Citigroup Has Lowered Expectations for Zions Bancorporation, N.A. (NASDAQ:ZION) Stock Price

Key Points

• Citigroup lowered its price target for Zions Bancorporation from $73 to $70 while maintaining a “neutral” rating, implying about 6.8% upside from the stock’s $65.57 price.
• Zions reported stronger-than-expected quarterly earnings of $1.78 per share versus the $1.64 consensus estimate, although revenue of $887 million was slightly below expectations.
• Analyst sentiment remains mixed, with the stock carrying a consensus “Hold” rating and an average price target of $72.88; Zions also authorized a $75 million share buyback.

Zions Bancorporation, N.A. (NASDAQ:ZION - Get Free Report) had its price objective decreased by stock analysts at Citigroup from $73.00 to $70.00 in a research note issued on Wednesday, Benzinga reports. The brokerage currently has a "neutral" rating on the bank's stock. Citigroup's price target would suggest a potential upside of 6.76% from the company's current price.

ZION has been the subject of several other reports. JPMorgan Chase & Co. increased their price objective on Zions Bancorporation, N.A. from $86.00 to $87.00 and gave the stock an "underweight" rating in a report on Tuesday. Robert W. Baird raised shares of Zions Bancorporation, N.A. from a "neutral" rating to an "outperform" rating and set a $75.00 target price for the company in a research report on Thursday, October 15th. Piper Sandler raised their price target on shares of Zions Bancorporation, N.A. from $68.00 to $69.00 and gave the company a "neutral" rating in a report on Wednesday. Royal Bank Of Canada reaffirmed a "sector perform" rating and issued a $76.00 price objective on shares of Zions Bancorporation, N.A. in a research note on Tuesday. Finally, Cantor Fitzgerald decreased their price objective on shares of Zions Bancorporation, N.A. from $80.00 to $76.00 and set an "overweight" rating for the company in a report on Wednesday, October 14th. Seven analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, Zions Bancorporation, N.A. presently has a consensus rating of "Hold" and an average target price of $72.88.

Zions Bancorporation, N.A. Price Performance

NASDAQ ZION traded up $0.98 on Wednesday, reaching $65.57. The company's stock had a trading volume of 1,121,197 shares, compared to its average volume of 1,656,126. The firm's 50 day moving average is $66.09 and its two-hundred day moving average is $65.68. The stock has a market cap of $9.57 billion, a PE ratio of 8.05, a PEG ratio of 1.04 and a beta of 0.84. The company has a debt-to-equity ratio of 0.26, a quick ratio of 0.84 and a current ratio of 0.84. Zions Bancorporation, N.A. has a twelve month low of $48.50 and a twelve month high of $73.34.

Zions Bancorporation, N.A. (NASDAQ:ZION - Get Free Report) last posted its quarterly earnings data on Monday, October 19th. The bank reported $1.78 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.64 by $0.14. The firm had revenue of $887.00 million for the quarter, compared to the consensus estimate of $889.52 million. Zions Bancorporation, N.A. had a return on equity of 13.91% and a net margin of 24.81%. During the same quarter in the previous year, the company earned $1.48 EPS. As a group, sell-side analysts predict that Zions Bancorporation, N.A. will post 6.60 EPS for the current year.

Zions Bancorporation, N.A. announced that its Board of Directors has initiated a stock buyback plan on Thursday, July 30th that allows the company to buy back $75.00 million in outstanding shares. This repurchase authorization allows the bank to repurchase up to 0.7% of its stock through open market purchases. Share repurchase plans are usually an indication that the company's board believes its shares are undervalued.

Insider Activity

In related news, EVP Scott A. Law sold 4,608 shares of the company's stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $72.42, for a total value of $333,711.36. Following the sale, the executive vice president owned 32,890 shares of the company's stock, valued at $2,381,893.80. The trade was a 12.29% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, President Scott J. Mclean sold 33,285 shares of the stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $70.63, for a total transaction of $2,350,919.55. Following the completion of the transaction, the president directly owned 73,043 shares of the company's stock, valued at $5,159,027.09. This trade represents a 31.30% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 88,787 shares of company stock worth $6,283,858. 1.43% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Zions Bancorporation, N.A.

Institutional investors have recently added to or reduced their stakes in the stock. Pension & Wealth Management Advisors Inc. acquired a new position in shares of Zions Bancorporation, N.A. in the 3rd quarter worth approximately $27,000. Elevation Wealth Partners LLC raised its stake in shares of Zions Bancorporation, N.A. by 528.8% in the second quarter. Elevation Wealth Partners LLC now owns 415 shares of the bank's stock valued at $29,000 after acquiring an additional 349 shares during the last quarter. Trust Co. of Vermont bought a new position in shares of Zions Bancorporation, N.A. in the second quarter valued at approximately $35,000. Northwestern Mutual Wealth Management Co. bought a new position in shares of Zions Bancorporation, N.A. in the second quarter valued at approximately $45,000. Finally, Burnham & Co LLC acquired a new position in shares of Zions Bancorporation, N.A. in the 2nd quarter worth approximately $55,000. 76.84% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Zions Bancorporation, N.A.

Here are the key news stories impacting Zions Bancorporation, N.A. this week:

• Positive Sentiment: Third-quarter earnings beat expectations: Zions reported $1.78 in diluted EPS, up from $1.48 a year earlier and above the $1.64 consensus estimate. Net earnings applicable to common shareholders rose to $262 million. Zions Bancorporation Third Quarter Financial Results
• Positive Sentiment: Credit trends improved significantly: Net loan and lease charge-offs fell to $3 million from $56 million in the prior-year quarter, while the provision for credit losses became an $8 million benefit versus a $49 million expense previously. Deposits grew 4% year over year to $77.9 billion, loans increased 4% to $62.5 billion, and the estimated common equity tier 1 ratio improved to 11.8% from 11.3%. Zions Third Quarter Net Earnings
• Positive Sentiment: Several analysts raised price targets: DA Davidson increased its target to $80 and maintained a “buy” rating; JPMorgan raised its target to $87; and Piper Sandler lifted its target to $69. These revisions acknowledge the earnings performance, although JPMorgan and Piper Sandler still carry negative or neutral ratings.
• Neutral Sentiment: Revenue was approximately in line to slightly below expectations: Reported revenue was cited at roughly $881 million to $887 million, compared with consensus near $890 million. Net interest income rose 2% to $684 million, while noninterest expense increased 5% to $553 million.
• Negative Sentiment: Analyst caution remains: Morgan Stanley lowered its price target to $77 and retained an “underweight” rating. TD Cowen kept a “hold” rating, while RBC maintained “sector perform.” This suggests analysts see limited near-term upside despite the improved quarterly results.

About Zions Bancorporation, N.A.

Zions Bancorporation, N.A. is a regional financial services company headquartered in Salt Lake City, Utah. Through its affiliated banks, the company provides banking and related financial services to individuals, small businesses, middle-market companies, and institutional clients.

Its offerings include commercial and industrial lending, commercial real estate financing, small-business banking, consumer loans, residential mortgages, deposit accounts, treasury management, investment services, and private banking.

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