Cullen/Frost Bankers (CFR) Upgraded to “Hold” at Zacks Investment Research
According to Zacks, “Shares of Cullen/Frost have underperformed the industry, over the past three months. The first-quarter 2019 results indicated top-line strength, elevated expenses and provisions. The company’s significant exposure to real estate in its loan portfolio remains a concern. Further, rising costs, mainly resulting from expanding franchise, are likely to deter bottom-line growth. Also, continued deterioration in credit quality will likely escalate borrowing costs for the company. However, the company possesses an impressive earnings surprise history, beating the Zacks Consensus Estimate in all the trailing four quarters. With a rising interest-rate environment and improving non-interest bearing deposits, the company's net interest income and net interest margin are likely to grow.”
Other equities research analysts have also issued research reports about the company. Maxim Group reiterated a “buy” rating and issued a $110.00 target price (down previously from $115.00) on shares of Cullen/Frost Bankers in a research report on Friday, April 26th. Wedbush upped their price objective on Cullen/Frost Bankers from $94.00 to $95.00 and gave the stock a “neutral” rating in a research report on Friday, April 26th. Finally, Stephens set a $100.00 price objective on Cullen/Frost Bankers and gave the stock a “hold” rating in a research report on Friday, April 26th. Two analysts have rated the stock with a sell rating, six have assigned a hold rating and two have assigned a buy rating to the company. The stock presently has a consensus rating of “Hold” and a consensus target price of $102.89.
Cullen/Frost Bankers (NYSE:CFR) last released its quarterly earnings data on Thursday, April 25th. The bank reported $1.79 earnings per share for the quarter, beating the consensus estimate of $1.75 by $0.04. Cullen/Frost Bankers had a return on equity of 14.30% and a net margin of 32.16%. The firm had revenue of $367.96 million during the quarter, compared to the consensus estimate of $366.47 million. During the same period in the previous year, the company posted $1.61 earnings per share. The firm’s quarterly revenue was up 7.0% on a year-over-year basis. Analysts predict that Cullen/Frost Bankers will post 7.01 earnings per share for the current year.
In related news, Chairman Phillip D. Green sold 14,210 shares of the stock in a transaction on Tuesday, April 30th. The stock was sold at an average price of $101.91, for a total value of $1,448,141.10. Following the completion of the transaction, the chairman now directly owns 34,337 shares of the company’s stock, valued at approximately $3,499,283.67. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Jerry Salinas sold 12,000 shares of the stock in a transaction on Tuesday, May 7th. The shares were sold at an average price of $100.98, for a total value of $1,211,760.00. Following the completion of the transaction, the chief financial officer now directly owns 24,856 shares of the company’s stock, valued at $2,509,958.88. The disclosure for this sale can be found here. Corporate insiders own 4.84% of the company’s stock.
A number of hedge funds and other institutional investors have recently bought and sold shares of CFR. Vanguard Group Inc raised its position in Cullen/Frost Bankers by 3.0% in the third quarter. Vanguard Group Inc now owns 5,964,830 shares of the bank’s stock worth $622,968,000 after acquiring an additional 171,180 shares during the period. BlackRock Inc. grew its stake in Cullen/Frost Bankers by 6.1% in the 4th quarter. BlackRock Inc. now owns 5,886,456 shares of the bank’s stock worth $517,655,000 after buying an additional 340,001 shares in the last quarter. JPMorgan Chase & Co. grew its stake in Cullen/Frost Bankers by 27.8% in the 1st quarter. JPMorgan Chase & Co. now owns 2,757,310 shares of the bank’s stock worth $267,652,000 after buying an additional 600,509 shares in the last quarter. Aristotle Capital Management LLC grew its stake in Cullen/Frost Bankers by 2.2% in the 1st quarter. Aristotle Capital Management LLC now owns 2,402,139 shares of the bank’s stock worth $233,176,000 after buying an additional 51,357 shares in the last quarter. Finally, FMR LLC grew its stake in Cullen/Frost Bankers by 0.9% in the 4th quarter. FMR LLC now owns 2,280,587 shares of the bank’s stock worth $200,554,000 after buying an additional 20,968 shares in the last quarter. 82.26% of the stock is owned by hedge funds and other institutional investors.
About Cullen/Frost Bankers
Cullen/Frost Bankers, Inc operates as the holding company for Frost Bank that offers commercial and consumer banking services in Texas. It operates in two segments, Banking and Frost Wealth Advisors. The company offers commercial banking services to corporations and other business clients, including financing for industrial and commercial properties, interim construction related to industrial and commercial properties, equipment, inventories and accounts receivables, and acquisitions; commercial leasing; and treasury management services.
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