Cullen/Frost Bankers, Inc. (NYSE:CFR) Given Average Rating of "Hold" by Brokerages

Key Points

• Analysts maintain a “Hold” consensus on Cullen/Frost Bankers, with seven hold, two sell, two buy, and two strong-buy ratings. The average 12-month price target is $152.42, below the stock’s reported $163.85 opening price.
• Second-quarter results exceeded expectations: EPS was $2.70 versus a $2.55 consensus estimate, while revenue reached $608.65 million compared with expectations of $589.72 million. Net interest income, loan balances, and non-interest income also increased year over year.
• The bank declared a $1.03 quarterly dividend, equivalent to $4.12 annually and a 2.5% yield, while also repurchasing $90 million of stock during the quarter. Shares remain near their 52-week high, and expenses rose 4.2% year over year.

Cullen/Frost Bankers, Inc. (NYSE:CFR - Get Free Report) has earned an average rating of "Hold" from the thirteen research firms that are presently covering the company, MarketBeat Ratings reports. Two investment analysts have rated the stock with a sell rating, seven have assigned a hold rating, two have assigned a buy rating and two have issued a strong buy rating on the company. The average 12-month price target among analysts that have updated their coverage on the stock in the last year is $152.4167.

A number of equities analysts have issued reports on CFR shares. Barclays increased their price target on Cullen/Frost Bankers from $155.00 to $160.00 and gave the company an "equal weight" rating in a research note on Tuesday, July 7th. Weiss Ratings reissued a "buy (b)" rating on shares of Cullen/Frost Bankers in a research note on Wednesday, July 15th. Raymond James Financial restated a "market perform" rating on shares of Cullen/Frost Bankers in a report on Wednesday, July 1st. Citigroup raised their target price on Cullen/Frost Bankers from $131.00 to $145.00 and gave the company a "sell" rating in a research note on Tuesday, June 30th. Finally, TD Cowen raised Cullen/Frost Bankers to a "strong-buy" rating in a report on Monday, April 13th.

Cullen/Frost Bankers Stock Down 1.8%

CFR stock opened at $163.85 on Friday. The firm's 50-day moving average is $150.97 and its two-hundred day moving average is $143.46. The company has a market capitalization of $10.29 billion, a price-to-earnings ratio of 15.95, a price-to-earnings-growth ratio of 2.98 and a beta of 0.54. Cullen/Frost Bankers has a 52 week low of $119.00 and a 52 week high of $169.09. The company has a current ratio of 0.65, a quick ratio of 0.65 and a debt-to-equity ratio of 0.05.

Cullen/Frost Bankers (NYSE:CFR - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The bank reported $2.70 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.55 by $0.15. Cullen/Frost Bankers had a net margin of 22.86% and a return on equity of 15.58%. The business had revenue of $608.65 million during the quarter, compared to analysts' expectations of $589.72 million. During the same period last year, the firm posted $2.39 earnings per share. On average, analysts forecast that Cullen/Frost Bankers will post 10.57 earnings per share for the current fiscal year.

Cullen/Frost Bankers Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Monday, August 31st will be issued a $1.03 dividend. This represents a $4.12 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date of this dividend is Monday, August 31st. Cullen/Frost Bankers's dividend payout ratio is presently 40.12%.

More Cullen/Frost Bankers News

Here are the key news stories impacting Cullen/Frost Bankers this week:

• Positive Sentiment: Quarterly earnings and revenue exceeded expectations. Second-quarter EPS was $2.70, up from $2.39 a year earlier and ahead of the approximately $2.53–$2.55 consensus. Revenue reached about $608.7 million versus estimates near $589.7 million. Cullen/Frost Bankers Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Profitability and core banking activity improved. Net income available to common shareholders rose to $170.4 million from $155.3 million. Net interest income increased 4.3% year over year, average loans grew 7.4% to $22.6 billion, and non-interest income advanced 9.4% to $128.3 million. Cullen/Frost Reports Second Quarter Results
• Positive Sentiment: The board maintained shareholder returns. Cullen/Frost declared a $1.03 quarterly common-stock dividend, equivalent to approximately $4.12 annually and a 2.5% yield, payable September 15 to shareholders of record August 31. The bank also repurchased 654,955 shares for $90 million during the quarter. Cullen/Frost Q2 Net Income Rises to $172.1 Million
• Neutral Sentiment: The results showed continued balance-sheet growth, with assets of $53.9 billion and deposits up 2.1% year over year to $42.6 billion. Return on equity was 15.58% and net margin was 22.86%. Cullen/Frost Q2 Earnings Snapshot
• Negative Sentiment: Expenses increased 4.2% year over year to $361.7 million, while deposit growth lagged loan growth. With shares trading near their 12-month high, the earnings beat may have already been partly reflected in the valuation, contributing to pressure following the release.

Insider Buying and Selling at Cullen/Frost Bankers

In other news, EVP Carol Jean Severyn sold 837 shares of Cullen/Frost Bankers stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $148.29, for a total value of $124,118.73. Following the transaction, the executive vice president owned 12,712 shares of the company's stock, valued at $1,885,062.48. The trade was a 6.18% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Company insiders own 1.14% of the company's stock.

Institutional Trading of Cullen/Frost Bankers

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Advisory Services Network LLC bought a new stake in Cullen/Frost Bankers during the third quarter worth approximately $28,000. Covestor Ltd increased its holdings in shares of Cullen/Frost Bankers by 67.6% in the fourth quarter. Covestor Ltd now owns 248 shares of the bank's stock valued at $31,000 after buying an additional 100 shares in the last quarter. Blue Trust Inc. increased its holdings in shares of Cullen/Frost Bankers by 252.1% in the fourth quarter. Blue Trust Inc. now owns 257 shares of the bank's stock valued at $33,000 after buying an additional 184 shares in the last quarter. Measured Wealth Private Client Group LLC bought a new position in shares of Cullen/Frost Bankers in the first quarter valued at $41,000. Finally, Geneos Wealth Management Inc. lifted its position in shares of Cullen/Frost Bankers by 40.8% during the 1st quarter. Geneos Wealth Management Inc. now owns 366 shares of the bank's stock valued at $46,000 after acquiring an additional 106 shares during the last quarter. 86.90% of the stock is owned by institutional investors and hedge funds.

About Cullen/Frost Bankers

Cullen/Frost Bankers, Inc is the holding company for Frost Bank, a Texas-chartered financial institution whose origins date back to 1868 in San Antonio. As one of the oldest banking organizations in the state, it offers a broad range of services to individuals, small and large businesses, and institutional clients. Core banking activities include commercial lending, deposit services, cash management and trade finance, while consumer products cover residential mortgages, personal lines of credit and home equity loans.

Beyond traditional banking, the company provides comprehensive treasury and equipment leasing solutions tailored to support working capital and capital expenditure requirements.

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