Bank of New York Mellon Corp Purchases Shares of 1,572,963 United Community Banks, Inc. $UCB

Key Points

• Bank of New York Mellon acquired 1.57 million shares of United Community Banks worth approximately $55.2 million, representing about 1.31% of the company. Institutional investors collectively own 82.29% of UCB.
• United Community Banks reported quarterly EPS of $0.71, below the $0.80 analyst consensus, on revenue of $279.28 million. The stock opened at $35.21, with a consensus analyst rating of “Moderate Buy” and an average price target of $38.80.
• The company raised its quarterly dividend from $0.25 to $0.26 per share, equivalent to an annualized $1.04 payout and a 3.0% yield.

Bank of New York Mellon Corp purchased a new stake in shares of United Community Banks, Inc. (NYSE:UCB - Free Report) in the second quarter, according to its most recent 13F filing with the SEC. The fund purchased 1,572,963 shares of the company's stock, valued at approximately $55,195,000. Bank of New York Mellon Corp owned approximately 1.31% of United Community Banks at the end of the most recent reporting period.

Several other institutional investors have also recently made changes to their positions in UCB. Vanguard Group Inc. boosted its position in shares of United Community Banks by 0.8% during the 4th quarter. Vanguard Group Inc. now owns 14,514,731 shares of the company's stock valued at $453,150,000 after acquiring an additional 120,156 shares during the last quarter. Dimensional Fund Advisors LP increased its position in shares of United Community Banks by 2.9% during the 1st quarter. Dimensional Fund Advisors LP now owns 6,520,132 shares of the company's stock valued at $205,315,000 after purchasing an additional 182,397 shares during the last quarter. Invesco Ltd. raised its holdings in shares of United Community Banks by 7.4% during the 4th quarter. Invesco Ltd. now owns 1,805,308 shares of the company's stock valued at $56,362,000 after buying an additional 124,347 shares in the last quarter. Norges Bank purchased a new position in shares of United Community Banks during the 4th quarter valued at about $48,450,000. Finally, Goldman Sachs Group Inc. boosted its stake in shares of United Community Banks by 70.6% in the 4th quarter. Goldman Sachs Group Inc. now owns 1,380,627 shares of the company's stock valued at $43,103,000 after purchasing an additional 571,296 shares in the last quarter. Institutional investors own 82.29% of the company's stock.

United Community Banks Price Performance

NYSE UCB opened at $35.21 on Thursday. The stock has a 50-day moving average of $35.45 and a 200 day moving average of $33.79. The company has a debt-to-equity ratio of 0.22, a quick ratio of 0.83 and a current ratio of 0.83. The company has a market capitalization of $4.25 billion, a price-to-earnings ratio of 11.58 and a beta of 0.82. United Community Banks, Inc. has a one year low of $28.65 and a one year high of $37.18.

United Community Banks (NYSE:UCB - Get Free Report) last posted 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 company had revenue of $279.28 million during the quarter. On average, sell-side analysts forecast that United Community Banks, Inc. will post 2.93 EPS for the current year.

United Community Banks Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, October 5th. Shareholders of record on Tuesday, September 15th will be issued a dividend of $0.26 per share. This is a boost from United Community Banks's previous quarterly dividend of $0.25. This represents a $1.04 dividend on an annualized basis and a yield of 3.0%. The ex-dividend date of this dividend is Tuesday, September 15th. United Community Banks's payout ratio is 32.89%.

Insider Activity

In related news, EVP Richard Bradshaw sold 1,424 shares of the business's 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 sale, the executive vice president directly owned 83,228 shares in the company, valued at approximately $2,920,470.52. The trade was a 1.68% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Jefferson L. Harralson sold 25,000 shares of the stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $35.41, for a total value of $885,250.00. Following the transaction, the executive vice president owned 37,433 shares of the company's stock, valued at $1,325,502.53. This represents a 40.04% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.45% of the stock is owned by insiders.

Analysts Set New Price Targets

A number of analysts have recently weighed in on UCB shares. Piper Sandler reissued a "neutral" rating and set a $37.00 price objective on shares of United Community Banks in a research note on Wednesday, July 22nd. Weiss Ratings raised shares of United Community Banks from a "buy (b-)" rating to a "buy (b)" rating in a research report on Tuesday, June 30th. DA Davidson reiterated a "buy" rating and set a $40.00 target price on shares of United Community Banks in a report on Wednesday, July 22nd. Wall Street Zen cut United Community Banks from a "hold" rating to a "sell" rating in a research note on Saturday, June 27th. Finally, TD Cowen upgraded United Community Banks to a "strong-buy" rating in a report on Thursday, July 16th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $38.80.

About United Community Banks

United Community Banks, Inc NYSE: UCB is a bank holding company headquartered in Blairsville, Georgia. It operates primarily through its subsidiary, United Community Bank, providing a broad range of banking and financial services to individual, business and governmental customers. The company's core offerings include deposit accounts, commercial and consumer lending, mortgage origination, treasury and cash management services, and wealth management.

In addition to traditional banking products such as checking, savings and money market accounts, United Community Bank specializes in commercial real estate financing, small business administration (SBA) loans, equipment financing and agricultural lending.

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