Zacks Investment Research Lowers BankUnited, Inc. (BKU) to Sell
Zacks Investment Research cut shares of BankUnited, Inc. (NYSE:BKU) from a hold rating to a sell rating in a report released 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.”
Other analysts have also issued research reports about the stock. BidaskClub upgraded shares of BankUnited from a strong sell rating to a sell rating in a research note on Friday, June 30th. Keefe, Bruyette & Woods restated a buy rating and set a $41.00 price target on shares of BankUnited in a research report on Thursday, September 28th. ValuEngine upgraded shares of BankUnited from a hold rating to a buy rating in a research report on Monday, October 2nd. Barclays PLC restated an overweight rating and set a $41.00 price target (up previously from $38.00) on shares of BankUnited in a research report on Wednesday, July 12th. Finally, Wedbush restated a neutral rating and set a $35.00 price target on shares of BankUnited in a research report on Tuesday, June 27th. Two equities 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. BankUnited currently has an average rating of Buy and a consensus target price of $40.82.
BankUnited (NYSE:BKU) opened at 35.38 on Tuesday. The stock has a 50 day moving average of $33.62 and a 200-day moving average of $34.25. The company has a market cap of $3.78 billion, a P/E ratio of 15.83 and a beta of 1.10. BankUnited has a 12 month low of $28.13 and a 12 month high of $41.00.
BankUnited (NYSE:BKU) last posted its earnings results on Wednesday, July 26th. The financial services provider reported $0.60 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.56 by $0.04. BankUnited had a net margin of 19.54% and a return on equity of 9.81%. The firm had revenue of $269.48 million during the quarter, compared to analyst estimates of $258.47 million. During the same quarter in the prior year, the business posted $0.52 EPS. Equities research analysts expect that BankUnited will post $2.37 EPS for the current year.
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The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 31st. Shareholders of record on Monday, October 16th will be issued a dividend of $0.21 per share. This represents a $0.84 annualized dividend and a yield of 2.37%. The ex-dividend date is Friday, October 13th. BankUnited’s dividend payout ratio (DPR) is presently 37.67%.
In other BankUnited news, Chairman John Adam Kanas sold 200,000 shares of the company’s stock in a transaction dated Tuesday, July 25th. The shares were sold at an average price of $33.35, for a total transaction of $6,670,000.00. Following the sale, the chairman now directly owns 742,866 shares of the company’s stock, valued at $24,774,581.10. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, insider Jeffrey Starr sold 7,445 shares of the company’s stock in a transaction dated Friday, August 4th. The shares were sold at an average price of $35.08, for a total transaction of $261,170.60. Following the sale, the insider now directly owns 29,000 shares in the company, valued at $1,017,320. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 386,035 shares of company stock worth $12,843,735. Insiders own 5.10% of the company’s stock.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Dynamic Technology Lab Private Ltd lifted its holdings in BankUnited by 142.0% during the second quarter. Dynamic Technology Lab Private Ltd now owns 17,412 shares of the financial services provider’s stock valued at $587,000 after purchasing an additional 10,217 shares during the last quarter. Nomura Holdings Inc. lifted its holdings in BankUnited by 41.8% during the second quarter. Nomura Holdings Inc. now owns 11,386 shares of the financial services provider’s stock valued at $384,000 after purchasing an additional 3,355 shares during the last quarter. The Manufacturers Life Insurance Company lifted its holdings in BankUnited by 54.9% during the second quarter. The Manufacturers Life Insurance Company now owns 268,720 shares of the financial services provider’s stock valued at $9,058,000 after purchasing an additional 95,253 shares during the last quarter. BlueCrest Capital Management Ltd purchased a new stake in BankUnited during the second quarter valued at about $276,000. Finally, State Street Corp lifted its holdings in BankUnited by 5.4% during the second quarter. State Street Corp now owns 4,027,935 shares of the financial services provider’s stock valued at $135,782,000 after purchasing an additional 207,520 shares during the last quarter. 98.24% of the stock is currently owned by institutional investors and hedge funds.
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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