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

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

Other equities research analysts have also recently issued reports about the stock. Jefferies Financial Group cut shares of U.S. Bancorp from a “buy” rating to a “hold” rating in a research report on Tuesday, January 8th. Robert W. Baird cut shares of U.S. Bancorp from an “outperform” rating to a “neutral” rating and set a $51.00 price objective on the stock. in a research report on Monday, January 28th. Oppenheimer boosted their price objective on shares of U.S. Bancorp from $58.00 to $62.00 and gave the company an “outperform” rating in a research report on Tuesday, March 26th. Finally, Barclays boosted their price objective on shares of U.S. Bancorp from $61.00 to $64.00 and gave the company 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 issued a hold rating and four have issued a buy rating to the company’s stock. U.S. Bancorp has an average rating of “Hold” and an average target price of $58.08.

USB opened at $50.28 on Monday. The firm has a market capitalization of $80.37 billion, a P/E ratio of 12.26, a P/E/G ratio of 1.66 and a beta of 1.07. U.S. Bancorp has a 12 month low of $43.14 and a 12 month high of $55.56. The company has a current ratio of 0.85, a quick ratio of 0.85 and a debt-to-equity ratio of 0.91.

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

In other U.S. Bancorp news, Vice Chairman Leslie V. Godridge sold 14,737 shares of the business’s stock in a transaction dated Monday, February 4th. The shares were sold at an average price of $51.50, for a total transaction of $758,955.50. Following the sale, the insider now directly owns 61,737 shares of the company’s stock, valued at approximately $3,179,455.50. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Insiders own 0.24% of the company’s stock.

A number of large investors have recently modified their holdings of USB. HC Financial Advisors Inc. lifted 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 buying an additional 2,143 shares in the last quarter. Bank of New York Mellon Corp increased its stake in shares of 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 during the last quarter. CI Investments Inc. increased its stake in shares of 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 during the last quarter. Caxton Associates LP acquired a new position in shares of U.S. Bancorp during the 3rd quarter worth about $289,000. Finally, Verition Fund Management LLC increased its stake in shares of 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 during the last quarter. 75.82% of the stock is currently owned by hedge funds and other institutional investors.

About U.S. Bancorp

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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