U.S. Bancorp’s (USB) Buy Rating Reiterated at Wells Fargo & Co.
“We traveled with an expanded team of senior management in New York on Thursday, as the company was able to showcase the depth of the bench to investors. We continue to have confidence in FRC and feel it has limited risk and higher growth when compared to many other mid-cap banks. While we acknowledge the valuation is higher than the median, we believe the strength of the franchise, the demonstrated ability to manage credit risk, and the opportunity to continue to sustain higher asset growth levels supports our Outperform rating. Sustained growth continues to drive the story. Since 2010, loans have grown at an 18% CAGR, and deposits at 19%. This high level of growth compounds, driving the increases in tangible book value (TBV) over time. We believe this growth is sustainable, due to the combination of relatively low market share and high customer loyalty. 55% of new loans are from existing customers, another 27% are direct referrals, and market share in their geographies among high net worth individuals is only 4%. This leaves a relatively small hurdle of 18% of new loans from new customer growth.”,” Wells Fargo & Co.’s analyst commented.
A number of other equities analysts have also recently commented on USB. Nomura reiterated a buy rating on shares of U.S. Bancorp in a report on Saturday, July 9th. Barclays PLC reiterated a buy rating on shares of U.S. Bancorp in a report on Saturday, July 9th. Deutsche Bank AG reiterated a hold rating on shares of U.S. Bancorp in a report on Sunday, June 26th. JPMorgan Chase & Co. reiterated a hold rating on shares of U.S. Bancorp in a report on Monday, July 18th. Finally, Drexel Hamilton reiterated a buy rating on shares of U.S. Bancorp in a report on Monday, July 18th. One research analyst has rated the stock with a sell rating, fourteen have issued a hold rating and eleven have assigned a buy rating to the stock. U.S. Bancorp presently has a consensus rating of Hold and an average price target of $45.18.
U.S. Bancorp (NYSE:USB) opened at 43.26 on Friday. The firm has a 50-day moving average price of $43.24 and a 200 day moving average price of $41.83. U.S. Bancorp has a 12-month low of $37.07 and a 12-month high of $44.58. The firm has a market cap of $74.04 billion, a PE ratio of 13.56 and a beta of 0.72.
U.S. Bancorp (NYSE:USB) last released its earnings results on Friday, July 15th. The financial services provider reported $0.83 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.80 by $0.03. The business had revenue of $5.45 billion for the quarter. U.S. Bancorp had a return on equity of 14.05% and a net margin of 26.56%. U.S. Bancorp’s revenue was up 8.1% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.80 EPS. Equities research analysts forecast that U.S. Bancorp will post $3.25 EPS for the current year.
The business also recently disclosed a quarterly dividend, which will be paid on Monday, October 17th. Investors of record on Friday, September 30th will be issued a $0.28 dividend. This represents a $1.12 dividend on an annualized basis and a yield of 2.59%. This is an increase from U.S. Bancorp’s previous quarterly dividend of $0.26. The ex-dividend date of this dividend is Wednesday, September 28th. U.S. Bancorp’s dividend payout ratio is presently 31.88%.
In related news, EVP Craig E. Gifford sold 2,500 shares of the stock in a transaction on Thursday, July 21st. The stock was sold at an average price of $41.87, for a total value of $104,675.00. Following the completion of the sale, the executive vice president now directly owns 49,881 shares in the company, valued at $2,088,517.47. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Vice Chairman Gillern Jeffry H. Von sold 102,961 shares of the stock in a transaction on Friday, July 22nd. The shares were sold at an average price of $42.00, for a total value of $4,324,362.00. Following the completion of the sale, the insider now owns 178,422 shares of the company’s stock, valued at $7,493,724. The disclosure for this sale can be found here. 0.68% of the stock is owned by corporate insiders.
A number of hedge funds have recently bought and sold shares of USB. Chicago Partners Investment Group LLC increased its stake in U.S. Bancorp by 13.3% in the second quarter. Chicago Partners Investment Group LLC now owns 2,606 shares of the financial services provider’s stock worth $105,000 after buying an additional 306 shares during the last quarter. Harel Insurance Investments & Financial Services Ltd. bought a new stake in U.S. Bancorp during the second quarter worth $106,000. First Personal Financial Services increased its stake in U.S. Bancorp by 40.7% in the second quarter. First Personal Financial Services now owns 2,784 shares of the financial services provider’s stock worth $112,000 after buying an additional 806 shares during the last quarter. Bellwether Investment Group LLC bought a new stake in U.S. Bancorp during the second quarter worth $116,000. Finally, Hudock Capital Group LLC increased its stake in U.S. Bancorp by 0.5% in the second quarter. Hudock Capital Group LLC now owns 3,734 shares of the financial services provider’s stock worth $150,000 after buying an additional 19 shares during the last quarter. Institutional investors and hedge funds own 72.58% of the company’s stock.
U.S. Bancorp Company Profile
U.S. Bancorp is a multi-state financial services holding company. The Company’s banking subsidiary, U.S. Bank National Association, is engaged in the general banking business in domestic markets. It provides a range of financial services, including lending and depository services, cash management, capital markets, and trust and investment management services.
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