SVB Financial Group (NASDAQ:SIVB) Lowered to Hold at Zacks Investment Research

SVB Financial Group (NASDAQ:SIVB) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Friday, Zacks.com reports. They currently have a $219.00 price objective on the bank’s stock. Zacks Investment Research‘s target price would suggest a potential upside of 5.12% from the company’s previous close.

According to Zacks, “Shares of SVB Financial have outperformed the industry over the past year. It surpassed the Zacks Consensus Estimate for earnings in three of the trailing four quarters. Continuously increasing operating expenses due to a rise in compensation costs will likely hurt the company's bottom line to some extent in the near term. Moreover, lower interest rates and the Fed's accommodative monetary policy stance are likely to put pressure on margins, in turn hurting the top line growth. Further, uncertainties related to the coronavirus outbreak make us apprehensive. However, a strong balance sheet position is likely to bode well for the company. Also, growth in loans and deposit balances, global expansion strategy and the SVB Leerink buyout are expected to be beneficial. Additionally, its efforts to improve non-interest income are impressive.”

A number of other analysts also recently issued reports on SIVB. Bank of America lifted their target price on SVB Financial Group from $185.00 to $200.00 and gave the company a “buy” rating in a research report on Friday, April 24th. Wells Fargo & Co lifted their price target on SVB Financial Group from $125.00 to $140.00 and gave the stock an “underweight” rating in a report on Friday, April 24th. JMP Securities reduced their price target on SVB Financial Group from $275.00 to $200.00 and set a “market outperform” rating for the company in a report on Tuesday, May 5th. SunTrust Banks lifted their price target on SVB Financial Group from $210.00 to $220.00 and gave the stock a “buy” rating in a report on Tuesday, May 5th. Finally, Maxim Group reiterated a “buy” rating and set a $240.00 price target on shares of SVB Financial Group in a report on Friday, May 29th. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating and twelve have given a buy rating to the stock. SVB Financial Group has a consensus rating of “Buy” and an average price target of $233.72.

Shares of SIVB stock traded up $2.06 during trading on Friday, hitting $208.34. The company had a trading volume of 294,491 shares, compared to its average volume of 430,962. The firm has a market capitalization of $10.73 billion, a P/E ratio of 11.06, a price-to-earnings-growth ratio of 2.06 and a beta of 2.25. The stock’s 50-day moving average price is $206.40 and its 200 day moving average price is $211.71. The company has a debt-to-equity ratio of 0.05, a quick ratio of 0.72 and a current ratio of 0.72. SVB Financial Group has a one year low of $127.39 and a one year high of $270.95.

SVB Financial Group (NASDAQ:SIVB) last announced its quarterly earnings results on Thursday, April 23rd. The bank reported $2.55 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $3.07 by ($0.52). The firm had revenue of $826.07 million during the quarter, compared to the consensus estimate of $770.92 million. SVB Financial Group had a net margin of 27.57% and a return on equity of 15.82%. During the same period in the previous year, the business earned $5.44 earnings per share. On average, research analysts anticipate that SVB Financial Group will post 12.52 earnings per share for the current fiscal year.

In other SVB Financial Group news, CFO Daniel J. Beck sold 2,205 shares of the business’s stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $240.15, for a total transaction of $529,530.75. Following the completion of the transaction, the chief financial officer now directly owns 2,312 shares in the company, valued at $555,226.80. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Christopher Edmonds-Waters sold 804 shares of the business’s stock in a transaction that occurred on Monday, June 22nd. The shares were sold at an average price of $219.05, for a total transaction of $176,116.20. Following the transaction, the insider now owns 4,804 shares of the company’s stock, valued at $1,052,316.20. The disclosure for this sale can be found here. Over the last quarter, insiders sold 9,862 shares of company stock valued at $2,032,831. 0.78% of the stock is currently owned by corporate insiders.

A number of institutional investors and hedge funds have recently made changes to their positions in SIVB. Capital Research Global Investors increased its holdings in shares of SVB Financial Group by 268.9% during the first quarter. Capital Research Global Investors now owns 1,551,128 shares of the bank’s stock worth $234,344,000 after buying an additional 1,130,650 shares in the last quarter. Norges Bank acquired a new position in SVB Financial Group during the 4th quarter worth approximately $129,600,000. Alecta Pensionsforsakring Omsesidigt increased its holdings in SVB Financial Group by 77.0% during the 1st quarter. Alecta Pensionsforsakring Omsesidigt now owns 885,000 shares of the bank’s stock worth $133,449,000 after purchasing an additional 385,000 shares during the last quarter. JPMorgan Chase & Co. increased its holdings in SVB Financial Group by 22.1% during the 1st quarter. JPMorgan Chase & Co. now owns 1,932,634 shares of the bank’s stock worth $291,983,000 after purchasing an additional 349,409 shares during the last quarter. Finally, Massachusetts Financial Services Co. MA increased its holdings in SVB Financial Group by 1,420.6% during the 1st quarter. Massachusetts Financial Services Co. MA now owns 334,102 shares of the bank’s stock worth $50,476,000 after purchasing an additional 312,131 shares during the last quarter. Institutional investors and hedge funds own 91.42% of the company’s stock.

SVB Financial Group Company Profile

SVB Financial Group, a diversified financial services company, provides various banking and financial products and services. The company operates through three segments: Global Commercial Bank, SVB Private Bank, and SVB Capital. The Global Commercial Bank segment offers deposit products, such as business and analysis checking, money market, multi-currency, in-country bank, and sweep accounts, as well as merchant, remote capture, lockbox, electronic deposit capture, and fraud control services; credit products and services comprising term loans, equipment loans, asset-based loans, revolving lines of credit, accounts-receivable-based lines of credit, capital call lines of credit, and credit cards; and payment and cash management products and services, including wire transfer and automated clearing house payment, bill pay, debit and credit cards, account analysis, and disbursement, as well as online and mobile banking services.

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