BankUnited (NYSE:BKU) Cut to Sell at Wall Street Zen

Key Points

• Wall Street Zen downgraded BankUnited (NYSE:BKU) from a "hold" to a sell rating in a report released Saturday.
• Despite the downgrade, the street consensus remains a Moderate Buy with a consensus price target of $53.82; the stock opened at $46.69 and has a 12‑month range of $28.49–$52.11 (market cap ~$3.44B).
• Most recent quarter showed an EPS beat ($0.94 vs. $0.85 expected) but revenue missed ($260.8M vs. $279.8M), and insiders sold about 11,953 shares over the last 90 days (insider ownership ~1.15%).

BankUnited (NYSE:BKU - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report released on Saturday.

Several other research firms have also commented on BKU. Keefe, Bruyette & Woods boosted their price objective on BankUnited from $42.00 to $55.00 and gave the stock a "market perform" rating in a research note on Thursday, January 22nd. The Goldman Sachs Group reiterated a "sell" rating on shares of BankUnited in a research note on Monday, February 2nd. Cantor Fitzgerald upped their price target on BankUnited from $51.00 to $56.00 and gave the company an "overweight" rating in a research report on Tuesday, March 3rd. Jefferies Financial Group cut their price target on BankUnited from $65.00 to $60.00 and set a "buy" rating for the company in a report on Monday, February 2nd. Finally, Susquehanna raised BankUnited to a "positive" rating in a report on Wednesday, January 21st. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $53.82.

BankUnited Price Performance

NYSE:BKU opened at $46.69 on Friday. BankUnited has a 12 month low of $28.49 and a 12 month high of $52.11. The stock has a 50 day moving average of $46.70 and a two-hundred day moving average of $43.93. The company has a current ratio of 0.82, a quick ratio of 0.82 and a debt-to-equity ratio of 0.51. The firm has a market cap of $3.44 billion, a P/E ratio of 13.19 and a beta of 1.26.

BankUnited (NYSE:BKU - Get Free Report) last posted its quarterly earnings data on Wednesday, January 21st. The financial services provider reported $0.94 EPS for the quarter, topping the consensus estimate of $0.85 by $0.09. BankUnited had a return on equity of 9.09% and a net margin of 14.14%.The company had revenue of $260.80 million during the quarter, compared to analyst estimates of $279.76 million. During the same period in the previous year, the business earned $0.91 EPS. On average, analysts expect that BankUnited will post 3.13 earnings per share for the current fiscal year.

Insider Activity at BankUnited

In related news, Director Sanjiv Sobti sold 5,000 shares of the stock in a transaction that occurred on Monday, February 9th. The stock was sold at an average price of $50.88, for a total value of $254,400.00. Following the completion of the sale, the director owned 18,816 shares of the company's stock, valued at approximately $957,358.08. This trade represents a 20.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Kevin A. Malcolm sold 3,447 shares of the stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $47.11, for a total value of $162,388.17. Following the completion of the sale, the insider directly owned 11,500 shares of the company's stock, valued at approximately $541,765. This represents a 23.06% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 11,953 shares of company stock valued at $591,492. 1.15% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Summit Global Investments acquired a new stake in BankUnited during the third quarter worth $698,000. HoldCo Asset Management LP acquired a new stake in BankUnited during the third quarter worth $35,752,000. TrueMark Investments LLC acquired a new stake in BankUnited during the third quarter worth $6,334,000. Tudor Investment Corp ET AL acquired a new stake in BankUnited during the third quarter worth $7,599,000. Finally, Assenagon Asset Management S.A. acquired a new stake in BankUnited during the third quarter worth $6,121,000. 99.70% of the stock is currently owned by hedge funds and other institutional investors.

About BankUnited

BankUnited, Inc is a bank holding company based in Miami Lakes, Florida, operating through its subsidiary BankUnited, National Association. The company provides a broad range of commercial banking products and services, including deposit accounts, commercial lending and treasury management. It serves middle-market and small-business clients, offering tailored financing solutions across a variety of industry sectors.

The bank's lending portfolio includes commercial and industrial loans, commercial real estate loans and construction financing, as well as residential mortgage lending.

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