SVB Financial Group (NASDAQ:SIVB) shares rose 6% on Friday following a better than expected earnings announcement. The stock traded as high as $244.43 and last traded at $242.09. Approximately 1,257,163 shares were traded during trading, an increase of 90% from the average daily volume of 661,404 shares. The stock had previously closed at $228.36.
The bank reported $4.96 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $4.69 by $0.27. The company had revenue of $673.69 million for the quarter, compared to the consensus estimate of $697.89 million. SVB Financial Group had a return on equity of 18.39% and a net margin of 32.44%. SVB Financial Group’s quarterly revenue was up 30.0% compared to the same quarter last year. During the same period in the previous year, the business earned $2.19 earnings per share.
SVB Financial Group declared that its board has authorized a stock buyback plan on Tuesday, November 13th that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the bank to repurchase up to 3.9% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s board believes its shares are undervalued.
A number of equities research analysts have commented on SIVB shares. Bank of America decreased their price target on SVB Financial Group from $400.00 to $350.00 and set a “buy” rating on the stock in a report on Friday, October 26th. Zacks Investment Research cut SVB Financial Group from a “buy” rating to a “hold” rating in a report on Wednesday, January 16th. ValuEngine raised SVB Financial Group from a “strong sell” rating to a “sell” rating in a report on Wednesday, January 2nd. Barclays reduced their target price on SVB Financial Group from $357.00 to $330.00 and set an “equal weight” rating on the stock in a report on Friday, October 26th. Finally, Royal Bank of Canada set a $330.00 target price on SVB Financial Group and gave the stock a “buy” rating in a report on Friday, October 26th. One equities research analyst has rated the stock with a sell rating, three have given a hold rating, seventeen have given a buy rating and one has given a strong buy rating to the company. SVB Financial Group presently has an average rating of “Buy” and an average target price of $316.35.
In other SVB Financial Group news, insider Philip C. Cox sold 620 shares of the business’s stock in a transaction that occurred on Wednesday, November 28th. The stock was sold at an average price of $238.96, for a total transaction of $148,155.20. Following the sale, the insider now directly owns 6,511 shares of the company’s stock, valued at $1,555,868.56. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Michael Descheneaux sold 1,750 shares of the business’s stock in a transaction that occurred on Thursday, November 1st. The stock was sold at an average price of $239.73, for a total value of $419,527.50. Following the sale, the insider now directly owns 18,289 shares in the company, valued at $4,384,421.97. The disclosure for this sale can be found here. Insiders own 0.74% of the company’s stock.
Several large investors have recently made changes to their positions in SIVB. FMR LLC boosted its position in shares of SVB Financial Group by 71.7% during the second quarter. FMR LLC now owns 33,999 shares of the bank’s stock valued at $9,818,000 after buying an additional 14,193 shares during the period. Tower Research Capital LLC TRC boosted its position in shares of SVB Financial Group by 12,300.0% during the second quarter. Tower Research Capital LLC TRC now owns 992 shares of the bank’s stock valued at $286,000 after buying an additional 984 shares during the period. Putnam Investments LLC purchased a new position in shares of SVB Financial Group during the second quarter valued at approximately $223,000. Andra AP fonden purchased a new position in shares of SVB Financial Group during the second quarter valued at approximately $3,234,000. Finally, Bank of New York Mellon Corp boosted its position in shares of SVB Financial Group by 56.5% during the second quarter. Bank of New York Mellon Corp now owns 1,306,038 shares of the bank’s stock valued at $377,130,000 after buying an additional 471,329 shares during the period. Institutional investors and hedge funds own 87.88% of the company’s stock.
The stock has a market cap of $12.02 billion, a PE ratio of 24.43, a P/E/G ratio of 1.11 and a beta of 1.87. The company has a debt-to-equity ratio of 0.14, a current ratio of 0.63 and a quick ratio of 0.63.
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About SVB Financial Group (NASDAQ:SIVB)
SVB Financial Group, a diversified financial services company, provides various banking and financial products and services. Its Global Commercial Bank segment offers deposit products, such as business and analysis checking, money market, multi-currency, in-country bank, and sweep accounts, as well as merchant, remote capture, lockbox, electronic deposit capture, and fraud control services; credit products and services comprising term loans, equipment loans, asset-based loans, revolving lines of credit, accounts-receivable-based lines of credit, capital call lines of credit, and credit cards; and payment and cash management products and services, including wire transfer and automated clearing house payment, bill pay, debit card account analysis, and disbursement, as well as online and mobile banking services.
Further Reading: Quick Ratio
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