BlackRock Inc. Invests $982.24 Million in Zions Bancorporation, N.A. $ZION

Key Points

• BlackRock acquired 14.2 million Zions shares worth approximately $982.2 million, giving it a 9.65% stake. Institutional investors collectively own 76.84% of the bank.
• Zions exceeded quarterly earnings expectations, reporting $1.74 EPS versus the $1.57 consensus and $1.14 billion in revenue, up 35.7% year over year. The board also authorized a $225 million share repurchase program.
• The bank increased its quarterly dividend to $0.48 per share, representing a 2.8% yield. Analysts maintain a consensus “Hold” rating with an average price target of $71.29, while insiders sold roughly $6.3 million of stock during the quarter.

BlackRock Inc. bought a new stake in Zions Bancorporation, N.A. (NASDAQ:ZION - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm bought 14,196,331 shares of the bank's stock, valued at approximately $982,244,000. BlackRock Inc. owned 9.65% of Zions Bancorporation, N.A. at the end of the most recent quarter.

Other institutional investors have also recently added to or reduced their stakes in the company. Bessemer Group Inc. raised its position in Zions Bancorporation, N.A. by 5.2% in the first quarter. Bessemer Group Inc. now owns 3,159 shares of the bank's stock valued at $182,000 after purchasing an additional 157 shares during the period. Michels Family Financial LLC lifted its position in shares of Zions Bancorporation, N.A. by 1.5% during the fourth quarter. Michels Family Financial LLC now owns 12,142 shares of the bank's stock worth $711,000 after purchasing an additional 185 shares in the last quarter. C M Bidwell & Associates Ltd. boosted its stake in shares of Zions Bancorporation, N.A. by 13.5% in the fourth quarter. C M Bidwell & Associates Ltd. now owns 1,555 shares of the bank's stock valued at $91,000 after purchasing an additional 185 shares during the period. Alta Capital Management LLC boosted its stake in shares of Zions Bancorporation, N.A. by 0.7% in the fourth quarter. Alta Capital Management LLC now owns 27,838 shares of the bank's stock valued at $1,630,000 after purchasing an additional 203 shares during the period. Finally, Modern Wealth Management LLC grew its holdings in Zions Bancorporation, N.A. by 4.7% during the 1st quarter. Modern Wealth Management LLC now owns 4,670 shares of the bank's stock valued at $272,000 after purchasing an additional 209 shares in the last quarter. 76.84% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In related news, EVP Derek Steward sold 894 shares of the company's stock in a transaction on Tuesday, July 28th. The stock was sold at an average price of $69.65, for a total transaction of $62,267.10. Following the transaction, the executive vice president directly owned 17,449 shares of the company's stock, valued at approximately $1,215,322.85. The trade was a 4.87% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, President Scott J. Mclean sold 33,285 shares of the stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $70.63, for a total transaction of $2,350,919.55. Following the completion of the sale, the president directly owned 73,043 shares of the company's stock, valued at $5,159,027.09. This trade represents a 31.30% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 88,787 shares of company stock worth $6,283,858 over the last quarter. Corporate insiders own 1.43% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on ZION shares. TD Cowen lifted their target price on Zions Bancorporation, N.A. from $71.00 to $73.00 and gave the stock a "hold" rating in a research report on Tuesday, July 21st. Wells Fargo & Company raised their price objective on Zions Bancorporation, N.A. from $66.00 to $73.00 and gave the company an "equal weight" rating in a research note on Tuesday, July 21st. Morgan Stanley lifted their price objective on Zions Bancorporation, N.A. from $68.00 to $77.00 and gave the stock an "overweight" rating in a report on Monday, June 29th. Wall Street Zen upgraded Zions Bancorporation, N.A. from a "hold" rating to a "buy" rating in a research note on Saturday, August 8th. Finally, Cantor Fitzgerald raised their price target on shares of Zions Bancorporation, N.A. from $69.00 to $80.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 15th. Six equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $71.29.

Zions Bancorporation, N.A. Stock Performance

Shares of ZION opened at $68.14 on Friday. The firm has a market capitalization of $9.95 billion, a PE ratio of 8.68, a P/E/G ratio of 1.61 and a beta of 0.81. The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 0.26. The firm has a 50-day moving average price of $69.71 and a 200 day moving average price of $63.67. Zions Bancorporation, N.A. has a 52-week low of $46.19 and a 52-week high of $73.34.

Zions Bancorporation, N.A. (NASDAQ:ZION - Get Free Report) last issued its quarterly earnings results on Monday, July 20th. The bank reported $1.74 earnings per share for the quarter, topping analysts' consensus estimates of $1.57 by $0.17. Zions Bancorporation, N.A. had a net margin of 23.92% and a return on equity of 13.72%. The company had revenue of $1.14 billion during the quarter, compared to analyst estimates of $877.44 million. During the same period in the prior year, the business posted $1.63 EPS. The business's revenue for the quarter was up 35.7% compared to the same quarter last year. On average, sell-side analysts anticipate that Zions Bancorporation, N.A. will post 6.6 earnings per share for the current fiscal year.

Zions Bancorporation, N.A. declared that its board has authorized a stock repurchase program on Saturday, May 2nd that allows the company to buyback $225.00 million in shares. This buyback authorization allows the bank to reacquire up to 2.4% of its shares through open market purchases. Shares buyback programs are often a sign that the company's board believes its shares are undervalued.

Zions Bancorporation, N.A. Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, August 20th. Stockholders of record on Thursday, August 13th were given a $0.48 dividend. This represents a $1.92 annualized dividend and a dividend yield of 2.8%. This is an increase from Zions Bancorporation, N.A.'s previous quarterly dividend of $0.45. The ex-dividend date of this dividend was Thursday, August 13th. Zions Bancorporation, N.A.'s payout ratio is 24.46%.

Zions Bancorporation, N.A. Profile

Zions Bancorporation, N.A. is a bank holding company headquartered in Salt Lake City, Utah, offering a full suite of banking and financial services to individuals, businesses and institutions. Through its primary subsidiary, Zions Bank, the company provides commercial banking, retail banking and wealth management solutions designed to serve the needs of small businesses, middle‐market firms and high‐net‐worth clients. Its service portfolio includes deposit accounts, cash‐management tools, lending products, mortgage origination, treasury services and investment advisory services.

The company's commercial banking segment delivers custom credit and treasury management services, including working capital lines of credit, equipment financing and international trade finance.

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