People’s United Financial (NASDAQ:PBCT) Downgraded by Zacks Investment Research to Hold

Zacks Investment Research lowered shares of People’s United Financial (NASDAQ:PBCT) from a buy rating to a hold rating in a research note issued to investors on Tuesday morning, reports. Zacks Investment Research currently has $16.50 price objective on the bank’s stock.

According to Zacks, “Shares of People’s United have underperformed the industry in the past six months. The company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in all of the trailing four quarters. People’s United’s plans to merge with M&T Bank Corporation in an all-stock deal worth $7.6 billion. It has been also expanding via strategic acquisitions, supported by a healthy balance sheet. Gradual rise in loan demand will support net interest margin (NIM) amid the low-interest scenario in the time to come. The company’s solid capital-deployment activities seem sustainable. However, the company’s significant exposure to commercial loans makes us apprehensive. Rising operating expenses due to merger-related costs and higher compensation costs limit People’s United's bottom-line extent.”

Separately, Morgan Stanley cut their price objective on shares of People’s United Financial from $21.00 to $20.50 and set an equal weight rating on the stock in a research report on Monday, August 2nd. Six equities research analysts have rated the stock with a hold rating and one has issued a buy rating to the company. According to, People’s United Financial currently has a consensus rating of Hold and a consensus target price of $16.79.

Shares of People’s United Financial stock opened at $16.73 on Tuesday. The firm’s 50 day moving average price is $16.05 and its 200-day moving average price is $17.32. The company has a quick ratio of 0.88, a current ratio of 0.88 and a debt-to-equity ratio of 0.21. People’s United Financial has a 52-week low of $9.73 and a 52-week high of $19.62. The company has a market cap of $7.16 billion, a P/E ratio of 10.79 and a beta of 1.22.

People’s United Financial (NASDAQ:PBCT) last issued its quarterly earnings data on Wednesday, July 14th. The bank reported $0.41 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.35 by $0.06. People’s United Financial had a net margin of 30.99% and a return on equity of 8.53%. The firm had revenue of $551.70 million for the quarter, compared to the consensus estimate of $497.60 million. During the same quarter in the previous year, the firm earned $0.24 EPS. The company’s quarterly revenue was up 11.3% compared to the same quarter last year. As a group, equities research analysts forecast that People’s United Financial will post 1.4 EPS for the current fiscal year.

The business also recently announced a quarterly dividend, which was paid on Sunday, August 15th. Investors of record on Sunday, August 1st were paid a $0.183 dividend. This represents a $0.73 dividend on an annualized basis and a yield of 4.38%. The ex-dividend date was Thursday, July 29th. People’s United Financial’s dividend payout ratio (DPR) is presently 57.48%.

Hedge funds have recently added to or reduced their stakes in the stock. Newbridge Financial Services Group Inc. acquired a new stake in People’s United Financial during the 2nd quarter valued at approximately $57,000. Parametric Portfolio Associates LLC lifted its stake in People’s United Financial by 5.3% during the 2nd quarter. Parametric Portfolio Associates LLC now owns 2,512,066 shares of the bank’s stock valued at $43,057,000 after acquiring an additional 127,007 shares during the period. Marshall Wace LLP lifted its stake in People’s United Financial by 3,474.5% during the 2nd quarter. Marshall Wace LLP now owns 380,000 shares of the bank’s stock valued at $6,513,000 after acquiring an additional 369,369 shares during the period. Mariner LLC acquired a new stake in People’s United Financial during the 2nd quarter valued at approximately $290,000. Finally, Morgan Stanley lifted its stake in People’s United Financial by 14.8% during the 2nd quarter. Morgan Stanley now owns 3,352,459 shares of the bank’s stock valued at $57,461,000 after acquiring an additional 430,958 shares during the period. Institutional investors own 70.79% of the company’s stock.

About People’s United Financial

People’s United Financial, Inc is a bank and financial holding company, which engages in the commercial banking, retail and business banking, and wealth management services to individual, corporate, and municipal customers. It operates through the Commercial Banking and Retail Banking segments. The Commercial Banking segment offers commercial real estate lending, middle market and business banking, mortgage warehouse and asset-based lending, and the equipment financing operations.

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