United Bankshares (NASDAQ:UBSI) Stock Gets Downgrade from Wall Street Zen

Key Points

• Wall Street Zen downgraded United Bankshares from “hold” to “sell,” contrasting with a broader analyst consensus of “hold” and an average price target of $47.80.
• United Bankshares reported quarterly EPS of $0.94, slightly above the $0.93 consensus, while revenue of $325.1 million came in modestly below estimates. Net interest income and margins improved, but net income declined year over year and credit-loss provisions increased.
• The stock opened at $48.67, near its 52-week high of $49.62, with a $6.63 billion market capitalization; institutional investors own approximately 70.8% of outstanding shares.

United Bankshares (NASDAQ:UBSI - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "hold" rating to a "sell" rating in a report released on Saturday, Wall Street Zen reports.

A number of other research analysts have also recently weighed in on UBSI. Raymond James Financial boosted their price objective on shares of United Bankshares from $49.00 to $50.00 and gave the company an "outperform" rating in a research report on Wednesday, July 1st. Keefe, Bruyette & Woods raised their target price on shares of United Bankshares from $46.00 to $48.00 and gave the stock a "market perform" rating in a report on Monday, July 27th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of United Bankshares in a research note on Friday, October 2nd. Finally, Hovde Group upped their price target on shares of United Bankshares from $49.00 to $50.00 and gave the company a "market perform" rating in a report on Friday, July 24th. Three research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $47.80.

United Bankshares Price Performance

Shares of United Bankshares stock opened at $48.67 on Friday. The stock has a market cap of $6.63 billion, a price-to-earnings ratio of 13.19 and a beta of 0.72. The company has a debt-to-equity ratio of 0.10, a quick ratio of 0.97 and a current ratio of 0.98. The stock has a 50 day moving average price of $47.02 and a 200-day moving average price of $45.82. United Bankshares has a one year low of $34.68 and a one year high of $49.62.

United Bankshares (NASDAQ:UBSI - Get Free Report) last released its quarterly earnings results on Thursday, October 22nd. The financial services provider reported $0.94 earnings per share for the quarter, beating the consensus estimate of $0.93 by $0.01. United Bankshares had a return on equity of 9.33% and a net margin of 28.03%. The company had revenue of $325.10 million for the quarter, compared to analyst estimates of $327.23 million. During the same quarter in the prior year, the firm posted $0.92 EPS. Equities analysts expect that United Bankshares will post 3.72 EPS for the current year.

Insider Buying and Selling

In other United Bankshares news, Director Mark Nesselroad sold 3,200 shares of the stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $46.42, for a total value of $148,544.00. Following the sale, the director owned 32,224 shares in the company, valued at $1,495,838.08. This trade represents a 9.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 3.16% of the stock is owned by company insiders.

Institutional Trading of United Bankshares

A number of large investors have recently made changes to their positions in the stock. Root Financial Partners LLC lifted its holdings in United Bankshares by 64.4% during the 1st quarter. Root Financial Partners LLC now owns 786 shares of the financial services provider's stock valued at $33,000 after buying an additional 308 shares in the last quarter. Allworth Financial LP bought a new position in United Bankshares in the 2nd quarter worth about $43,000. Nykredit A S purchased a new position in shares of United Bankshares during the second quarter worth approximately $52,000. Farther Finance Advisors LLC increased its position in shares of United Bankshares by 49.4% during the third quarter. Farther Finance Advisors LLC now owns 1,355 shares of the financial services provider's stock worth $62,000 after acquiring an additional 448 shares during the period. Finally, Integrated Wealth Concepts LLC bought a new stake in shares of United Bankshares during the second quarter valued at approximately $68,000. 70.80% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting United Bankshares

Here are the key news stories impacting United Bankshares this week:

• Positive Sentiment: EPS beat expectations and improved year over year. UBSI reported diluted earnings of $0.94 per share, up from $0.92 a year earlier and ahead of the approximately $0.93 consensus estimate. Net income was $128.7 million. United Bankshares quarterly earnings report
• Positive Sentiment: Record net interest income and improving margins provide the strongest bullish catalyst. Net interest income reached $294.3 million, an $8.9 million sequential increase, while net interest margin expanded to 3.86% from 3.81% in the second quarter. These trends suggest improved core banking profitability. United Bankshares third-quarter earnings details
• Neutral Sentiment: Revenue was broadly in line but slightly below the consensus forecast. Quarterly revenue totaled $325.1 million versus analyst estimates of roughly $327.2 million. Zacks characterized the $0.94 EPS result as meeting its consensus estimate, indicating limited surprise overall. United Bankshares sales in line with estimates
• Negative Sentiment: Several profitability headwinds remain. Third-quarter net income declined from $130.7 million a year earlier and $131.4 million in the prior quarter. The provision for credit losses rose to $6.2 million from $5.0 million sequentially, noninterest income fell by $7.7 million, and noninterest expense increased by $2.0 million. These factors could limit further upside despite strong spread income. United Bankshares credit results

About United Bankshares

United Bankshares, Inc is a financial holding company that operates through its subsidiary, United Bank. The company provides a broad range of banking and financial services to individuals, businesses, nonprofit organizations and government entities.

United Bank's offerings include checking and savings accounts, certificates of deposit, residential and commercial real estate lending, consumer loans, commercial and industrial financing, treasury management and online and mobile banking.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.