DA Davidson Issues Pessimistic Forecast for UCB Earnings

Key Points

• DA Davidson has decreased its Q3 2025 earnings estimate for United Community Banks (UCB) from $0.69 to $0.68, while maintaining a "Buy" rating with a price objective of $36.00.
• The company reported Q2 earnings of $0.66 per share, exceeding analyst expectations, and has a current full-year earnings consensus estimate of $2.52 per share.
• United Community Banks has announced an increase in its quarterly dividend from $0.24 to $0.25, representing an annualized yield of 3.1%.

United Community Banks, Inc. (NASDAQ:UCB - Free Report) - Research analysts at DA Davidson dropped their Q3 2025 EPS estimates for shares of United Community Banks in a research report issued on Monday, August 25th. DA Davidson analyst G. Tenner now expects that the company will post earnings per share of $0.68 for the quarter, down from their prior forecast of $0.69. DA Davidson has a "Buy" rating and a $36.00 price target on the stock. The consensus estimate for United Community Banks' current full-year earnings is $2.52 per share. DA Davidson also issued estimates for United Community Banks' FY2026 earnings at $2.93 EPS.

United Community Banks (NASDAQ:UCB - Get Free Report) last issued its earnings results on Wednesday, July 23rd. The company reported $0.66 EPS for the quarter, topping the consensus estimate of $0.61 by $0.05. United Community Banks had a net margin of 16.48% and a return on equity of 8.64%. The business's revenue was up 6.1% on a year-over-year basis.

Several other research firms also recently issued reports on UCB. Hovde Group lifted their price target on United Community Banks from $35.00 to $36.00 and gave the stock an "outperform" rating in a research note on Thursday, July 24th. Raymond James Financial reaffirmed a "market perform" rating on shares of United Community Banks in a research note on Tuesday, July 8th. Finally, Keefe, Bruyette & Woods lifted their price target on United Community Banks from $32.00 to $34.00 and gave the stock a "market perform" rating in a research note on Monday, July 28th. Three investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $34.57.

United Community Banks Price Performance

Shares of NASDAQ:UCB traded down $0.09 during midday trading on Tuesday, hitting $33.41. 663,714 shares of the stock were exchanged, compared to its average volume of 709,819. The stock has a market cap of $4.06 billion, a P/E ratio of 16.38 and a beta of 0.83. The company has a current ratio of 0.78, a quick ratio of 0.78 and a debt-to-equity ratio of 0.08. United Community Banks has a twelve month low of $22.93 and a twelve month high of $35.38. The company has a 50 day moving average price of $31.11 and a 200-day moving average price of $29.33.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. M&T Bank Corp acquired a new position in shares of United Community Banks during the 1st quarter valued at about $926,000. Amalgamated Bank acquired a new position in shares of United Community Banks during the 1st quarter valued at about $957,000. Principal Financial Group Inc. acquired a new position in shares of United Community Banks during the 1st quarter valued at about $16,721,000. GAMMA Investing LLC acquired a new position in shares of United Community Banks during the 1st quarter valued at about $132,000. Finally, PNC Financial Services Group Inc. acquired a new position in shares of United Community Banks during the 1st quarter valued at about $460,000. Institutional investors and hedge funds own 82.29% of the company's stock.

Insiders Place Their Bets

In related news, EVP Richard Bradshaw sold 1,616 shares of the business's stock in a transaction dated Monday, July 28th. The shares were sold at an average price of $30.94, for a total value of $49,999.04. Following the completion of the transaction, the executive vice president owned 78,395 shares of the company's stock, valued at approximately $2,425,541.30. The trade was a 2.02% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 0.43% of the company's stock.

United Community Banks Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, October 3rd. Investors of record on Monday, September 15th will be paid a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 3.0%. The ex-dividend date of this dividend is Monday, September 15th. This is a positive change from United Community Banks's previous quarterly dividend of $0.24. United Community Banks's dividend payout ratio is presently 45.45%.

United Community Banks Company Profile

United Community Banks, Inc operates as the financial holding company for United Community Bank that provides financial products and services to commercial, retail, government, education, energy, health care, and real estate sectors. It accepts various deposit products, including checking, savings, money market, and other deposit accounts.