U.S. Bancorp (USB) Downgraded by Zacks Investment Research

Zacks Investment Research cut shares of U.S. Bancorp (NYSE:USB) from a hold rating to a sell rating in a research report released on Monday, Zacks.com reports.

According to Zacks, “Shares of U.S. Bancorp have underperformed the industry over the past three months. The company's earnings estimates have been revised downward ahead of the company's first-quarter 2019 results. Yet, 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. Nevertheless, escalating expenses due to its ongoing investments in technology and likely increase in legal expenses remain concerns. Moreover, legal hassels and unsustainable capital deployment activities remain headwinds.”

A number of other equities research analysts have also recently issued reports on USB. Barclays boosted their price objective on U.S. Bancorp from $61.00 to $64.00 and gave the company an overweight rating in a research note on Wednesday, January 2nd. Jefferies Financial Group cut U.S. Bancorp from a buy rating to a hold rating in a research note on Tuesday, January 8th. Robert W. Baird cut U.S. Bancorp from an outperform rating to a neutral rating and set a $51.00 price objective on the stock. in a research note on Monday, January 28th. Finally, Oppenheimer boosted their price objective on U.S. Bancorp from $58.00 to $62.00 and gave the company an outperform rating in a research note on Tuesday, March 26th. Three equities research analysts have rated the stock with a sell rating, nine have assigned a hold rating and four have assigned a buy rating to the company’s stock. The stock has an average rating of Hold and an average price target of $58.08.

Shares of U.S. Bancorp stock opened at $50.67 on Monday. U.S. Bancorp has a 52-week low of $43.14 and a 52-week high of $55.56. The stock has a market capitalization of $79.84 billion, a P/E ratio of 12.36, a PEG ratio of 1.65 and a beta of 1.06. The company has a current ratio of 0.85, a quick ratio of 0.85 and a debt-to-equity ratio of 0.91.

U.S. Bancorp (NYSE:USB) last announced its quarterly earnings data on Wednesday, April 17th. The financial services provider reported $1.00 earnings per share (EPS) for the quarter, meeting the Zacks’ consensus estimate of $1.00. U.S. Bancorp had a return on equity of 15.64% and a net margin of 27.53%. The business had revenue of $5.58 billion for the quarter, compared to analysts’ expectations of $5.62 billion. During the same period in the previous year, the business posted $0.96 EPS. The firm’s quarterly revenue was up 2.0% compared to the same quarter last year. As a group, sell-side analysts forecast that U.S. Bancorp will post 4.31 EPS for the current year.

The business also recently declared a quarterly dividend, which was paid on Monday, April 15th. Stockholders of record on Friday, March 29th were given a dividend of $0.37 per share. This represents a $1.48 annualized dividend and a dividend yield of 2.92%. The ex-dividend date was Thursday, March 28th. U.S. Bancorp’s dividend payout ratio is presently 36.10%.

In other news, Vice Chairman Leslie V. Godridge sold 14,737 shares of the company’s stock in a transaction dated Monday, February 4th. The stock was sold at an average price of $51.50, for a total transaction of $758,955.50. Following the sale, the insider now directly owns 61,737 shares in the company, valued at $3,179,455.50. The sale was disclosed in a document filed with the SEC, which is available at this link. Corporate insiders own 0.24% of the company’s stock.

Institutional investors and hedge funds have recently made changes to their positions in the company. WESPAC Advisors SoCal LLC purchased a new position in shares of U.S. Bancorp during the fourth quarter worth about $27,000. Executive Wealth Management LLC purchased a new position in shares of U.S. Bancorp during the fourth quarter worth about $27,000. Gantzert Investment Co. LLC ADV purchased a new position in shares of U.S. Bancorp during the fourth quarter worth about $32,000. ERTS Wealth Advisors LLC purchased a new stake in U.S. Bancorp in the fourth quarter worth approximately $36,000. Finally, WP Advisors LLC purchased a new stake in U.S. Bancorp in the first quarter worth approximately $43,000. Hedge funds and other institutional investors own 75.82% 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. It operates in 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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Analyst Recommendations for U.S. Bancorp (NYSE:USB)

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