Cullen/Frost Bankers (NYSE:CFR) Stock Price Expected to Rise, Citigroup Analyst Says

Key Points

• Citigroup raised its price target on Cullen/Frost Bankers from $131 to $145, but kept a sell rating and still sees about 6.14% downside from the current price.
• Wall Street views are mixed overall: the stock has received a range of upgrades and target-price increases, but the consensus rating remains Hold with an average price target of $150.73.
• Cullen/Frost Bankers recently beat earnings estimates, reporting $2.65 EPS versus $2.49 expected, while institutional investors continue to hold a large stake in the company.

Cullen/Frost Bankers (NYSE:CFR - Get Free Report) had its target price lifted by analysts at Citigroup from $131.00 to $145.00 in a research note issued on Tuesday,Benzinga reports. The brokerage currently has a "sell" rating on the bank's stock. Citigroup's price objective suggests a potential downside of 6.14% from the stock's current price.

Other analysts also recently issued research reports about the stock. TD Cowen raised shares of Cullen/Frost Bankers to a "strong-buy" rating in a research report on Monday, April 13th. Royal Bank Of Canada lifted their price objective on shares of Cullen/Frost Bankers from $150.00 to $155.00 and gave the company a "sector perform" rating in a research note on Friday, May 1st. Weiss Ratings raised Cullen/Frost Bankers from a "hold (c+)" rating to a "buy (b-)" rating in a report on Monday, March 2nd. DA Davidson boosted their price objective on Cullen/Frost Bankers from $143.00 to $144.00 and gave the company a "neutral" rating in a research note on Monday, May 4th. Finally, Cantor Fitzgerald restated a "neutral" rating on shares of Cullen/Frost Bankers in a research note on Monday, June 1st. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, five have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $150.73.

Cullen/Frost Bankers Price Performance

Shares of CFR traded down $0.29 during trading hours on Tuesday, reaching $154.48. The stock had a trading volume of 130,684 shares, compared to its average volume of 565,939. The company has a debt-to-equity ratio of 0.05, a quick ratio of 0.65 and a current ratio of 0.65. Cullen/Frost Bankers has a 12 month low of $119.00 and a 12 month high of $156.21. The stock has a market capitalization of $9.70 billion, a PE ratio of 15.03, a PEG ratio of 3.91 and a beta of 0.55. The company's 50-day moving average is $141.99 and its two-hundred day moving average is $138.67.

Cullen/Frost Bankers (NYSE:CFR - Get Free Report) last posted its earnings results on Thursday, April 30th. The bank reported $2.65 earnings per share for the quarter, topping analysts' consensus estimates of $2.49 by $0.16. The firm had revenue of $574.84 million for the quarter, compared to analyst estimates of $587.28 million. Cullen/Frost Bankers had a net margin of 22.86% and a return on equity of 15.58%. During the same period in the previous year, the firm posted $2.30 EPS. Research analysts expect that Cullen/Frost Bankers will post 10.54 EPS for the current year.

Insider Buying and Selling

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 transaction of $124,118.73. Following the completion of the transaction, the executive vice president directly owned 12,712 shares in the company, valued at approximately $1,885,062.48. This trade represents a 6.18% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 1.14% of the stock is owned by insiders.

Hedge Funds Weigh In On Cullen/Frost Bankers

Several large investors have recently modified their holdings of the stock. Goldman Sachs Group Inc. lifted its stake in shares of Cullen/Frost Bankers by 61.6% in the first quarter. Goldman Sachs Group Inc. now owns 605,697 shares of the bank's stock worth $75,833,000 after buying an additional 230,993 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in Cullen/Frost Bankers by 9.9% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 166,900 shares of the bank's stock worth $20,896,000 after acquiring an additional 15,063 shares during the last quarter. Geneos Wealth Management Inc. lifted its position in Cullen/Frost Bankers by 40.8% in 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 in the last quarter. Invesco Ltd. boosted its stake in Cullen/Frost Bankers by 12.2% during the 2nd quarter. Invesco Ltd. now owns 126,040 shares of the bank's stock valued at $16,201,000 after purchasing an additional 13,718 shares during the last quarter. Finally, EverSource Wealth Advisors LLC boosted its stake in Cullen/Frost Bankers by 82.9% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,174 shares of the bank's stock valued at $151,000 after purchasing an additional 532 shares during the last quarter. Hedge funds and other institutional investors own 86.90% of the company's stock.

Cullen/Frost Bankers Company Profile

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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