Keefe, Bruyette & Woods Forecasts Strong Price Appreciation for United Community Banks (NYSE:UCB) Stock

Key Points

• Keefe, Bruyette & Woods raised United Community Banks’ price target to $41 from $40 and maintained an “outperform” rating, implying 16.85% upside from the prior close. Analysts overall rate the stock “Moderate Buy,” with an average target of $39.60.
• UCB shares fell 0.7% to $35.09, while the company’s latest quarterly earnings came in at $0.71 per share, below the $0.80 analyst consensus; revenue totaled $279.28 million.
• Institutional investors own 82.29% of the stock, including recent new positions from Bank of New York Mellon, Norges Bank and Vaughan Nelson Investment Management. Two executives also sold shares in late July.

United Community Banks (NYSE:UCB - Get Free Report) had its target price hoisted by equities research analysts at Keefe, Bruyette & Woods from $40.00 to $41.00 in a research note issued to investors on Wednesday, Benzinga reports. The firm presently has an "outperform" rating on the stock. Keefe, Bruyette & Woods' target price would suggest a potential upside of 16.85% from the stock's previous close.

UCB has been the subject of a number of other reports. Piper Sandler increased their target price on United Community Banks from $37.00 to $38.00 and gave the company a "neutral" rating in a research report on Wednesday, September 9th. TD Cowen raised shares of United Community Banks to a "strong-buy" rating in a research note on Thursday, July 16th. Weiss Ratings raised shares of United Community Banks from a "buy (b-)" rating to a "buy (b)" rating in a research note on Tuesday, June 30th. Wall Street Zen upgraded shares of United Community Banks from a "sell" rating to a "hold" rating in a report on Saturday. Finally, DA Davidson increased their price target on shares of United Community Banks from $40.00 to $42.00 and gave the company a "buy" rating in a report on Wednesday, September 9th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat, United Community Banks currently has an average rating of "Moderate Buy" and an average price target of $39.60.

United Community Banks Stock Down 0.7%

NYSE:UCB traded down $0.25 during trading hours on Wednesday, reaching $35.09. 288,407 shares of the company traded hands, compared to its average volume of 891,359. The company has a current ratio of 0.83, a quick ratio of 0.83 and a debt-to-equity ratio of 0.22. The business's 50-day moving average price is $35.57 and its two-hundred day moving average price is $33.84. United Community Banks has a 1 year low of $28.65 and a 1 year high of $37.18. The stock has a market capitalization of $4.23 billion, a P/E ratio of 11.54 and a beta of 0.81.

United Community Banks (NYSE:UCB - Get Free Report) last announced its quarterly earnings results on Tuesday, July 21st. The company reported $0.71 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.80 by ($0.09). The company had revenue of $279.28 million for the quarter. United Community Banks had a net margin of 24.43% and a return on equity of 9.61%. Analysts predict that United Community Banks will post 2.98 earnings per share for the current year.

Insider Activity

In other news, EVP Richard Bradshaw sold 1,424 shares of the company's stock in a transaction dated Monday, July 27th. The shares were sold at an average price of $35.09, for a total transaction of $49,968.16. Following the transaction, the executive vice president owned 83,228 shares in the company, valued at $2,920,470.52. This represents a 1.68% 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, EVP Jefferson L. Harralson sold 25,000 shares of United Community Banks stock in a transaction dated Tuesday, July 28th. The stock was sold at an average price of $35.41, for a total value of $885,250.00. Following the sale, the executive vice president directly owned 37,433 shares of the company's stock, valued at approximately $1,325,502.53. This represents a 40.04% decrease in their position. The SEC filing for this sale provides additional information. 0.45% of the stock is owned by insiders.

Institutional Investors Weigh In On United Community Banks

Several hedge funds have recently added to or reduced their stakes in the business. Bank of New York Mellon Corp purchased a new stake in shares of United Community Banks in the second quarter valued at about $55,195,000. Norges Bank purchased a new stake in shares of United Community Banks during the 4th quarter worth approximately $48,450,000. Vaughan Nelson Investment Management L.P. acquired a new stake in shares of United Community Banks in the 1st quarter worth approximately $34,183,000. Algebris UK Ltd. acquired a new position in United Community Banks during the fourth quarter worth $9,294,000. Finally, Principal Financial Group Inc. boosted its position in United Community Banks by 32.3% during the first quarter. Principal Financial Group Inc. now owns 766,598 shares of the company's stock worth $24,140,000 after purchasing an additional 187,210 shares in the last quarter. 82.29% of the stock is owned by hedge funds and other institutional investors.

About United Community Banks

United Community Banks, Inc is the bank holding company for United Community Bank, a regional financial institution headquartered in Blairsville, Georgia. Founded in 1950, the company provides banking and financial services to individuals, businesses and institutions across the Southeastern United States.

United Community Bank offers consumer and commercial deposit accounts, residential and commercial real estate lending, business loans, mortgages, treasury management and other financial services.

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