Zacks Investment Research Downgrades Mitsubishi UFJ Financial Group (MUFG) to Sell

Zacks Investment Research lowered shares of Mitsubishi UFJ Financial Group (NYSE:MUFG) from a hold rating to a sell rating in a research note released on Wednesday.

According to Zacks, “Shares of Mitsubishi UFJ have underperformed the industry on the NYSE, year to date. Strong capital ratios and organic growth are likely to drive the company’s bottom-line growth. Also, the company’s prospects look encouraging, as it focuses on several strategies under its medium-term business plan and global expansion. Nonetheless, the company's revenues continue to remain under pressure due to the negative interest rates in Japan. Also, rising costs due to strict regulations in overseas business remains a key concern.”

Other equities research analysts also recently issued reports about the company. Daiwa Capital Markets raised Mitsubishi UFJ Financial Group from a neutral rating to an outperform rating in a research note on Monday, September 3rd. Citigroup began coverage on Mitsubishi UFJ Financial Group in a research note on Tuesday, November 13th. They issued a buy rating for the company. Two investment analysts have rated the stock with a sell rating and three have issued a buy rating to the company’s stock. The stock presently has a consensus rating of Hold and a consensus target price of $7.50.

NYSE:MUFG opened at $5.05 on Wednesday. The company has a debt-to-equity ratio of 0.82, a current ratio of 0.85 and a quick ratio of 0.86. Mitsubishi UFJ Financial Group has a 1-year low of $5.03 and a 1-year high of $8.11. The firm has a market capitalization of $66.25 billion, a P/E ratio of 6.73, a P/E/G ratio of 1.74 and a beta of 1.54.

A number of institutional investors have recently made changes to their positions in the stock. Reliance Trust Co. of Delaware purchased a new stake in shares of Mitsubishi UFJ Financial Group during the 3rd quarter worth about $103,000. Toronto Dominion Bank purchased a new stake in shares of Mitsubishi UFJ Financial Group during the 3rd quarter worth about $104,000. Envestnet Asset Management Inc. purchased a new stake in shares of Mitsubishi UFJ Financial Group during the 3rd quarter worth about $108,000. Bailard Inc. purchased a new stake in shares of Mitsubishi UFJ Financial Group during the 3rd quarter worth about $118,000. Finally, Laurel Wealth Advisors Inc. purchased a new stake in shares of Mitsubishi UFJ Financial Group during the 3rd quarter worth about $140,000. 1.07% of the stock is owned by hedge funds and other institutional investors.

About Mitsubishi UFJ Financial Group

Mitsubishi UFJ Financial Group, Inc, a bank holding company, provides financial services in Japan and internationally. Its Retail Banking Business Group segment offers a range of products and services, such as bank deposits, loans, asset management and administration services, investment products, and settlement services.

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