U.S. Bancorp (USB) Downgraded to “Sell” at Zacks Investment Research

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U.S. Bancorp (NYSE:USB) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued 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.”

USB has been the subject of several other research reports. Jefferies Financial Group cut U.S. Bancorp from a “buy” rating to a “hold” rating in a research report on Tuesday, January 8th. Oppenheimer increased their price objective on U.S. Bancorp from $58.00 to $62.00 and gave the stock an “outperform” rating in a research report on Tuesday, March 26th. Robert W. Baird cut U.S. Bancorp from an “outperform” rating to a “neutral” rating and set a $51.00 price objective for the company. in a research report on Monday, January 28th. Finally, Barclays increased their price objective on U.S. Bancorp from $61.00 to $64.00 and gave the stock an “overweight” rating in a research report on Wednesday, January 2nd. Three equities research analysts have rated the stock with a sell rating, nine have assigned a hold rating and four have given a buy rating to the stock. The stock currently has an average rating of “Hold” and a consensus target price of $58.08.

NYSE:USB traded down $0.41 during trading hours on Monday, hitting $49.81. The company’s stock had a trading volume of 2,983,749 shares, compared to its average volume of 6,657,332. The stock has a market capitalization of $80.17 billion, a price-to-earnings ratio of 12.15, a PEG ratio of 1.64 and a beta of 1.06. The company has a debt-to-equity ratio of 0.91, a quick ratio of 0.85 and a current ratio of 0.85. U.S. Bancorp has a 52-week low of $43.14 and a 52-week high of $55.56.

U.S. Bancorp (NYSE:USB) last released its quarterly earnings data on Wednesday, January 16th. The financial services provider reported $1.07 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.06 by $0.01. The firm had revenue of $5.83 billion during the quarter, compared to analysts’ expectations of $5.73 billion. U.S. Bancorp had a return on equity of 15.64% and a net margin of 27.53%. U.S. Bancorp’s revenue was up 4.1% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.88 earnings per share. On average, analysts predict that U.S. Bancorp will post 4.31 EPS for the current year.

In other news, Vice Chairman Leslie V. Godridge sold 14,737 shares of the firm’s stock in a transaction on Monday, February 4th. The stock was sold at an average price of $51.50, for a total value of $758,955.50. Following the completion of the transaction, the insider now 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. Company insiders own 0.24% of the company’s stock.

Hedge funds have recently made changes to their positions in the company. HC Financial Advisors Inc. increased its position in U.S. Bancorp by 5.2% during the 3rd quarter. HC Financial Advisors Inc. now owns 42,967 shares of the financial services provider’s stock worth $2,269,000 after purchasing an additional 2,143 shares in the last quarter. Bank of New York Mellon Corp increased its position in U.S. Bancorp by 0.6% during the 3rd quarter. Bank of New York Mellon Corp now owns 15,961,974 shares of the financial services provider’s stock worth $842,951,000 after purchasing an additional 94,114 shares in the last quarter. CI Investments Inc. increased its position in U.S. Bancorp by 2.3% during the 3rd quarter. CI Investments Inc. now owns 915,600 shares of the financial services provider’s stock worth $48,353,000 after purchasing an additional 21,000 shares in the last quarter. Caxton Associates LP purchased a new stake in U.S. Bancorp during the 3rd quarter worth about $289,000. Finally, Verition Fund Management LLC increased its position in U.S. Bancorp by 94.6% during the 3rd quarter. Verition Fund Management LLC now owns 17,674 shares of the financial services provider’s stock worth $933,000 after purchasing an additional 8,594 shares in the last quarter. Institutional investors and hedge funds 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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