Zacks Investment Research upgraded shares of People’s United Financial (NASDAQ:PBCT) from a sell rating to a hold rating in a research report released on Monday, Zacks.com reports. Zacks Investment Research currently has $17.00 price target on the bank’s stock.
According to Zacks, “Shares of People’s United underperformed the industry in the past six months. However, the company has a decent earnings surprise history, having surpassed the Zacks Consensus Estimate in two and matched in two of the trailing four quarters. Third-quarter results reflect higher loans and lower provisions, partially offset by rise in expenses. People’s United is growing through acquisitions, which is likely to continue in the near term, given its strong balance-sheet position and favorable consolidation backdrop in the banking sector. Also, involvement in steady capital deployment activities continue to enhance shareholders' confidence. However, significant exposure to commercial loans keeps us apprehensive. Also, the company's expense base continues to escalate, which is expected to limit bottom-line expansion to some extent.”
A number of other analysts also recently issued reports on PBCT. Morgan Stanley lowered their price objective on shares of People’s United Financial from $17.50 to $17.00 and set an equal weight rating on the stock in a report on Thursday, October 3rd. DA Davidson reissued a buy rating on shares of People’s United Financial in a research note on Wednesday, September 11th. BidaskClub raised shares of People’s United Financial from a sell rating to a hold rating in a research note on Friday. Finally, Keefe, Bruyette & Woods cut shares of People’s United Financial from an outperform rating to a market perform rating and set a $16.00 target price for the company. in a research note on Thursday, September 5th. One research analyst has rated the stock with a sell rating, seven have given a hold rating and one has given a buy rating to the company’s stock. The company has an average rating of Hold and a consensus price target of $17.00.
People’s United Financial (NASDAQ:PBCT) last posted its quarterly earnings data on Thursday, October 17th. The bank reported $0.34 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.33 by $0.01. People’s United Financial had a net margin of 23.32% and a return on equity of 8.17%. The company had revenue of $462.00 million for the quarter, compared to the consensus estimate of $452.39 million. During the same period last year, the company earned $0.33 earnings per share. The firm’s revenue was up .1% compared to the same quarter last year. As a group, equities analysts anticipate that People’s United Financial will post 1.33 EPS for the current year.
People’s United Financial declared that its board has authorized a stock repurchase plan on Thursday, July 18th that permits the company to repurchase 20,000,000 shares. This repurchase authorization permits the bank to repurchase shares of its stock through open market purchases. Shares repurchase plans are usually a sign that the company’s management believes its shares are undervalued.
The company also recently announced a quarterly dividend, which will be paid on Friday, November 15th. Investors of record on Thursday, October 31st will be paid a $0.177 dividend. The ex-dividend date of this dividend is Wednesday, October 30th. This represents a $0.71 annualized dividend and a dividend yield of 4.20%. People’s United Financial’s dividend payout ratio is presently 54.20%.
In related news, CAO Jeffrey Hoyt sold 14,263 shares of the firm’s stock in a transaction on Tuesday, September 17th. The shares were sold at an average price of $16.09, for a total value of $229,491.67. Following the completion of the transaction, the chief accounting officer now directly owns 25,199 shares of the company’s stock, valued at $405,451.91. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 2.40% of the stock is currently owned by company insiders.
A number of hedge funds have recently added to or reduced their stakes in PBCT. Nordea Investment Management AB boosted its position in People’s United Financial by 11.4% during the first quarter. Nordea Investment Management AB now owns 96,687 shares of the bank’s stock worth $1,589,000 after purchasing an additional 9,883 shares during the period. FMR LLC boosted its position in People’s United Financial by 10.8% during the first quarter. FMR LLC now owns 138,970 shares of the bank’s stock worth $2,285,000 after purchasing an additional 13,596 shares during the period. DNB Asset Management AS boosted its position in People’s United Financial by 5.0% during the second quarter. DNB Asset Management AS now owns 73,182 shares of the bank’s stock worth $1,228,000 after purchasing an additional 3,452 shares during the period. Crossmark Global Holdings Inc. boosted its position in People’s United Financial by 2.4% during the second quarter. Crossmark Global Holdings Inc. now owns 451,083 shares of the bank’s stock worth $7,569,000 after purchasing an additional 10,411 shares during the period. Finally, Retirement Systems of Alabama boosted its position in People’s United Financial by 4.6% during the second quarter. Retirement Systems of Alabama now owns 183,916 shares of the bank’s stock worth $3,086,000 after purchasing an additional 8,081 shares during the period. 76.83% of the stock is owned by hedge funds and other institutional investors.
People’s United Financial Company Profile
People's United Financial, Inc operates as the bank holding company for People's United Bank, National Association that provides commercial banking, retail banking, and wealth management services to individual, corporate, and municipal customers. The company operates in two segments, Commercial Banking and Retail Banking.
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