According to Zacks, “Cullen/Frost’s estimates have been stable lately ahead of the company’s third-quarter 2016 earnings release. The company has positive record of earnings surprises in recent quarters. Cullen/Frost’s organic growth remains on track with increasing loans and deposits balances. Further, in a rising interest rate environment, the company’s non-interest bearing deposits, which are a major low-cost funding source, will likely have a positive impact on net interest income and net interest margin. Notably, management expects 2016 EPS to exceed market expectations of $4.39. However, rising costs stemming largely from expanding franchise are likely to deter bottom-line growth. Also, significant exposure to the risky real estate loans and deteriorating credit quality as a result of the still weak energy sector, continue to pose near-term headwinds, along with stringent regulatory requirements.”
CFR has been the subject of several other research reports. JPMorgan Chase & Co. upped their price objective on Cullen/Frost Bankers from $55.00 to $58.00 and gave the company an underweight rating in a research note on Thursday, July 7th. Jefferies Group increased their target price on shares of Cullen/Frost Bankers from $61.00 to $67.00 and gave the company a hold rating in a research report on Thursday, July 28th. Vetr downgraded shares of Cullen/Frost Bankers from a strong-buy rating to a buy rating and set a $66.00 target price for the company. in a research report on Tuesday, June 28th. Evercore ISI raised shares of Cullen/Frost Bankers from a sell rating to a hold rating and increased their target price for the company from $52.00 to $67.00 in a research report on Thursday, June 9th. Finally, Keefe, Bruyette & Woods increased their target price on shares of Cullen/Frost Bankers from $57.00 to $68.00 and gave the company a market perform rating in a research report on Thursday, July 28th. Four investment analysts have rated the stock with a sell rating, eight have assigned a hold rating and four have assigned a buy rating to the company. Cullen/Frost Bankers presently has a consensus rating of Hold and an average price target of $67.28.
Cullen/Frost Bankers (NYSE:CFR) opened at 72.89 on Tuesday. The stock has a market capitalization of $4.53 billion, a PE ratio of 17.22 and a beta of 1.11. Cullen/Frost Bankers has a 52 week low of $42.41 and a 52 week high of $74.12. The stock’s 50 day moving average is $71.12 and its 200-day moving average is $65.15.
Cullen/Frost Bankers (NYSE:CFR) last released its quarterly earnings data on Wednesday, July 27th. The company reported $1.11 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.05 by $0.06. Cullen/Frost Bankers had a return on equity of 9.67% and a net margin of 24.81%. During the same period in the prior year, the company earned $1.11 earnings per share. Equities research analysts forecast that Cullen/Frost Bankers will post $4.56 EPS for the current year.
The company also recently announced a quarterly dividend, which was paid on Thursday, September 15th. Investors of record on Wednesday, August 31st were issued a $0.54 dividend. This represents a $2.16 dividend on an annualized basis and a dividend yield of 2.96%. The ex-dividend date was Monday, August 29th. Cullen/Frost Bankers’s dividend payout ratio is currently 50.82%.
In other Cullen/Frost Bankers news, insider Patrick B. Frost sold 10,500 shares of the firm’s stock in a transaction on Monday, August 1st. The stock was sold at an average price of $67.73, for a total transaction of $711,165.00. Following the transaction, the insider now directly owns 160,147 shares in the company, valued at approximately $10,846,756.31. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Richard Kardys sold 25,500 shares of the firm’s stock in a transaction on Thursday, July 28th. The shares were sold at an average price of $69.54, for a total value of $1,773,270.00. Following the transaction, the insider now owns 128,078 shares in the company, valued at $8,906,544.12. The disclosure for this sale can be found here. 8.03% of the stock is owned by corporate insiders.
A number of institutional investors have recently modified their holdings of the stock. State Street Corp boosted its position in shares of Cullen/Frost Bankers by 23.6% in the first quarter. State Street Corp now owns 6,959,482 shares of the company’s stock valued at $383,537,000 after buying an additional 1,327,149 shares during the period. Lord Abbett & CO. LLC bought a new position in shares of Cullen/Frost Bankers during the second quarter valued at $17,809,000. Vanguard Group Inc. boosted its position in shares of Cullen/Frost Bankers by 4.8% in the second quarter. Vanguard Group Inc. now owns 4,153,968 shares of the company’s stock valued at $264,732,000 after buying an additional 188,738 shares during the period. Prudential Financial Inc. boosted its position in shares of Cullen/Frost Bankers by 243.4% in the first quarter. Prudential Financial Inc. now owns 200,838 shares of the company’s stock valued at $11,069,000 after buying an additional 142,360 shares during the period. Finally, Emerald Acquisition Ltd. bought a new position in shares of Cullen/Frost Bankers during the second quarter valued at $8,088,000. Institutional investors and hedge funds own 84.81% of the company’s stock.
About Cullen/Frost Bankers
Cullen/Frost Bankers, Inc is a financial holding and bank holding company. The Company, through its subsidiaries, offers commercial and consumer banking services, as well as trust and investment management, insurance, brokerage, mutual funds, leasing, treasury management, capital markets advisory and item processing services.
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