United Community Banks, Inc. (NYSE:UCB) Stock Rated "Moderate Buy" by Wall Street Analysts

Key Points

• Analysts rate UCB a “Moderate Buy”: Four analysts recommend buying the stock, one recommends a strong buy, and three recommend holding it. The average 12-month price target is $39.60 versus a recent price of $33.62.
• Quarterly earnings fell short of expectations: United Community Banks reported adjusted EPS of $0.71, below the $0.80 consensus estimate, on revenue of $279.28 million. Analysts expect full-year EPS of approximately $2.98.
• The company raised its quarterly dividend: The dividend increased from $0.25 to $0.26 per share, implying an annualized payout of $1.04 and a yield of about 3.1%. Institutional investors own 82.29% of the company, while recent insider transactions were sales.

United Community Banks, Inc. (NYSE:UCB - Get Free Report) has earned an average recommendation of "Moderate Buy" from the eight brokerages that are covering the firm, MarketBeat reports. Three investment analysts have rated the stock with a hold recommendation, four have given a buy recommendation and one has given a strong buy recommendation to the company. The average 1-year price objective among brokerages that have covered the stock in the last year is $39.60.

Several research analysts have issued reports on the stock. Wall Street Zen upgraded shares of United Community Banks from a "sell" rating to a "hold" rating in a research report on Saturday, September 12th. DA Davidson increased their price objective on United Community Banks from $40.00 to $42.00 and gave the company a "buy" rating in a research report on Wednesday, September 9th. Weiss Ratings reissued a "buy (b)" rating on shares of United Community Banks in a research note on Friday. Piper Sandler raised their price objective on United Community Banks from $37.00 to $38.00 and gave the stock a "neutral" rating in a research note on Wednesday, September 9th. Finally, Keefe, Bruyette & Woods lifted their target price on United Community Banks from $40.00 to $41.00 and gave the stock an "outperform" rating in a report on Wednesday, September 16th.

United Community Banks Stock Performance

NYSE:UCB opened at $33.62 on Wednesday. The company has a 50-day moving average of $35.27 and a 200-day moving average of $34.00. The firm has a market cap of $4.05 billion, a price-to-earnings ratio of 11.06 and a beta of 0.81. The company has a current ratio of 0.83, a quick ratio of 0.83 and a debt-to-equity ratio of 0.22. United Community Banks has a twelve month low of $28.65 and a twelve month high of $37.18.

United Community Banks (NYSE:UCB - Get Free Report) last released its earnings results on Tuesday, July 21st. The company reported $0.71 EPS for the quarter, missing analysts' consensus estimates of $0.80 by ($0.09). United Community Banks had a return on equity of 9.61% and a net margin of 24.43%.The business had revenue of $279.28 million during the quarter. Analysts forecast that United Community Banks will post 2.98 earnings per share for the current fiscal year.

United Community Banks Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, October 5th. Stockholders of record on Tuesday, September 15th will be issued a dividend of $0.26 per share. This is a positive change from United Community Banks's previous quarterly dividend of $0.25. This represents a $1.04 annualized dividend and a dividend yield of 3.1%. The ex-dividend date of this dividend is Tuesday, September 15th. United Community Banks's dividend payout ratio (DPR) is currently 34.21%.

Insiders Place Their Bets

In related news, EVP Richard Bradshaw sold 1,424 shares of United Community Banks stock in a transaction dated Monday, July 27th. The stock was sold at an average price of $35.09, for a total value of $49,968.16. Following the transaction, the executive vice president owned 83,228 shares of the company's stock, valued at approximately $2,920,470.52. This trade represents a 1.68% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Jefferson Harralson sold 25,000 shares of the business's stock in a transaction dated Tuesday, July 28th. The stock was sold at an average price of $35.41, for a total value of $885,250.00. Following the sale, the executive vice president owned 37,433 shares in the company, valued at approximately $1,325,502.53. The trade was a 40.04% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.45% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. QRG Capital Management Inc. lifted its position in shares of United Community Banks by 7.6% in the 2nd quarter. QRG Capital Management Inc. now owns 8,448 shares of the company's stock valued at $296,000 after acquiring an additional 596 shares in the last quarter. Engineers Gate Manager LP acquired a new position in United Community Banks in the 2nd quarter worth approximately $925,000. Integrated Wealth Concepts LLC purchased a new position in United Community Banks during the 2nd quarter worth approximately $37,000. Squarepoint Ops LLC grew its position in United Community Banks by 71.6% during the 2nd quarter. Squarepoint Ops LLC now owns 48,011 shares of the company's stock worth $1,685,000 after purchasing an additional 20,039 shares in the last quarter. Finally, Allworth Financial LP raised its stake in United Community Banks by 10.1% during the 2nd quarter. Allworth Financial LP now owns 3,256 shares of the company's stock valued at $114,000 after purchasing an additional 300 shares during the period. 82.29% of the stock is owned by hedge funds and other institutional investors.

About United Community Banks

United Community Banks, Inc is the bank holding company for United Community Bank, a regional financial institution headquartered in Blairsville, Georgia. Founded in 1950, the company provides banking and financial services to individuals, businesses and institutions across the Southeastern United States.

United Community Bank offers consumer and commercial deposit accounts, residential and commercial real estate lending, business loans, mortgages, treasury management and other financial services.

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