Zions Bancorporation, N.A. (NASDAQ:ZION) Price Target Cut to $77.00 by Analysts at Morgan Stanley

Key Points

• Morgan Stanley cut its price target for Zions Bancorporation from $78 to $77 and maintained an “underweight” rating, although the target implies approximately 19% upside from the stock’s $64.62 price.
• Zions reported a stronger-than-expected third quarter, with EPS of $1.78 versus the $1.64 consensus. Credit quality improved significantly, with charge-offs declining and capital ratios strengthening, though revenue slightly missed estimates.
• Analyst sentiment remains mixed: the consensus rating is “Hold” with an average price target of $72.59, while the bank has authorized a $75 million share repurchase plan and insiders have sold about $6.3 million of stock over the past 90 days.

Zions Bancorporation, N.A. (NASDAQ:ZION - Get Free Report) had its target price lowered by equities research analysts at Morgan Stanley from $78.00 to $77.00 in a note issued to investors on Tuesday, Benzinga reports. The brokerage presently has an "underweight" rating on the bank's stock. Morgan Stanley's price target would indicate a potential upside of 19.16% from the company's current price.

Several other research firms have also recently issued reports on ZION. UBS Group began coverage on shares of Zions Bancorporation, N.A. in a research report on Monday, September 14th. They set a "buy" rating and a $78.00 price objective for the company. Truist Financial decreased their target price on shares of Zions Bancorporation, N.A. from $72.00 to $67.00 and set a "hold" rating on the stock in a report on Friday, October 9th. Royal Bank Of Canada reissued a "sector perform" rating and issued a $76.00 price target on shares of Zions Bancorporation, N.A. in a research note on Tuesday. Wall Street Zen raised shares of Zions Bancorporation, N.A. from a "hold" rating to a "buy" rating in a research note on Saturday, August 8th. Finally, Weiss Ratings restated a "buy (b)" rating on shares of Zions Bancorporation, N.A. in a report on Friday, July 31st. Seven investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, Zions Bancorporation, N.A. has a consensus rating of "Hold" and an average target price of $72.59.

Zions Bancorporation, N.A. Price Performance

Shares of NASDAQ:ZION traded up $1.48 during midday trading on Tuesday, hitting $64.62. The company had a trading volume of 1,884,754 shares, compared to its average volume of 1,651,172. Zions Bancorporation, N.A. has a twelve month low of $48.50 and a twelve month high of $73.34. The company has a debt-to-equity ratio of 0.26, a current ratio of 0.84 and a quick ratio of 0.84. The stock has a market cap of $9.43 billion, a price-to-earnings ratio of 8.23, a price-to-earnings-growth ratio of 1.04 and a beta of 0.84. The business's 50-day simple moving average is $66.22 and its 200-day simple moving average is $65.64.

Zions Bancorporation, N.A. (NASDAQ:ZION - Get Free Report) last announced its quarterly earnings data on Monday, October 19th. The bank reported $1.78 EPS for the quarter, topping analysts' consensus estimates 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 13.72% and a net margin of 23.92%. During the same quarter last year, the business posted $1.48 earnings per share. On average, research analysts predict that Zions Bancorporation, N.A. will post 6.60 earnings per share for the current year.

Zions Bancorporation, N.A. announced that its Board of Directors has initiated a stock repurchase plan on Thursday, July 30th that authorizes the company to buy back $75.00 million in shares. This repurchase authorization authorizes the bank to reacquire up to 0.7% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's board of directors believes its stock is undervalued.

Insider Activity at Zions Bancorporation, N.A.

In other Zions Bancorporation, N.A. news, EVP Derek Steward sold 894 shares of Zions Bancorporation, N.A. stock in a transaction dated Tuesday, July 28th. The shares were sold at an average price of $69.65, for a total transaction of $62,267.10. Following the completion of the sale, the executive vice president directly owned 17,449 shares in the company, valued at $1,215,322.85. This trade represents a 4.87% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, President Scott J. Mclean sold 33,285 shares of the business's stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $70.63, for a total transaction of $2,350,919.55. Following the completion of the sale, the president directly owned 73,043 shares in the company, valued at $5,159,027.09. This trade represents a 31.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 88,787 shares of company stock worth $6,283,858. Company insiders own 1.43% of the company's stock.

Institutional Trading of Zions Bancorporation, N.A.

Several institutional investors have recently added to or reduced their stakes in ZION. BlackRock Inc. acquired a new stake in Zions Bancorporation, N.A. during the second quarter worth approximately $982,244,000. Bank of New York Mellon Corp purchased a new stake in shares of Zions Bancorporation, N.A. during the 2nd quarter worth approximately $87,961,000. Deutsche Bank AG acquired a new position in shares of Zions Bancorporation, N.A. in the 2nd quarter valued at $71,767,000. The Manufacturers Life Insurance Company acquired a new position in shares of Zions Bancorporation, N.A. in the 2nd quarter valued at $54,688,000. Finally, Azora Capital LP acquired a new position in shares of Zions Bancorporation, N.A. in the 2nd quarter valued at $52,233,000. Institutional investors and hedge funds own 76.84% of the company's stock.

Zions Bancorporation, N.A. News Roundup

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

• Positive Sentiment: Q3 earnings beat estimates: Zions reported net earnings applicable to common shareholders of $262 million, or $1.78 per diluted share, compared with $1.48 a year earlier and the $1.64 consensus estimate. Net interest income rose 2% year over year to $684 million, while deposits increased 4% to $77.9 billion. Zions third-quarter financial results
• Positive Sentiment: Credit quality improved substantially: Net loan and lease charge-offs fell to $3 million from $56 million a year earlier, and the provision for credit losses was an $8 million benefit versus a $49 million expense in the prior-year quarter. Loans grew 4% to $62.5 billion, and the estimated common equity tier 1 capital ratio improved to 11.8% from 11.3%. Zions net charge-offs report
• Positive Sentiment: Analyst support increased: DA Davidson raised its price target to $80 from $79 and maintained a “buy” rating, signaling confidence in Zions’ earnings and operating outlook. DA Davidson price-target update
• Neutral Sentiment: JPMorgan raised its price target to $87 from $86 but retained an “underweight” rating. TD Cowen maintained “hold” with a $69 target, while RBC kept a “sector perform” rating and a $76 target. The higher targets imply valuation upside, but the ratings indicate that some firms remain cautious. Analyst rating updates
• Negative Sentiment: Revenue slightly missed expectations: Quarterly revenue was reported at approximately $881 million to $887 million, below consensus estimates near $890 million. Noninterest expense also increased 5% year over year to $553 million, limiting the earnings upside.

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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