U.S. Bancorp (USB) Cut to Hold at Zacks Investment Research

U.S. Bancorp (NYSE:USB) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Monday.

According to Zacks, “Shares of U.S. Bancorp have outperformed the industry over the past six months. The company possesses an impressive earnings surprise history, beating the Zacks Consensus Estimate in all the trailing four quarters. U.S. Bancorp's prospects will likely get support from its solid business model, core franchise, lower tax rate, rising interest rate and diverse revenue streams. Also, its organic growth remains solid and will likely benefit from the improving economic scenario. Though escalating expenses due to its ongoing investments in technology and likely increase in legal expenses remain concerns, U.S. Bancorp remains well poised to grow through acquisitions.”

Other equities analysts have also issued reports about the company. ValuEngine upgraded U.S. Bancorp from a “sell” rating to a “hold” rating in a research note on Wednesday, August 22nd. Citigroup cut U.S. Bancorp from a “buy” rating to a “neutral” rating in a report on Friday, November 2nd. Oppenheimer upgraded U.S. Bancorp from a “market perform” rating to an “outperform” rating and set a $62.00 price objective for the company in a report on Thursday, October 18th. Macquarie upgraded U.S. Bancorp from a “neutral” rating to an “outperform” rating and upped their price objective for the stock from $56.00 to $62.00 in a report on Wednesday, October 10th. Finally, Wedbush set a $58.00 price objective on U.S. Bancorp and gave the stock a “hold” rating in a report on Thursday, October 18th. Three research analysts have rated the stock with a sell rating, nine have assigned a hold rating and ten have assigned a buy rating to the company. U.S. Bancorp presently has a consensus rating of “Hold” and an average price target of $59.47.

Shares of NYSE USB traded up $0.73 during trading on Monday, reaching $54.25. 425,884 shares of the stock traded hands, compared to its average volume of 7,620,639. U.S. Bancorp has a 52-week low of $48.49 and a 52-week high of $58.50. The company has a debt-to-equity ratio of 0.91, a current ratio of 0.85 and a quick ratio of 0.84. The stock has a market capitalization of $86.49 billion, a PE ratio of 15.86, a P/E/G ratio of 1.74 and a beta of 0.91.

U.S. Bancorp (NYSE:USB) last released its quarterly earnings data on Wednesday, October 17th. The financial services provider reported $1.06 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.04 by $0.02. U.S. Bancorp had a return on equity of 15.14% and a net margin of 27.53%. The company had revenue of $5.70 billion for the quarter, compared to analyst estimates of $5.68 billion. During the same period in the previous year, the company posted $0.88 EPS. The firm’s revenue for the quarter was up 1.6% compared to the same quarter last year. As a group, equities analysts expect that U.S. Bancorp will post 4.1 EPS for the current fiscal year.

In related news, Vice Chairman Terrance R. Dolan sold 15,524 shares of the stock in a transaction dated Thursday, October 18th. The stock was sold at an average price of $52.91, for a total transaction of $821,374.84. Following the completion of the sale, the insider now directly owns 124,086 shares in the company, valued at approximately $6,565,390.26. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Vice Chairman Gillern Jeffry H. Von sold 17,508 shares of the stock in a transaction dated Wednesday, October 24th. The shares were sold at an average price of $50.81, for a total value of $889,581.48. Following the sale, the insider now owns 121,137 shares of the company’s stock, valued at $6,154,970.97. The disclosure for this sale can be found here. Insiders sold a total of 253,073 shares of company stock valued at $13,383,882 over the last quarter. Company insiders own 0.43% of the company’s stock.

A number of hedge funds have recently modified their holdings of the stock. Dodge & Cox lifted its holdings in U.S. Bancorp by 5.1% in the 3rd quarter. Dodge & Cox now owns 105,221 shares of the financial services provider’s stock worth $5,557,000 after buying an additional 5,100 shares during the period. Morgan Stanley lifted its holdings in U.S. Bancorp by 32.7% in the 3rd quarter. Morgan Stanley now owns 5,506,411 shares of the financial services provider’s stock worth $290,793,000 after buying an additional 1,358,026 shares during the period. Griffin Asset Management Inc. lifted its holdings in U.S. Bancorp by 4.1% in the 3rd quarter. Griffin Asset Management Inc. now owns 70,570 shares of the financial services provider’s stock worth $3,727,000 after buying an additional 2,764 shares during the period. B. Riley Wealth Management Inc. purchased a new stake in U.S. Bancorp in the 3rd quarter worth approximately $1,460,000. Finally, Nordea Investment Management AB lifted its holdings in U.S. Bancorp by 8.7% in the 3rd quarter. Nordea Investment Management AB now owns 382,832 shares of the financial services provider’s stock worth $20,348,000 after buying an additional 30,639 shares during the period. Institutional investors own 74.39% of the company’s stock.

U.S. Bancorp Company Profile

U.S. Bancorp, a financial services holding company, provides various financial services in the United States. The company operates through five segments: Corporate and Commercial Banking, Consumer and Business Banking, Wealth Management and Investment Services, Payment Services, and Treasury and Corporate Support.

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