First Republic Bank (NYSE:FRC) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Monday. The brokerage currently has a $82.00 target price on the stock. Zacks Investment Research’s target price suggests a potential downside of 0.77% from the stock’s current price.
According to Zacks, “First Republic’s growth prospects look encouraging following management’s comments in its Investor Day that reflected bullish tone. It continues to expect EPS growth including 50% loan growth from existing clients and has two product initiatives for high potential clients. Notably, the company’s third-quarter 2016 earnings beat the Zacks Consensus Estimate, driven by higher revenue and a decline in provisions, partially offset by higher non-interest expense. The bank is well positioned for growth, given its simpler business model and non-engagement in additional businesses, as compared to most large banking institutions. Further, consistent growth in loans and deposits, as well as rising fee income, will continue to support organic growth. However, margin pressure amid low rate scenario and stricter regulatory landscape remain concerns.”
A number of other analysts also recently issued reports on the stock. Jefferies Group reiterated a “buy” rating and issued a $85.00 price target on shares of First Republic Bank in a report on Wednesday, October 19th. Barclays PLC set a $81.00 price target on shares of First Republic Bank and gave the company a “buy” rating in a report on Saturday, October 15th. Keefe, Bruyette & Woods restated a “hold” rating on shares of First Republic Bank in a report on Friday, October 14th. Maxim Group boosted their target price on shares of First Republic Bank from $83.00 to $86.00 and gave the stock a “buy” rating in a report on Friday, October 14th. Finally, FBR & Co boosted their target price on shares of First Republic Bank from $73.00 to $80.00 and gave the stock a “mkt perform” rating in a report on Friday, October 14th. Five research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company’s stock. First Republic Bank currently has an average rating of “Buy” and an average target price of $80.55.
Shares of First Republic Bank (NYSE:FRC) traded up 0.33% during mid-day trading on Monday, reaching $82.64. 387,258 shares of the company’s stock traded hands. The firm has a market capitalization of $12.41 billion, a price-to-earnings ratio of 22.08 and a beta of 0.93. The stock has a 50-day moving average price of $77.63 and a 200 day moving average price of $73.63. First Republic Bank has a 12-month low of $56.32 and a 12-month high of $86.32.
First Republic Bank (NYSE:FRC) last announced its quarterly earnings results on Thursday, October 13th. The company reported $1.00 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.99 by $0.01. The company had revenue of $557.90 million for the quarter, compared to the consensus estimate of $592.65 million. First Republic Bank had a net margin of 27.68% and a return on equity of 12.95%. First Republic Bank’s revenue for the quarter was up 10.6% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.79 EPS. Analysts anticipate that First Republic Bank will post $3.92 EPS for the current fiscal year.
The business also recently disclosed a quarterly dividend, which was paid on Thursday, November 10th. Shareholders of record on Thursday, October 27th were given a $0.16 dividend. The ex-dividend date was Tuesday, October 25th. This represents a $0.64 annualized dividend and a yield of 0.77%. First Republic Bank’s dividend payout ratio (DPR) is 17.34%.
Large investors have recently added to or reduced their stakes in the stock. Royal Bank of Canada boosted its stake in First Republic Bank by 66.9% in the second quarter. Royal Bank of Canada now owns 2,320,272 shares of the company’s stock valued at $162,397,000 after buying an additional 929,702 shares during the period. Ownership Capital B.V. boosted its stake in First Republic Bank by 15.0% in the second quarter. Ownership Capital B.V. now owns 851,341 shares of the company’s stock valued at $59,585,000 after buying an additional 111,328 shares during the period. First Republic Investment Management Inc. boosted its stake in First Republic Bank by 99.6% in the first quarter. First Republic Investment Management Inc. now owns 764,592 shares of the company’s stock valued at $50,953,000 after buying an additional 381,494 shares during the period. GW&K Investment Management LLC boosted its stake in First Republic Bank by 9.7% in the second quarter. GW&K Investment Management LLC now owns 362,397 shares of the company’s stock valued at $25,364,000 after buying an additional 32,104 shares during the period. Finally, Pacific Heights Asset Management LLC bought a new stake in First Republic Bank during the second quarter valued at about $11,338,000. 97.41% of the stock is owned by institutional investors.
About First Republic Bank
First Republic Bank is a commercial bank and trust company. The Bank specializes in providing services, including private banking, private business banking, real estate lending and wealth management services, including trust and custody services, to clients in selected metropolitan areas in the United States.