DA Davidson Reaffirms "Buy" Rating for U.S. Bancorp (NYSE:USB)

Key Points

• DA Davidson reiterated a Buy rating on U.S. Bancorp with a $65 price target, implying about a 16.7% upside from the current price.
• U.S. Bancorp beat Q1 estimates with EPS of $1.18 vs. $1.14 and revenue of roughly $7.29B (+4.7% YoY), and management sees Q2 net interest income and fee revenue growth of 6–7%, though investors were cautious over rising credit costs and higher provisions.
• The stock has a consensus “Moderate Buy” from analysts with an average target of $61.13, while shares traded around $55.71 (12‑month range $37.24–$61.19) and institutional investors own about 77.6% of the shares.

U.S. Bancorp (NYSE:USB - Get Free Report)'s stock had its "buy" rating reiterated by investment analysts at DA Davidson in a note issued to investors on Friday,Benzinga reports. They currently have a $65.00 target price on the financial services provider's stock. DA Davidson's target price would indicate a potential upside of 16.67% from the company's current price.

A number of other equities analysts also recently commented on USB. Argus lifted their target price on shares of U.S. Bancorp from $62.00 to $63.00 and gave the stock a "buy" rating in a research note on Thursday, January 22nd. Evercore lifted their price objective on shares of U.S. Bancorp from $60.00 to $65.00 and gave the company an "in-line" rating in a report on Thursday, February 5th. Barclays set a $67.00 target price on shares of U.S. Bancorp and gave the stock an "overweight" rating in a research note on Friday. UBS Group restated a "neutral" rating and issued a $60.00 price target on shares of U.S. Bancorp in a research note on Wednesday, February 4th. Finally, Piper Sandler restated a "buy" rating on shares of U.S. Bancorp in a research report on Thursday, February 26th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $61.13.

U.S. Bancorp Trading Down 1.2%

Shares of U.S. Bancorp stock opened at $55.71 on Friday. U.S. Bancorp has a 12-month low of $37.24 and a 12-month high of $61.19. The firm has a market capitalization of $86.48 billion, a price-to-earnings ratio of 12.00, a PEG ratio of 1.03 and a beta of 1.01. The company has a current ratio of 0.80, a quick ratio of 0.80 and a debt-to-equity ratio of 1.03. The firm's 50 day simple moving average is $54.58 and its two-hundred day simple moving average is $52.25.

U.S. Bancorp (NYSE:USB - Get Free Report) last issued its earnings results on Thursday, April 16th. The financial services provider reported $1.18 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.14 by $0.04. U.S. Bancorp had a net margin of 17.66% and a return on equity of 13.48%. The firm had revenue of $7.29 billion during the quarter, compared to analysts' expectations of $7.27 billion. During the same quarter last year, the company posted $1.03 earnings per share. The firm's revenue was up 4.7% compared to the same quarter last year. Analysts predict that U.S. Bancorp will post 4.38 EPS for the current year.

Insider Buying and Selling

In other U.S. Bancorp news, insider Mark G. Runkel sold 32,195 shares of the firm's stock in a transaction dated Friday, February 6th. The shares were sold at an average price of $60.65, for a total transaction of $1,952,626.75. Following the sale, the insider directly owned 97,728 shares of the company's stock, valued at $5,927,203.20. This trade represents a 24.78% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 0.21% of the company's stock.

Hedge Funds Weigh In On U.S. Bancorp

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Brighton Jones LLC grew its stake in U.S. Bancorp by 323.0% during the 4th quarter. Brighton Jones LLC now owns 48,274 shares of the financial services provider's stock valued at $2,309,000 after purchasing an additional 36,863 shares in the last quarter. Empowered Funds LLC lifted its position in shares of U.S. Bancorp by 2.1% in the 1st quarter. Empowered Funds LLC now owns 34,411 shares of the financial services provider's stock worth $1,453,000 after buying an additional 714 shares during the last quarter. Intech Investment Management LLC boosted its stake in U.S. Bancorp by 18.9% in the first quarter. Intech Investment Management LLC now owns 39,276 shares of the financial services provider's stock valued at $1,658,000 after acquiring an additional 6,252 shares during the period. Sivia Capital Partners LLC bought a new position in U.S. Bancorp during the 2nd quarter worth $425,000. Finally, Nebula Research & Development LLC bought a new position in shares of U.S. Bancorp during the second quarter worth about $701,000. Institutional investors and hedge funds own 77.60% of the company's stock.

Key Stories Impacting U.S. Bancorp

Here are the key news stories impacting U.S. Bancorp this week:

• Positive Sentiment: Q1 earnings beat — USB reported GAAP EPS of $1.18 vs. $1.14 expected and revenue of ~$7.29B (up ~4.7% YoY), driven by higher interest income and fee revenue. This is the core reason investors initially rallied. Reuters: Profit jumps
• Positive Sentiment: Revenue mix and deposits — Management highlighted net interest income and fee growth, record consumer deposits and broad-based loan growth, supporting durable revenue expansion. Yahoo: Q1 deep dive
• Positive Sentiment: Strategic partnerships — Announced partnerships (including an Amazon small-business tie-up and an NFL sponsorship) that could boost payments/fee revenue and brand reach over time. These are seen as long-term revenue drivers. Yahoo: Earnings call highlights Yahoo: NFL deal
• Neutral Sentiment: Forward posture — Company expects Q2 net interest income and fee revenue growth of 6–7% and kept full‑year net revenue outlook in a mid-single‑digit range; this gives guidance direction but leaves some execution risk. SeekingAlpha: Guidance
• Neutral Sentiment: Analyst stance — Jefferies kept a Hold but raised its price target to $60, signaling cautious optimism balanced against margin/headwind concerns. TipRanks: Analyst note
• Negative Sentiment: Rising credit costs — Several reports flagged higher credit provisions and rising credit costs that trimmed net income upside and raised investor caution about credit quality. Benzinga: Credit costs
• Negative Sentiment: Market reaction muted — Despite the beat, the stock slipped as investors weighed higher provisions and margin pressure vs. the positive top-line and partnership news. MSN: Market reaction

About U.S. Bancorp

U.S. Bancorp NYSE: USB is a bank holding company and the parent of U.S. Bank, a national commercial bank that provides a wide range of banking, investment, mortgage, trust and payment services. The company operates through consumer and business banking, commercial banking, payment services, and wealth management segments. Its product set includes deposit accounts, consumer and commercial lending, mortgage origination and servicing, credit and debit card services, treasury and cash management, merchant processing, and institutional and trust services.

Headquartered in Minneapolis, Minnesota, U.S.

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