Cullen/Frost Bankers (NYSE:CFR) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Wednesday.
According to Zacks, “Shares of Cullen/Frost have outperformed the industry over the past three months. Further, the company possesses an impressive earnings surprise history, beating the Zacks Consensus Estimate in all the trailing four quarters. The company’s fourth-quarter results reflected top-line strength, aided by rising loans and deposits, along with lower provisions. However, high expenses and lower fee income were major drags. With a rising interest-rate environment and improving non-interest bearing deposits, the company's net interest income and net interest margin are likely to grow. The company's strong liquidity position keeps it well poised for opportunistic expansions. Nevertheless, the company’s significant exposure to real estate in its loan portfolio and rising costs, mainly resulting from expanding franchise, are likely to deter bottom-line growth.”
Several other research firms have also commented on CFR. Morgan Stanley lowered Cullen/Frost Bankers from an “equal” rating to a “weight” rating and reduced their price target for the stock from $105.00 to $103.00 in a report on Monday, November 12th. SunTrust Banks reduced their price target on Cullen/Frost Bankers from $124.00 to $105.00 and set a “buy” rating on the stock in a report on Monday, October 29th. Bank of America lowered Cullen/Frost Bankers from a “buy” rating to a “neutral” rating and set a $96.00 price target on the stock. in a report on Thursday, January 10th. Stephens set a $101.00 price target on Cullen/Frost Bankers and gave the stock a “hold” rating in a report on Monday, October 29th. Finally, Barclays reiterated a “hold” rating and set a $105.00 price target on shares of Cullen/Frost Bankers in a report on Friday, January 11th. Five equities research analysts have rated the stock with a sell rating, five have assigned a hold rating and two have issued a buy rating to the company. Cullen/Frost Bankers presently has an average rating of “Hold” and an average price target of $107.11.
CFR traded down $0.46 on Wednesday, hitting $99.34. 5,863 shares of the company’s stock were exchanged, compared to its average volume of 325,046. Cullen/Frost Bankers has a fifty-two week low of $81.87 and a fifty-two week high of $121.66. The company has a quick ratio of 0.63, a current ratio of 0.63 and a debt-to-equity ratio of 0.07. The stock has a market cap of $6.37 billion, a PE ratio of 14.40, a price-to-earnings-growth ratio of 1.47 and a beta of 1.36.
Cullen/Frost Bankers (NYSE:CFR) last announced its earnings results on Thursday, January 31st. The bank reported $1.82 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.75 by $0.07. Cullen/Frost Bankers had a net margin of 32.11% and a return on equity of 14.48%. The company had revenue of $360.93 million for the quarter, compared to analysts’ expectations of $344.18 million. As a group, research analysts anticipate that Cullen/Frost Bankers will post 7.11 earnings per share for the current year.
In related news, insider Bobby Berman sold 1,391 shares of the business’s stock in a transaction dated Monday, November 19th. The shares were sold at an average price of $101.12, for a total value of $140,657.92. Following the sale, the insider now directly owns 28,112 shares in the company, valued at approximately $2,842,685.44. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Cynthia Jane Comparin acquired 1,000 shares of Cullen/Frost Bankers stock in a transaction that occurred on Friday, December 14th. The stock was bought at an average price of $93.38 per share, for a total transaction of $93,380.00. Following the completion of the acquisition, the director now owns 1,000 shares in the company, valued at approximately $93,380. The disclosure for this purchase can be found here. 4.64% of the stock is owned by insiders.
A number of institutional investors and hedge funds have recently modified their holdings of the stock. Macquarie Group Ltd. bought a new stake in shares of Cullen/Frost Bankers during the second quarter worth $184,000. Montrusco Bolton Investments Inc. grew its stake in shares of Cullen/Frost Bankers by 46.8% during the third quarter. Montrusco Bolton Investments Inc. now owns 175,598 shares of the bank’s stock worth $18,339,000 after buying an additional 55,976 shares during the last quarter. Community Bank & Trust Waco Texas bought a new stake in shares of Cullen/Frost Bankers during the third quarter worth $376,000. Dorsey Wright & Associates bought a new stake in shares of Cullen/Frost Bankers during the third quarter worth $265,000. Finally, Callahan Advisors LLC grew its stake in shares of Cullen/Frost Bankers by 4.0% during the third quarter. Callahan Advisors LLC now owns 42,405 shares of the bank’s stock worth $4,429,000 after buying an additional 1,632 shares during the last quarter. Hedge funds and other institutional investors own 78.46% of the company’s stock.
Cullen/Frost Bankers Company Profile
Cullen/Frost Bankers, Inc operates as the holding company for Frost Bank that offers commercial and consumer banking services in Texas. The company operates in two segments, Banking and Frost Wealth Advisors. It provides commercial banking services to corporations and other business clients, including financing for industrial and commercial properties, interim construction, equipment, inventories and accounts receivable, and acquisition financing; commercial leasing; and treasury management services.
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