Zacks Investment Research lowered shares of Cullen/Frost Bankers Inc. (NYSE:CFR) from a buy rating to a hold rating in a research report report published on Tuesday morning.
According to Zacks, “Cullen/Frost’s estimates have been stable lately ahead of the company’s third-quarter 2016 earnings release. The company has positive record of earnings surprises in recent quarters. Cullen/Frost’s organic growth remains on track with increasing loans and deposits balances. Further, in a rising interest rate environment, the company’s non-interest bearing deposits, which are a major low-cost funding source, will likely have a positive impact on net interest income and net interest margin. Notably, management expects 2016 EPS to exceed market expectations of $4.39. However, rising costs stemming largely from expanding franchise are likely to deter bottom-line growth. Also, significant exposure to the risky real estate loans and deteriorating credit quality as a result of the still weak energy sector, continue to pose near-term headwinds, along with stringent regulatory requirements.”
Several other analysts also recently weighed in on CFR. Evercore ISI upgraded Cullen/Frost Bankers from a sell rating to a hold rating and upped their price objective for the stock from $52.00 to $67.00 in a research report on Thursday, June 9th. Maxim Group upped their price objective on Cullen/Frost Bankers from $70.00 to $85.00 and gave the stock a buy rating in a research report on Thursday, July 28th. Compass Point began coverage on Cullen/Frost Bankers in a research report on Tuesday, June 7th. They set a neutral rating and a $65.00 price objective for the company. Royal Bank Of Canada upped their price objective on Cullen/Frost Bankers from $63.00 to $70.00 and gave the stock a sector perform rating in a research report on Thursday, July 28th. Finally, RBC Capital Markets restated a sector perform rating and set a $70.00 price objective (up from $63.00) on shares of Cullen/Frost Bankers in a research report on Thursday, July 28th. Four analysts have rated the stock with a sell rating, seven have given a hold rating and four have assigned a buy rating to the company. The company presently has a consensus rating of Hold and an average price target of $67.24.
Cullen/Frost Bankers (NYSE:CFR) traded up 3.18% during trading on Tuesday, hitting $74.03. The stock had a trading volume of 126,448 shares. Cullen/Frost Bankers has a 52 week low of $42.41 and a 52 week high of $74.12. The company has a 50-day moving average of $70.97 and a 200 day moving average of $65.03. The company has a market cap of $4.60 billion, a price-to-earnings ratio of 17.49 and a beta of 1.11.
Cullen/Frost Bankers (NYSE:CFR) last announced its quarterly earnings data on Wednesday, July 27th. The company reported $1.11 earnings per share for the quarter, topping the consensus estimate of $1.05 by $0.06. Cullen/Frost Bankers had a return on equity of 9.67% and a net margin of 24.81%. During the same quarter in the prior year, the company posted $1.11 earnings per share. On average, equities research analysts anticipate that Cullen/Frost Bankers will post $4.56 EPS for the current year.
The firm also recently announced a quarterly dividend, which was paid on Thursday, September 15th. Investors of record on Wednesday, August 31st were paid a dividend of $0.54 per share. The ex-dividend date of this dividend was Monday, August 29th. This represents a $2.16 annualized dividend and a yield of 3.01%. Cullen/Frost Bankers’s dividend payout ratio is currently 50.82%.
In related news, insider Patrick B. Frost sold 10,500 shares of the firm’s stock in a transaction that occurred on Monday, August 1st. The stock was sold at an average price of $67.73, for a total transaction of $711,165.00. Following the completion of the sale, the insider now owns 160,147 shares of the company’s stock, valued at $10,846,756.31. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Candace K. Wolfshohl sold 4,500 shares of the firm’s stock in a transaction that occurred on Monday, September 12th. The stock was sold at an average price of $69.88, for a total value of $314,460.00. Following the sale, the insider now directly owns 8,145 shares of the company’s stock, valued at approximately $569,172.60. The disclosure for this sale can be found here. Corporate insiders own 8.03% of the company’s stock.
A number of large investors have recently added to or reduced their stakes in the company. Bessemer Group Inc. boosted its stake in Cullen/Frost Bankers by 5.3% in the first quarter. Bessemer Group Inc. now owns 2,033 shares of the company’s stock valued at $112,000 after buying an additional 103 shares in the last quarter. Creative Planning raised its position in shares of Cullen/Frost Bankers by 112.3% in the second quarter. Creative Planning now owns 3,132 shares of the company’s stock valued at $200,000 after buying an additional 1,657 shares during the last quarter. Rench Wealth Management Inc. purchased a new position in shares of Cullen/Frost Bankers during the second quarter valued at about $204,000. LS Investment Advisors LLC raised its position in shares of Cullen/Frost Bankers by 72.2% in the second quarter. LS Investment Advisors LLC now owns 3,267 shares of the company’s stock valued at $208,000 after buying an additional 1,370 shares during the last quarter. Finally, Fruth Investment Management purchased a new position in shares of Cullen/Frost Bankers during the second quarter valued at about $216,000. 84.81% of the stock is owned by institutional investors and hedge funds.
About Cullen/Frost Bankers
Cullen/Frost Bankers, Inc is a financial holding and bank holding company. The Company, through its subsidiaries, offers commercial and consumer banking services, as well as trust and investment management, insurance, brokerage, mutual funds, leasing, treasury management, capital markets advisory and item processing services.