Cullen/Frost Bankers Inc. (NYSE:CFR) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Monday. The brokerage presently has a $81.00 price objective on the stock. Zacks Investment Research’s target price would indicate a potential upside of 12.89% from the stock’s current price.
According to Zacks, “Cullen/Frost Bankers, Inc. has positive record of earnings surprises in recent quarters. Estimates have been stable ahead of the company’s third-quarter 2016 earnings release. The company’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, are anticipated to have a positive impact on the net interest income and net interest margin. Additionally, we remain encouraged by its capital deployment measures, driven by a strong capital position. Notably, management expects 2016 EPS to exceed market expectations of $4.39. However, surging expenses are likely to restrict the bottom-line improvement. 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 headwind.”
Other analysts have also recently issued reports about the company. Maxim Group boosted their price target on Cullen/Frost Bankers from $70.00 to $85.00 and gave the stock a “buy” rating in a report on Thursday, July 28th. Vetr lowered Cullen/Frost Bankers from a “strong-buy” rating to a “buy” rating and set a $66.00 price objective on the stock. in a research note on Tuesday, June 28th. Evercore ISI raised Cullen/Frost Bankers from a “sell” rating to a “hold” rating and lifted their price objective for the stock from $52.00 to $67.00 in a research note on Thursday, June 9th. Jefferies Group lifted their price objective on Cullen/Frost Bankers from $61.00 to $67.00 and gave the stock a “hold” rating in a research note on Thursday, July 28th. Finally, Keefe, Bruyette & Woods lifted their price objective on Cullen/Frost Bankers from $57.00 to $68.00 and gave the stock a “market perform” rating in a research note on Thursday, July 28th. Four equities research analysts have rated the stock with a sell rating, seven have issued a hold rating and four have issued a buy rating to the stock. Cullen/Frost Bankers presently has a consensus rating of “Hold” and a consensus price target of $67.24.
Cullen/Frost Bankers (NYSE:CFR) opened at 71.75 on Monday. The stock’s 50 day moving average is $70.97 and its 200 day moving average is $65.03. Cullen/Frost Bankers has a 52 week low of $42.41 and a 52 week high of $73.99. The company has a market capitalization of $4.46 billion, a PE ratio of 16.95 and a beta of 1.11.
Cullen/Frost Bankers (NYSE:CFR) last released its quarterly earnings results on Wednesday, July 27th. The company reported $1.11 earnings per share for the quarter, topping 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 quarter in the previous year, the company earned $1.11 EPS. Analysts predict that Cullen/Frost Bankers will post $4.56 EPS for the current fiscal year.
The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 15th. Stockholders of record on Wednesday, August 31st were issued a dividend of $0.54 per share. The ex-dividend date of this dividend was Monday, August 29th. This represents a $2.16 annualized dividend and a dividend yield of 3.01%. Cullen/Frost Bankers’s dividend payout ratio is 50.82%.
In related news, insider Richard Kardys sold 25,500 shares of the company’s stock in a transaction on Thursday, July 28th. The stock was sold at an average price of $69.54, for a total transaction of $1,773,270.00. Following the completion of the sale, the insider now owns 128,078 shares in the company, valued at $8,906,544.12. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Chairman Phillip D. Green sold 13,500 shares of the company’s stock in a transaction on Thursday, July 28th. The stock was sold at an average price of $69.42, for a total value of $937,170.00. Following the sale, the chairman now owns 49,763 shares of the company’s stock, valued at approximately $3,454,547.46. The disclosure for this sale can be found here. Insiders own 8.03% of the company’s stock.
Large investors have recently made changes to their positions in the company. State Street Corp increased its stake 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 stake in shares of Cullen/Frost Bankers during the second quarter valued at about $17,809,000. Vanguard Group Inc. increased its stake 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. increased its stake 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 stake in shares of Cullen/Frost Bankers during the second quarter valued at about $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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