Zacks Investment Research cut shares of First Republic Bank (NYSE:FRC) from a hold rating to a sell rating in a research report released on Tuesday, October 17th.
According to Zacks, “Shares of First Republic have underperformed the industry over the last six months. Also, its earnings surprise history is not impressive. The bank missed the Zacks Consensus Estimate in two of the trailing four quarters. Third-quarter 2017 results missed the Zacks Consensus Estimate reflecting increased expenses and lower net interest margin. However, revenues increased. Escalating costs owing to investments in digital initiatives are expected to hurt the bank’s bottom-line growth further. Though it remains well positioned for growth, given its simpler business model and non-engagement in additional businesses, First Republic’s stretched valuation indicates limited upside potential for the stock.”
FRC has been the subject of a number of other reports. Wedbush reissued an outperform rating and issued a $121.00 price objective on shares of First Republic Bank in a report on Tuesday, June 27th. BidaskClub raised First Republic Bank from a hold rating to a buy rating in a report on Saturday, July 1st. Morgan Stanley reissued an equal weight rating and issued a $104.00 price objective (up from $102.00) on shares of First Republic Bank in a report on Thursday, July 6th. Royal Bank Of Canada reissued a hold rating and issued a $98.00 price objective on shares of First Republic Bank in a report on Friday, July 7th. Finally, Barclays PLC reissued an equal weight rating and issued a $110.00 price objective (up from $101.00) on shares of First Republic Bank in a report on Wednesday, July 12th. Two investment analysts have rated the stock with a sell rating, eight have assigned a hold rating and six have assigned a buy rating to the stock. The stock presently has a consensus rating of Hold and an average target price of $102.93.
First Republic Bank (NYSE:FRC) traded down 0.67% during mid-day trading on Tuesday, hitting $98.90. The company had a trading volume of 402,895 shares. The company has a market capitalization of $15.62 billion, a P/E ratio of 23.33 and a beta of 1.01. First Republic Bank has a 52-week low of $72.43 and a 52-week high of $105.52. The company has a 50-day moving average price of $99.82 and a 200 day moving average price of $97.61.
First Republic Bank (NYSE:FRC) last announced its quarterly earnings results on Friday, October 13th. The bank reported $1.14 earnings per share for the quarter, missing analysts’ consensus estimates of $1.16 by ($0.02). The company had revenue of $670.30 million for the quarter, compared to analyst estimates of $678.25 million. First Republic Bank had a return on equity of 12.06% and a net margin of 26.85%. The firm’s revenue for the quarter was up 20.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.00 earnings per share. On average, analysts forecast that First Republic Bank will post $4.37 EPS for the current fiscal year.
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The company also recently announced a quarterly dividend, which will be paid on Thursday, November 9th. Investors of record on Thursday, October 26th will be given a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a yield of 0.68%. The ex-dividend date of this dividend is Wednesday, October 25th. First Republic Bank’s dividend payout ratio (DPR) is presently 16.04%.
A number of hedge funds have recently added to or reduced their stakes in the stock. Crossmark Global Holdings Inc. acquired a new stake in First Republic Bank during the third quarter worth about $388,000. Raymond James Financial Services Advisors Inc. grew its position in First Republic Bank by 8.3% during the third quarter. Raymond James Financial Services Advisors Inc. now owns 15,020 shares of the bank’s stock worth $1,569,000 after buying an additional 1,151 shares in the last quarter. California Capital Advisors Inc. bought a new position in First Republic Bank during the third quarter worth about $639,000. Korea Investment CORP lifted its stake in First Republic Bank by 19.9% during the third quarter. Korea Investment CORP now owns 255,928 shares of the bank’s stock worth $26,734,000 after purchasing an additional 42,400 shares during the period. Finally, Aperio Group LLC lifted its stake in First Republic Bank by 2.6% during the third quarter. Aperio Group LLC now owns 55,621 shares of the bank’s stock worth $5,810,000 after purchasing an additional 1,393 shares during the period. 97.55% of the stock is currently owned by institutional investors and hedge funds.
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.
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