BankUnited (NYSE:BKU) Shares Gap Down Following Weak Earnings

Key Points

• Shares gapped down after BankUnited reported a Q result that missed expectations — EPS $0.83 vs. $0.93 consensus and revenue $273.69M vs. $284.57M — with the stock opening at $44.82 after a $46.77 close.
• BankUnited raised its quarterly dividend to $0.33 (annualized $1.32), a yield of about 2.9%, with an ex-dividend date of April 10 and payment on April 30.
• Analyst sentiment is mixed (average rating "Hold" with an average target of $53.82), while insiders have sold roughly 11,953 shares in the last 90 days and institutional investors own about 99.7% of the stock.

BankUnited, Inc. (NYSE:BKU - Get Free Report)'s share price gapped down before the market opened on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $46.77, but opened at $44.82. BankUnited shares last traded at $45.4080, with a volume of 229,714 shares traded.

The financial services provider reported $0.83 EPS for the quarter, missing analysts' consensus estimates of $0.93 by ($0.10). BankUnited had a net margin of 14.14% and a return on equity of 9.09%. The firm had revenue of $273.69 million during the quarter, compared to the consensus estimate of $284.57 million. During the same quarter last year, the firm earned $0.78 earnings per share.

BankUnited Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, April 30th. Stockholders of record on Friday, April 10th will be issued a $0.33 dividend. This represents a $1.32 annualized dividend and a dividend yield of 2.9%. The ex-dividend date is Friday, April 10th. This is a positive change from BankUnited's previous quarterly dividend of $0.31. BankUnited's dividend payout ratio is 37.29%.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on BKU. Susquehanna upgraded shares of BankUnited to a "positive" rating in a research note on Wednesday, January 21st. Barclays lowered their price objective on BankUnited from $55.00 to $53.00 and set an "equal weight" rating on the stock in a research report on Tuesday, April 7th. Zacks Research downgraded shares of BankUnited from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, April 14th. Citigroup upped their price objective on shares of BankUnited from $49.00 to $53.00 and gave the stock a "neutral" rating in a research report on Friday, January 23rd. Finally, Keefe, Bruyette & Woods raised their target price on BankUnited from $42.00 to $55.00 and gave the company a "market perform" rating in a report on Thursday, January 22nd. Seven investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $53.82.

Insider Transactions at BankUnited

In related news, insider Jay D. Richards sold 3,506 shares of the business's stock in a transaction on Tuesday, February 3rd. The stock was sold at an average price of $49.83, for a total transaction of $174,703.98. Following the sale, the insider owned 35,687 shares in the company, valued at $1,778,283.21. The trade was a 8.95% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Kevin A. Malcolm sold 3,447 shares of the company's stock in a transaction dated Wednesday, March 4th. The stock was sold at an average price of $47.11, for a total value of $162,388.17. Following the completion of the transaction, the insider directly owned 11,500 shares of the company's stock, valued at approximately $541,765. The trade was a 23.06% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 11,953 shares of company stock worth $591,492. Corporate insiders own 1.00% of the company's stock.

Institutional Trading of BankUnited

Several hedge funds and other institutional investors have recently made changes to their positions in BKU. Pictet Asset Management Holding SA increased its stake in shares of BankUnited by 31.8% in the first quarter. Pictet Asset Management Holding SA now owns 13,012 shares of the financial services provider's stock valued at $588,000 after buying an additional 3,136 shares during the period. Louisiana State Employees Retirement System acquired a new stake in BankUnited during the 1st quarter worth approximately $1,486,000. Assenagon Asset Management S.A. boosted its position in BankUnited by 169.2% during the 1st quarter. Assenagon Asset Management S.A. now owns 173,249 shares of the financial services provider's stock worth $7,824,000 after buying an additional 108,888 shares during the period. Caitong International Asset Management Co. Ltd bought a new stake in BankUnited during the 4th quarter worth approximately $63,000. Finally, DGS Capital Management LLC bought a new stake in BankUnited during the 4th quarter worth approximately $225,000. 99.70% of the stock is currently owned by institutional investors.

BankUnited Stock Performance

The company's 50-day simple moving average is $46.29 and its 200-day simple moving average is $44.45. The stock has a market capitalization of $3.37 billion, a price-to-earnings ratio of 12.83 and a beta of 1.26. The company has a current ratio of 0.82, a quick ratio of 0.82 and a debt-to-equity ratio of 0.51.

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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