Associated Banc (NYSE:ASB) Raised to "Overweight" at Barclays

Key Points

• Barclays upgraded Associated Banc (NYSE:ASB) from "equal weight" to "overweight" and raised its price target to $33, implying roughly a 25.5% upside from the prior close.
• Associated Banc beat recent quarterly estimates with EPS of $0.80 vs. $0.69 consensus and revenue of $393.5M vs. $382.1M, and its board authorized a $100 million share buyback (about 2.2% of shares outstanding).
• Analyst sentiment is broadly positive with a consensus rating of "Moderate Buy" (one Strong Buy, six Buy, five Hold) and an average price target of $29.60 after several firms adjusted ratings and targets.

Associated Banc (NYSE:ASB - Get Free Report) was upgraded by analysts at Barclays from an "equal weight" rating to an "overweight" rating in a research note issued to investors on Tuesday,Benzinga reports. The firm presently has a $33.00 price objective on the bank's stock, up from their prior price objective of $30.00. Barclays's price target points to a potential upside of 25.50% from the stock's previous close.

Several other research analysts also recently weighed in on ASB. Weiss Ratings raised shares of Associated Banc from a "hold (c+)" rating to a "buy (b)" rating in a research report on Tuesday, February 17th. Keefe, Bruyette & Woods lifted their target price on shares of Associated Banc from $29.00 to $30.00 and gave the stock a "market perform" rating in a research report on Friday, January 23rd. Wells Fargo & Company lifted their target price on shares of Associated Banc from $30.00 to $31.00 and gave the stock an "overweight" rating in a research report on Monday, March 30th. Truist Financial dropped their target price on shares of Associated Banc from $30.00 to $27.00 and set a "hold" rating on the stock in a research report on Monday, March 23rd. Finally, Stephens raised shares of Associated Banc from an "equal weight" rating to an "overweight" rating and dropped their target price for the stock from $30.00 to $29.00 in a research report on Friday, March 27th. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $29.60.

Associated Banc Stock Performance

Associated Banc stock opened at $26.30 on Tuesday. The firm's 50 day simple moving average is $26.56 and its 200-day simple moving average is $26.14. The company has a market cap of $4.35 billion, a P/E ratio of 9.49, a price-to-earnings-growth ratio of 1.21 and a beta of 0.77. The company has a debt-to-equity ratio of 0.81, a current ratio of 0.90 and a quick ratio of 0.90. Associated Banc has a fifty-two week low of $18.32 and a fifty-two week high of $29.51.

Associated Banc (NYSE:ASB - Get Free Report) last released its earnings results on Thursday, January 22nd. The bank reported $0.80 earnings per share for the quarter, topping the consensus estimate of $0.69 by $0.11. The business had revenue of $393.52 million for the quarter, compared to the consensus estimate of $382.06 million. Associated Banc had a net margin of 19.31% and a return on equity of 10.25%. During the same period last year, the firm posted $0.72 earnings per share. As a group, equities research analysts predict that Associated Banc will post 2.43 EPS for the current year.

Associated Banc declared that its Board of Directors has approved a share buyback plan on Tuesday, January 27th that authorizes the company to buyback $100.00 million in outstanding shares. This buyback authorization authorizes the bank to repurchase up to 2.2% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's board believes its stock is undervalued.

Insider Activity at Associated Banc

In related news, EVP Patrick Edward Ahern sold 14,731 shares of the business's stock in a transaction that occurred on Tuesday, February 10th. The shares were sold at an average price of $29.03, for a total transaction of $427,640.93. Following the transaction, the executive vice president directly owned 39,401 shares of the company's stock, valued at approximately $1,143,811.03. The trade was a 27.21% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director John B. Williams sold 2,325 shares of the business's stock in a transaction that occurred on Tuesday, February 3rd. The shares were sold at an average price of $28.05, for a total transaction of $65,216.25. Following the transaction, the director directly owned 70,959 shares in the company, valued at $1,990,399.95. The trade was a 3.17% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 23,656 shares of company stock valued at $677,789. Corporate insiders own 0.71% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in Associated Banc by 6.0% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 97,570 shares of the bank's stock worth $2,198,000 after acquiring an additional 5,531 shares in the last quarter. Millennium Management LLC grew its position in Associated Banc by 90.4% in the first quarter. Millennium Management LLC now owns 287,890 shares of the bank's stock worth $6,486,000 after acquiring an additional 136,648 shares in the last quarter. Goldman Sachs Group Inc. grew its position in Associated Banc by 139.1% in the first quarter. Goldman Sachs Group Inc. now owns 2,748,667 shares of the bank's stock worth $61,927,000 after acquiring an additional 1,598,951 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in Associated Banc by 13.9% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 496,392 shares of the bank's stock worth $11,184,000 after acquiring an additional 60,758 shares in the last quarter. Finally, Sivia Capital Partners LLC bought a new stake in Associated Banc in the second quarter worth approximately $328,000. 82.98% of the stock is owned by hedge funds and other institutional investors.

About Associated Banc

Associated Banc-Corp, through its primary subsidiary Associated Bank, N.A., is a regional financial services company headquartered in Green Bay, Wisconsin. The bank operates more than 200 branches across the Midwest, offering community-focused banking solutions for individuals, small businesses and commercial clients. Its emphasis on personalized service and regional decision-making supports long-standing customer relationships.

On the consumer side, Associated Bank provides checking and savings accounts, residential mortgages, home equity lines of credit, auto financing and credit card products.

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