, “Shares of BankUnited have underperformed the industry in the past six months. Yet, the company boosts of an impressive earnings surprise history. It surpassed the Zacks Consensus Estimate for earnings in three of the trailing four quarters. The company is well positioned to grow organically and through acquisitions, given its strong balance sheet position and a gradual change in deposit mix. However, persistently increasing expenses is likely to hurt bottom line growth. The company also faces continued margin pressure (despite increase in interest rates), owing to its liability sensitive balance sheet. Further, exposure to risky loans is likely to weigh on its profitability.”
A number of other brokerages have also issued reports on BKU. ValuEngine raised BankUnited from a hold rating to a buy rating in a research report on Monday. BidaskClub upgraded BankUnited from a strong sell rating to a sell rating in a research note on Tuesday, June 13th. Keefe, Bruyette & Woods reiterated a buy rating and issued a $41.00 price target on shares of BankUnited in a research note on Thursday, September 28th. BMO Capital Markets reiterated a hold rating and issued a $40.00 price target on shares of BankUnited in a research note on Friday, July 7th. Finally, Morgan Stanley reiterated an overweight rating and issued a $39.00 price target (down from $40.00) on shares of BankUnited in a research note on Thursday, July 6th. Two research analysts have rated the stock with a sell rating, three have issued a hold rating and nine have assigned a buy rating to the company’s stock. BankUnited has an average rating of Buy and a consensus target price of $40.82.
BankUnited (NYSE BKU) traded up 0.28% on Tuesday, hitting $35.37. The stock had a trading volume of 200,947 shares. BankUnited has a one year low of $28.13 and a one year high of $41.00. The stock has a market cap of $3.78 billion, a P/E ratio of 15.83 and a beta of 1.10. The company’s 50-day moving average is $33.55 and its 200-day moving average is $34.27.
BankUnited (NYSE:BKU) last announced its earnings results on Wednesday, July 26th. The financial services provider reported $0.60 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.56 by $0.04. BankUnited had a return on equity of 9.81% and a net margin of 19.54%. The business had revenue of $269.48 million for the quarter, compared to analyst estimates of $258.47 million. During the same period in the previous year, the company earned $0.52 earnings per share. On average, analysts anticipate that BankUnited will post $2.37 earnings per share for the current fiscal year.
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The business also recently announced a quarterly dividend, which will be paid on Tuesday, October 31st. Shareholders of record on Monday, October 16th will be paid a $0.21 dividend. The ex-dividend date is Friday, October 13th. This represents a $0.84 dividend on an annualized basis and a yield of 2.38%. BankUnited’s payout ratio is currently 37.67%.
In other BankUnited news, Chairman John Adam Kanas sold 100,400 shares of BankUnited stock in a transaction that occurred on Monday, July 24th. The stock was sold at an average price of $33.05, for a total value of $3,318,220.00. Following the completion of the transaction, the chairman now directly owns 742,866 shares in the company, valued at $24,551,721.30. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Jeffrey Starr sold 7,445 shares of BankUnited stock in a transaction that occurred on Friday, August 4th. The shares were sold at an average price of $35.08, for a total value of $261,170.60. Following the completion of the transaction, the insider now owns 29,000 shares of the company’s stock, valued at $1,017,320. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 386,035 shares of company stock valued at $12,843,735. 5.10% of the stock is currently owned by insiders.
Hedge funds have recently modified their holdings of the business. Public Employees Retirement Association of Colorado boosted its stake in BankUnited by 4.1% in the second quarter. Public Employees Retirement Association of Colorado now owns 3,275 shares of the financial services provider’s stock valued at $110,000 after acquiring an additional 128 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank boosted its stake in BankUnited by 8.1% in the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 3,693 shares of the financial services provider’s stock valued at $124,000 after acquiring an additional 276 shares during the period. Karp Capital Management Corp acquired a new position in BankUnited in the first quarter valued at approximately $222,000. QS Investors LLC boosted its stake in BankUnited by 9.6% in the second quarter. QS Investors LLC now owns 6,280 shares of the financial services provider’s stock valued at $212,000 after acquiring an additional 550 shares during the period. Finally, LaSalle Street Capital Management LLC acquired a new position in BankUnited in the second quarter valued at approximately $221,000. Institutional investors own 98.24% of the company’s stock.
BankUnited, Inc is the bank holding company of BankUnited (the Bank). The bank is a national banking association. As of December 31, 2016, the Bank provided a range of banking services to individual and corporate customers through 94 banking centers located in 15 Florida counties and six banking centers in the New York metropolitan area.
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