BlackRock Inc. Invests $1.70 Billion in Pinnacle Financial Partners, Inc. $PNFP

Key Points

• BlackRock acquired a major PNFP stake: The firm bought 16.9 million shares worth approximately $1.70 billion, giving it a 21.78% ownership position. Institutional investors collectively own 87.4% of Pinnacle Financial Partners.
• Analysts remain broadly positive: The stock has a consensus “Moderate Buy” rating and an average price target of $118.35, while recent targets range as high as $130.
• Pinnacle reported solid results and maintains a dividend: Quarterly earnings of $2.50 per share exceeded estimates, and the company declared a $0.50 quarterly dividend, equivalent to a 2.0% annual yield.

BlackRock Inc. acquired a new stake in Pinnacle Financial Partners, Inc. (NYSE:PNFP - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm acquired 16,898,375 shares of the company's stock, valued at approximately $1,704,708,000. BlackRock Inc. owned approximately 21.78% of Pinnacle Financial Partners as of its most recent SEC filing.

Several other institutional investors have also recently bought and sold shares of the business. Goldman Sachs Group Inc. increased its position in Pinnacle Financial Partners by 6.2% during the 1st quarter. Goldman Sachs Group Inc. now owns 651,268 shares of the company's stock worth $69,060,000 after purchasing an additional 37,989 shares in the last quarter. Focus Partners Wealth boosted its holdings in shares of Pinnacle Financial Partners by 13.9% during the 1st quarter. Focus Partners Wealth now owns 4,755 shares of the company's stock valued at $504,000 after acquiring an additional 581 shares in the last quarter. Amundi grew its position in Pinnacle Financial Partners by 25,700.0% during the 2nd quarter. Amundi now owns 4,386 shares of the company's stock worth $513,000 after acquiring an additional 4,369 shares during the last quarter. Jump Financial LLC acquired a new position in Pinnacle Financial Partners in the 2nd quarter worth about $229,000. Finally, Cerity Partners LLC raised its position in Pinnacle Financial Partners by 4.2% in the second quarter. Cerity Partners LLC now owns 26,061 shares of the company's stock valued at $2,877,000 after purchasing an additional 1,039 shares during the last quarter. Institutional investors and hedge funds own 87.40% of the company's stock.

Insider Activity

In related news, insider M Terry Turner sold 54,107 shares of the firm's stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $108.13, for a total transaction of $5,850,589.91. Following the completion of the sale, the insider owned 248,123 shares of the company's stock, valued at $26,829,539.99. This trade represents a 17.90% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Robert A. Mccabe, Jr. bought 10,013 shares of the stock in a transaction on Friday, July 24th. The stock was acquired at an average price of $99.90 per share, with a total value of $1,000,298.70. Following the completion of the acquisition, the insider owned 324,233 shares of the company's stock, valued at $32,390,876.70. This represents a 3.19% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders have sold 177,228 shares of company stock worth $19,153,713. 1.30% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

PNFP has been the topic of several research reports. Benchmark boosted their price target on Pinnacle Financial Partners from $125.00 to $130.00 and gave the stock a "buy" rating in a report on Wednesday, August 5th. Robert W. Baird initiated coverage on shares of Pinnacle Financial Partners in a report on Tuesday, May 19th. They set an "outperform" rating and a $115.00 target price on the stock. Wells Fargo & Company raised their price target on shares of Pinnacle Financial Partners from $111.00 to $118.00 and gave the company an "equal weight" rating in a research note on Monday, August 10th. Stephens set a $112.00 price target on shares of Pinnacle Financial Partners in a report on Monday, July 27th. Finally, Wall Street Zen upgraded Pinnacle Financial Partners from a "sell" rating to a "hold" rating in a report on Tuesday, May 12th. Two analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, Pinnacle Financial Partners has an average rating of "Moderate Buy" and a consensus price target of $118.35.

Pinnacle Financial Partners Stock Performance

Pinnacle Financial Partners stock opened at $101.76 on Thursday. The company has a market cap of $7.89 billion, a price-to-earnings ratio of 13.98, a price-to-earnings-growth ratio of 0.42 and a beta of 1.03. Pinnacle Financial Partners, Inc. has a 52-week low of $81.08 and a 52-week high of $110.33. The company has a current ratio of 0.94, a quick ratio of 0.93 and a debt-to-equity ratio of 0.73. The stock's 50 day moving average price is $101.35.

Pinnacle Financial Partners (NYSE:PNFP - Get Free Report) last posted its quarterly earnings data on Wednesday, July 22nd. The company reported $2.50 earnings per share for the quarter, topping the consensus estimate of $2.46 by $0.04. Pinnacle Financial Partners had a net margin of 15.40% and a return on equity of 10.93%. The company had revenue of $1.24 billion during the quarter, compared to analysts' expectations of $1.24 billion. As a group, equities research analysts predict that Pinnacle Financial Partners, Inc. will post 10.19 EPS for the current fiscal year.

Pinnacle Financial Partners Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Friday, August 7th will be paid a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date of this dividend is Friday, August 7th. Pinnacle Financial Partners's payout ratio is currently 27.47%.

Pinnacle Financial Partners Profile

Pinnacle Financial Partners NYSE: PNFP is a bank holding company headquartered in Nashville, Tennessee, that provides a broad range of commercial and consumer banking services. Founded in 2000, the company operates through a network of banking offices and digital channels to serve individuals, small and middle-market businesses, and institutional clients. Pinnacle’s business model emphasizes relationship-based banking and tailored financial solutions for commercial borrowers and deposit customers.

The company’s product and service offerings include commercial and residential lending, treasury and payment solutions, deposit accounts, mortgage services, and cash management.

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